Core Viewpoint - The market experienced a V-shaped rebound in the afternoon of August 28, with all three major indices closing in the green, indicating a strong recovery in investor sentiment [1] Group 1: Market Performance - The ChiNext 50 Index surged over 7%, with companies like Cambrian and SMIC reaching historical highs [1] - The total trading volume in the Shanghai and Shenzhen markets was 2.97 trillion, a decrease of 194.8 billion compared to the previous trading day [1] - The Shanghai Composite Index rose by 1.14%, the Shenzhen Component Index increased by 2.25%, and the ChiNext Index gained 3.82% [1]

Core Viewpoint - The company's performance in the first half of 2025 met market expectations, with significant year-on-year growth in net profit and operating income [1] Financial Performance - The company reported operating income of 7.463 billion yuan, a year-on-year increase of 2.8% - Pre-tax profit reached approximately 1.422 billion yuan, up 111.4% year-on-year - Net profit attributable to shareholders was 779 million yuan, reflecting a year-on-year increase of 153.3% - Segment profits for various businesses were as follows: fluoropolymer materials 259.2 million yuan (down 14.6%), organosilicon 8.75 million yuan (down 83.7%), refrigerants 1.02983 billion yuan (up 209.8%), and dichloromethane and caustic soda 213.69 million yuan (up 61.0%) [1] Development Trends - The profitability of refrigerants is expected to improve, with cost reduction and efficiency enhancement measures showing results - The estimated refrigerant quota for 2025 is approximately 129,300 tons, with a projected after-tax profit of around 15,000 yuan per ton for the first half of 2025 - The company has successfully reduced distribution and sales expenses by 7.61% and administrative expenses by 5.17% year-on-year, leading to significant profit improvement [1] Industry Outlook - Despite pressure on the fluoropolymer industry, the company's production and sales remain stable, with a lower decline in profitability compared to the industry average - The fluoropolymer and organosilicon businesses are expected to recover as macroeconomic demand improves and prices approach historical lows [2] - The company is advancing its fluoropolymer and fourth-generation refrigerant projects, with significant investments planned for high-purity PTFE production and green intelligent upgrades of production lines [2] Profit Forecast and Valuation - The company's net profit forecast for 2025 has been adjusted down by 10% to 1.902 billion yuan, while the 2026 net profit is maintained at 2.694 billion yuan - Current price-to-earnings ratios for 2025 and 2026 are 11.2x and 7.8x, respectively - The target price has been raised by 15% to 16.68 HKD per share, indicating a potential upside of 24.3% from the current stock price [2]

Group 1: Company Overview - The company is Guangzhou Gaolan Energy-saving Technology Co., Ltd., with stock code 300499 and abbreviation Gaolan Co. [1] - The online performance briefing was held on August 28, 2025, from 15:00 to 17:00 [2]. Group 2: Market Position and Performance - The company has a market share in liquid cooling servers, but specific statistics are not available [2]. - In the first half of 2025, the revenue from high-power density thermal management business, including data center and energy storage thermal management, was approximately 136,958,047.52 yuan, accounting for 32.78% of total revenue [3]. - As of June 30, 2025, the company had an order backlog amounting to approximately 11.39 billion yuan [3]. Group 3: Orders and Growth - The company experienced significant growth in high-voltage orders in the first half of 2025, with overseas orders exceeding 500 million yuan for two high-voltage direct current transmission projects in Saudi Arabia [3]. - The revenue from high-power electronic thermal management products increased by 239.39% year-on-year, primarily driven by the delivery of high-voltage direct current projects [3]. Group 4: Strategic Partnerships and Future Plans - The company has established long-term framework agreements with several key clients, with varying procurement ratios based on industry and application [4]. - Future plans include leveraging the advantages of liquid cooling technology, focusing on innovation and process improvement, and increasing investment in overseas markets [3].

Core Viewpoint - The three major indices opened lower on August 28, with the Shanghai Composite Index down 0.1%, the Shenzhen Component down 0.33%, and the ChiNext Index down 0.58% [1] Sector Performance - Active sectors at the opening included gas, precious metals, satellite internet, and 6G concepts [1] - Declining sectors at the opening included energy metals, insurance, liquid cooling, and rare earth permanent magnet concepts [1]

Gas Sector - Jiufeng Energy is providing special gas products to support low-orbit satellite launch missions [1] Metals Sector - Shengda Resources reports that the gold and silver concentrate produced by Jingshan Mining in the first half of the year will begin gradual sales in the third quarter [1] Liquid Cooling Sector - Wanma Technology is still in the development phase of liquid-cooled server cabinets for the communication industry [1] - Sulian Co., Ltd. is currently in a confidential stage regarding its cooperation with clients in the liquid cooling industry [1] Other Developments - Kangda New Materials has a subsidiary whose products are applied in the Tiangong-1 and Shenzhou-9 missions [1] - Zhejiang Zhenyuan's S1 production line for histidine products is scheduled to officially start production at the end of August [1] - Del Co., Ltd. has technical reserves related to hydrogen refueling machines and membrane electrodes [1] - Tuobang Co., Ltd. has established close cooperation with leading clients in humanoid robots for its hollow cup motors and components, and has received bulk orders [1]

Event Overview - The company reported its 2025 mid-year results, with a total revenue of 1.409 billion yuan, a year-on-year decrease of 0.62%. In Q2, revenue was 737 million yuan, a slight increase of 0.99% year-on-year, which was below market expectations [1] - Semiconductor revenue was 441 million yuan, down 1.31% year-on-year, attributed to a decline in overseas orders due to geopolitical factors, while domestic demand remained strong [1] - Food segment revenue reached 846 million yuan, up 5.41% year-on-year, driven by a mild recovery in the dairy beverage industry and an increase in market share [1] - Pharmaceutical revenue was 122 million yuan, down 27.53% year-on-year, reflecting a continued industry downturn [1] - The company anticipates a robust order intake for H2 2025, suggesting potential revenue acceleration [1] Profitability Analysis - The company achieved a net profit attributable to shareholders of 108 million yuan, with a net profit margin of 7.67%, down 2.24 percentage points year-on-year [2] - Gross margin for H1 2025 was 24.46%, a decrease of 1.11 percentage points, primarily due to the impact of new factory depreciation in Taiwan and Malaysia [2] - The company’s operating expenses ratio was 15.66%, an increase of 0.93 percentage points year-on-year, with stable expense ratios across various categories [2] - A reduction in government subsidies led to a decrease in non-operating income by 6.48 million yuan, further impacting profit performance [2] Industry Positioning - The company is a leading domestic supplier of semiconductor gas/liquid systems, supplying major global players and driving domestic substitution [3] - The establishment of a joint venture in 2024 aims to penetrate the liquid cooling market, addressing critical issues such as sealing performance [3] - The liquid cooling segment is expected to experience significant growth due to increasing temperature control demands from high-performance chips, with the company positioned as a comprehensive supplier [3] Investment Outlook - Revenue forecasts for 2025-2027 have been adjusted to 3.049 billion, 3.579 billion, and 4.367 billion yuan, reflecting year-on-year growth rates of 7%, 17%, and 22% respectively [4] - Net profit forecasts for the same period are 252 million, 323 million, and 427 million yuan, with corresponding year-on-year growth rates of 11%, 28%, and 32% [4] - The company’s stock price of 39.73 yuan corresponds to a PE ratio of 64, 50, and 38 for the years 2025, 2026, and 2027, respectively, indicating a positive outlook for future earnings growth [4]

Group 1 - The company, Suda Co., Ltd., reported a closing price of 43.96 yuan on August 26, with a decline of 1.08% compared to the previous trading day [1] - The trading volume on that day was 26,804 hands, with a transaction amount of 118 million yuan, resulting in a turnover rate of 14.11% [1] - Suda Co., Ltd. operates in the specialized equipment manufacturing industry, focusing on the research, production, and sales of industrial automation equipment, primarily used in electronics manufacturing, new energy, and automotive parts sectors [1] Group 2 - The company indicated on its investor interaction platform that it is currently conducting research on product and market plans in the liquid cooling sector, based on market conditions over the past two years [1] - As of now, the company has not commenced production in this area, but will disclose any substantial progress as required [1] - On August 26, the net outflow of main funds was 40.52 million yuan, accounting for 4.85% of the circulating market value, with a cumulative net outflow of 215 million yuan over the past five trading days, representing 25.69% of the circulating market value [1]

Core Insights - The liquid cooling market is emerging as a significant segment in the AI industry, projected to reach a scale of approximately 130 billion yuan by 2029, growing over seven times in five years [2][10][11] Market Growth - According to the China Academy of Information and Communications Technology, the liquid cooling market for intelligent computing centers in China is expected to grow from 18.4 billion yuan in 2024 to about 130 billion yuan by 2029, marking a growth of over 66.1% from 2023 [2][10] - The liquid cooling concept index has been on the rise, with a 31.35% increase observed from August 1 to August 26, 2025 [3] Technological Drivers - The rapid increase in AI computing power demands has led to a significant rise in chip power consumption, surpassing the cooling limits of traditional air cooling systems, making liquid cooling a necessary option [2][12] - The cooling requirements for high-power chips have increased dramatically, with CPU power consumption rising from around 150W to 450W-500W, and AI chips like NVIDIA's increasing from 450W to as high as 2200W [12][13] Market Trends - Cold plate liquid cooling is expected to become the mainstream solution, with a projected penetration rate of 30%-40% by 2030, primarily due to its maturity and minimal disruption to existing server ecosystems [12][16] - The current liquid cooling penetration rate is about 10%, with expectations for rapid growth in the coming years [16] Industry Developments - The global liquid cooling market is seeing increased interest from foreign leaders, while Chinese companies are also expanding into overseas markets [18][19] - Companies like Inspur have begun establishing overseas subsidiaries to tap into international markets, particularly in Southeast Asia and the Middle East [20]

Core Viewpoint - The liquid cooling market for intelligent computing centers in China is expected to grow significantly, reaching approximately 130 billion yuan by 2029, driven by the explosive demand for AI computing power and the limitations of traditional air cooling methods [2][8][10]. Market Growth - The liquid cooling market size in China is projected to be 184 billion yuan in 2024, representing a 66.1% increase from 2023, and is expected to grow over 7 times in the next five years [8][9]. - The penetration rate of liquid cooling technology is anticipated to reach at least 30% to 40% by 2030, with cold plate liquid cooling expected to dominate the market [10][12]. AI Computing Power Demand - The rapid increase in AI computing power has led to a significant rise in chip power consumption, with some chips exceeding 2700W, surpassing the cooling limits of air cooling [10][11]. - The average power consumption of CPUs has tripled over the past five years, with AI chips like NVIDIA's increasing from 450W to as high as 2200W [10][11]. Liquid Cooling Technology - The main types of liquid cooling solutions include cold plate liquid cooling, immersion liquid cooling, and spray cooling, with cold plate liquid cooling being the most mature and widely adopted [12]. - Currently, about 10% of newly produced servers utilize liquid cooling solutions, indicating a growing trend towards this technology [12]. Industry Challenges and Developments - The transition from air cooling to liquid cooling faces challenges such as longer construction and server development cycles, which may deter companies from adopting new technologies [13]. - The establishment of standardized protocols for liquid cooling technology is expected to facilitate its widespread adoption and improve operational reliability [13]. Global Market Dynamics - Global leaders in liquid cooling are intensifying efforts to enter the Chinese market, while Chinese companies are also exploring opportunities abroad [15][16]. - Companies like Inspur are expanding their overseas presence, with projects already delivered in Southeast Asia [16].

Group 1 - The company is currently focusing on product and market planning in the liquid cooling sector, based on market conditions over the past two years [2] - As of now, the company has not initiated production in the liquid cooling area [2] - The company will disclose any substantial progress or breakthroughs in liquid cooling according to relevant regulations in the future [2]