January 7, 2026 10:51 AM GMT Multi-Industry | North America M Update The Heat Is on Data Center Cooling What does NVDA commentary on future cooling demand mean for our US multi-industry coverage? Implications for Commercial HVAC and beyond. We have received a very high number of incomings in response to NVDA CEO Jensen Huang's commentary at CES 2026, which spoke to a reduction in cooling requirements for future chip releases (i.e., Rubin) – an update that weighed on the entire Data Center cooling complex. W ...

1月6日消息，受黄仁勋关于数据中心散热的言论影响，数据中心冷却股集体大跌，江森自控、特灵科技 一度跌10%，Modine一度跌20%，开利、维谛技术跌超5%。此前，黄仁勋在CES展会上表示，搭载新型 Rubin芯片的服务器机架将可采用无需水冷机的温度进行冷却，其所需气流与搭载Blackwell芯片的机架 基本相当。 ...

Summary of Liquid Cooling Industry Conference Call Industry Overview - The liquid cooling industry is experiencing significant growth driven by the surge in data center cooling demands and stricter PUE (Power Usage Effectiveness) regulations. The global AIDC (Artificial Intelligence Data Center) liquid cooling market is projected to reach approximately 110-115 billion RMB by 2026 [1][9]. Key Points and Arguments - **Market Dynamics**: The cost of cooling systems is expected to double to around 10% of total costs due to rapid server iterations. For instance, the value of server modules increased from $75,000 to $95,000, a 20% rise, as the GB300 phase introduced independent cold plates for each GPU [9][10]. - **Liquid Cooling Technology**: The technology is categorized into indirect contact, direct contact, and spray cooling. The single-sided cold plate is dominant in the North American market, while the Inrow model is suitable for new data centers, and the Inrack model is for retrofitting existing centers [2][6][7]. - **Key Components**: Liquid cooling plates are critical components, with significant technical barriers in the design and manufacturing of microchannel plates. These plates enhance heat transfer but require high stability and leak-proof performance [3][8][12]. Emerging Opportunities - **Domestic Supply Chain**: The opening of supplier permissions by NVIDIA in the GB300 phase allows domestic suppliers to enter the market, increasing the demand for cost-effective solutions as NVIDIA shifts towards cloud services [10][11]. - **Company Performance**: Leading companies like Yingwei and Hongsheng are expected to achieve significant performance milestones by 2026. Yingwei's market value is projected to reach 150 billion RMB, while Hongsheng's profits are expected to exceed 300 million RMB [3][5][14]. Additional Insights - **Technological Challenges**: The manufacturing of microchannel plates faces challenges such as low yield rates and high costs due to complex processes. Companies are actively experimenting to find efficient and cost-effective solutions [12][13]. - **Competitive Landscape**: Yingwei is recognized as a leading player with substantial orders from major clients like Google, while Hongsheng is positioned well within the supply chain, indicating a competitive edge in the liquid cooling market [14]. Conclusion - The liquid cooling industry is poised for rapid growth, driven by technological advancements and market dynamics. The shift towards domestic supply chains and the performance of key players will be crucial in shaping the future landscape of this industry [4][10].

Investment Rating - The report indicates a positive outlook for the liquid cooling industry, highlighting the entry of domestic supply chains and the expected growth in market value [1]. Core Insights - Liquid cooling technology is deemed essential for addressing the heat dissipation challenges in data centers, offering advantages such as low energy consumption, high cooling efficiency, low noise, and reduced total cost of ownership (TCO) [3][10]. - The value of liquid cooling systems is projected to increase significantly with the upgrade of chips, with estimates suggesting that the market for ASIC liquid cooling systems could reach 35.3 billion yuan and for NVIDIA systems could reach 69.7 billion yuan by 2026 [4]. - The report emphasizes the transition from traditional air cooling to liquid cooling as a necessity due to the rising power density of chips, with liquid cooling becoming a mandatory solution for high-density server environments [21][31]. Summary by Sections Liquid Cooling Technology - Liquid cooling is identified as a critical solution for data center heat dissipation, leveraging the high thermal conductivity and capacity of liquids compared to air [10][14]. - The technology is characterized by its ability to significantly reduce energy consumption and improve cooling efficiency, with liquid cooling systems capable of achieving a PUE (Power Usage Effectiveness) of below 1.2 [14][31]. Liquid Cooling Industry - The report notes that the value of liquid cooling will rise alongside chip upgrades, with a projected growth of over 20% for rack liquid cooling modules as chip power density increases [4]. - Domestic supply chains are expected to accelerate their entry into the market, particularly as NVIDIA opens its supplier list to include multiple vendors, allowing for greater competition and innovation [4]. Rubin Architecture Outlook - The report discusses the limitations of single-phase cold plates for the Rubin architecture, which has a thermal design power (TDP) of 2300W, necessitating the exploration of new liquid cooling solutions such as phase change cold plates and microchannel cold plates [4][21]. - Microchannel cold plates are anticipated to become a preferred solution due to their ability to handle higher power densities and their compatibility with future architectural developments [4]. Related Companies - The report suggests monitoring companies such as Yingweike, Shenling Environment, Gaolan Co., Hongsheng Co., Zhongke Shuguang, and Jieban Technology, as they are positioned to benefit from the increasing demand for efficient and energy-saving heat exchange solutions in data centers [5].

Core Insights - The recent trading disruption at CME Group highlights the critical issue of cooling systems in data centers, which can significantly impact global markets [1] Group 1: Incident Overview - On November 27, CME Group's trading platform experienced a multi-hour outage affecting trillions of dollars in contracts across various asset classes due to a cooling system failure at its Aurora, Illinois data center [1] - The cooling system failure was attributed to a malfunction in a chiller unit, which impacted multiple cooling units, leading to market turmoil [1] - CyrusOne, the operator of the data center, stated that the incident was caused by a "simple" physical failure, emphasizing the vulnerability of data centers to such issues [1] Group 2: Data Center Cooling Challenges - Data centers consume significantly more energy than typical office buildings, with energy consumption per square foot being 50 times higher, leading to substantial waste heat generation [5] - Traditional cooling methods using air are being increasingly replaced by liquid cooling systems due to the higher heat output from AI-related workloads, although these systems are more complex and costly [6] - The reliance on cooling systems raises concerns about water resource consumption, particularly in water-scarce regions, as data centers require substantial water for cooling [6] Group 3: Consequences of Overheating - Overheating in data centers can result in data loss, damage to expensive server components, and service interruptions, similar to recent outages experienced by other digital infrastructure providers [8] - Despite investments in redundancy measures, such as backup generators and additional cooling units, the complexity of systems can still lead to unavoidable disruptions [8] Group 4: CME Incident Analysis - The CME trading platform is located in a CyrusOne-operated facility in Aurora, which reportedly has advanced cooling technology and additional cooling units to mitigate failures [9] - Following the incident, CyrusOne deployed temporary cooling equipment while working to restore full cooling capacity [9] - The effectiveness of the redundant cooling systems during this incident remains unclear, raising questions about their reliability [9]

Summary of Conference Call Notes Company Overview - The company is one of the early players in the domestic NB chain liquid cooling plate OEM market and is in the process of acquiring Zhaoke to establish a comprehensive solution for materials and components, transitioning from OEM to direct supply to enhance core competitiveness [2][4][7]. Industry Insights - The liquid cooling plate is a critical component of liquid cooling systems, responsible for 95% of energy-saving tasks, requiring high thermal conductivity and reliability [2][9]. - The company has entered the supply chains of major clients such as ZTE and Huawei for polymer materials, and CATL and Hive Energy for thermal management products [5][16]. Financial Projections - Expected revenue for 2025, 2026, and 2027 is projected to be 1.29 billion, 2.51 billion, and 3.9 billion yuan, respectively, with year-on-year growth rates of 34.7%, 44.4%, and 55.5% [2][8]. - Net profit attributable to the parent company is expected to be 44 million, 150 million, and 250 million yuan for the same years, not considering the consolidation of Zhaoke [2][8]. Competitive Advantages - The company possesses unique competitive advantages in the liquid cooling plate OEM sector, including proprietary welding technology that ensures long-term stable operation of liquid cooling plates [4]. - The acquisition of Zhaoke will enhance the company's overall competitiveness by integrating thermal interface materials (TIM) with cooling plate solutions, leveraging Zhaoke's customer resources [7]. Product Development and Technology - The company has developed high-frequency welded liquid cooling plates compatible with CATL's Kirin and Shenxing batteries, which are key cooling components [3][16]. - The thermal management business includes products such as liquid cooling plates for new energy vehicles, with a focus on aluminum alloy materials and various manufacturing processes [14]. Market Trends and Future Outlook - The company anticipates rapid growth in its new energy liquid cooling plate business due to increased vehicle deliveries, which is expected to enhance capacity utilization and gross margin [3][16]. - The data center cooling module OEM business is projected to achieve revenues of 910 million and 2 billion yuan in 2026 and 2027, respectively, with a gross margin expected to remain around 20% [18]. Investment Recommendations - Despite market expectations of a tech stock adjustment in Q4, the company’s business is expected to continue progressing, with strong growth potential in the liquid cooling sector [20]. - Investors are advised to focus on high-growth, high-certainty sectors with continuous technological advantages, particularly in the liquid cooling segment [20].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of the stock [5]. Core Views - The company is a leader in the aluminum plate-fin heat exchanger market and is entering the liquid cooling sector for data centers, which opens up new growth opportunities [2][16]. - The company has a strong technical foundation and customer resources, which are expected to drive growth in both traditional and emerging markets [16][24]. - The demand for efficient and energy-saving heat exchange solutions is surging due to the rapid growth of AI server computing power, aligning the company's capabilities with industry trends [5]. Summary by Sections 1. Company Overview - Founded in 2000, the company focuses on manufacturing aluminum plate-fin heat exchangers for various industries, including air compressors and engineering machinery [2][16]. - The establishment of a joint venture with Suzhou Hexin Precision Technology marks the company's entry into the liquid cooling equipment sector, which is significant for business expansion [2][16]. 2. Traditional Markets - The company has diversified applications in various sectors, including engineering machinery, wind power, compressors, and diesel engines, with significant market potential in each [3][4]. - The engineering machinery market is projected to have a cooling system market space of approximately $14 billion in 2024, driven by the recovery in demand and the electrification trend [3][37]. - The wind power sector is expected to see a cooling system market space of around 14.7 billion yuan in 2024, benefiting from industry recovery and technological upgrades [4][41]. - The compressor market is estimated to reach approximately $9.8 billion in 2024, with traditional and AI data center demands driving growth [4][46]. - The diesel engine market for data centers is projected to reach 74.9 billion yuan by 2028, indicating substantial growth potential [4][59]. 3. Data Center Sector - Liquid cooling technology is essential for addressing heat dissipation challenges in data centers, offering advantages such as low energy consumption and high cooling efficiency [4][5]. - The market for liquid cooling systems is expected to grow significantly, with projections of 29.4 billion yuan for ASIC systems and 58.1 billion yuan for NVIDIA systems by 2026 [4]. - The company has established strong ties with key players in the industry, positioning itself favorably within the supply chain for liquid cooling components [4][5]. 4. Financial Projections - The company is expected to see a compound annual growth rate (CAGR) of approximately 13% in revenue from 2015 to 2024, with a notable recovery in profitability [24][26]. - The projected net profit for 2025-2027 is estimated at 1.0 billion, 2.0 billion, and 3.2 billion yuan, respectively, with corresponding dynamic P/E ratios of 49, 25, and 16 times [5].

Core Viewpoint - Ningbo Jingda (603088.SH) reported a significant increase in orders for heat exchange equipment by 62%, while also positioning itself in the robotics sector to create a second growth curve, despite overall performance being less than stellar [1]. Group 1: Financial Performance - For the first three quarters of 2025, the company achieved revenue of 549 million yuan and a net profit attributable to shareholders of 75.88 million yuan [1]. - The company's contract liabilities increased from 281 million yuan at the end of last year to 388 million yuan by the third quarter, indicating strong demand for orders [3]. - Inventory levels rose from 390 million yuan at the end of 2024 to 537 million yuan by the end of the third quarter, reflecting proactive preparations for downstream orders [3]. Group 2: Order Growth and Market Demand - The company experienced a 61.9% year-on-year increase in orders for heat exchange equipment, driven by strong demand in HVAC, refrigeration, and data center applications [2]. - Orders for high-speed precision presses showed a positive year-on-year growth of 23%, indicating a recovery in demand [2]. Group 3: Strategic Initiatives in Robotics - The company is actively entering the robotics sector, leveraging its technical advantages in micro-channel and precision mold components, which could open up a new growth space [4]. - A joint venture was established with Schola in Germany to integrate micro-channel equipment technology, enhancing the company's competitive edge [4]. - The acquisition of Wuxi Micro Research further extends the company's capabilities into precision molds and related components, aligning with its strategic transformation into a comprehensive service provider [4]. Group 4: Future Outlook - The combination of sustained order growth and strategic acquisitions is expected to lead to a recovery in the company's performance, initiating a new growth trend [6].

Core Viewpoint - The article emphasizes the critical importance of cooling technologies in data centers, particularly in the context of rising AI computing densities and the need for efficient heat management solutions [5][24]. Cooling Technology Evolution - The main cooling technologies are categorized into air cooling and liquid cooling, with air cooling further divided into natural and forced air cooling, while liquid cooling includes direct and indirect methods [6][13]. - The demand for innovative cooling solutions is driven by increasing power densities in data cabinets, necessitating significant improvements in heat transfer rates to ensure stable and efficient data center operations [8]. Air Cooling Technology - Forced air cooling is the most widely used method in data centers, utilizing fans to enhance airflow and cooling efficiency, while air conditioning and fresh air cooling are the primary techniques employed [9][11]. - Fresh air cooling systems, such as Distributed Airflow Cooling Systems (DACS) and Blowing and Suction Ventilation Cooling Systems (BDVCS), have shown rapid development and can significantly reduce cooling costs, especially in temperate or cold regions [12]. Liquid Cooling Technology - Liquid cooling utilizes high thermal conductivity liquids to replace air for heat dissipation, making it particularly suitable for high-density and high-power data center environments [13][23]. - The two main types of liquid cooling are indirect and direct liquid cooling, with indirect cooling involving heat exchange through conduits and direct cooling allowing liquids to contact heat-generating components directly [14][17]. Direct Liquid Cooling Methods - Single-phase immersion cooling involves submerging IT equipment in an insulating liquid, effectively transferring heat to an external cooling source [19]. - Two-phase immersion cooling utilizes a coolant with a boiling point lower than the operating temperature of the equipment, allowing for efficient heat absorption through phase change [20]. - Single-phase spray cooling sprays a cooling medium onto heat-generating surfaces, achieving high cooling efficiency but requiring careful design to prevent contamination [21]. Market Demand and Trends - The demand for liquid cooling solutions is increasing as computational power continues to rise, with single-phase cold plate cooling currently dominating the market [23]. - The latest advancements in computing technology, such as NVIDIA's GB200 module, highlight the limitations of traditional air cooling, which struggles to manage the heat generated by high-performance systems [24]. - Policies in China, such as the "East Data West Computing" strategy, aim to reduce energy usage in data centers, further driving the adoption of liquid cooling technologies [24][25]. Economic Benefits - In AI training scenarios, approximately 30% of energy costs are attributed to cooling, with liquid cooling systems significantly reducing Power Usage Effectiveness (PUE) compared to traditional methods [25]. - The implementation of liquid cooling can lead to substantial annual savings in electricity costs for medium to large data centers, reinforcing its position as a key development area in cooling technology [25].

Group 1: Company Acquisition and Business Development - The company is in the process of acquiring Dongguan Zhaoke Electronic Materials Technology Co., Ltd. to enhance its business layout in the polymer materials industry and expand its application scenarios in heat dissipation products. The acquisition involves complex cross-border merger issues, leading to a longer timeline for completion [2][3] - The company is actively supporting Dongguan Zhaoke's restructuring efforts and maintains close communication regarding the acquisition [3] - The data center cooling business is primarily conducted through its wholly-owned subsidiary, Shenzhen Chuangyuan Zhihuo Technology Co., Ltd., which focuses on special cooling modules and liquid cooling plates [4][5] Group 2: Financial and Market Performance - Shareholder Zhoushan Huineng reduced its holdings by 141,500 shares, accounting for 0.1119% of the company's total share capital, primarily due to the financial needs of former employees [6] - The company’s subsidiary, Suzhou Ruitai Technology Co., Ltd., produces high-frequency welded liquid cooling plates that are critical for the efficient operation of batteries in new energy vehicles, contributing to the company's stable growth [7] Group 3: Future Technology and Market Trends - The company emphasizes a market-oriented approach and independent research and development for technological innovation, focusing on next-generation liquid cooling technology and thermal interface materials [5][6] - The management is committed to continuous innovation in liquid cooling technology and its industrial application to enhance competitive capabilities and seize industry development opportunities [4][5]