Core Viewpoint - The company Lingyi Zhizao (002600.SZ) announced its plan to acquire a 35% stake in Dongguan Liminda Electronics Technology Co., Ltd. for 875 million yuan, despite a high premium valuation of over 34 times its net asset value, aiming to enhance its capabilities in the AI server liquid cooling market [2][6]. Group 1: Acquisition Details - The acquisition price of 875 million yuan is based on a valuation of 2.51 billion yuan for Liminda, which has a net asset value of only 71.27 million yuan as of September 2025, resulting in a premium rate exceeding 34 times [2][5]. - Lingyi Zhizao aims to gain control over Liminda by acquiring 35% of its shares and plans to secure voting rights for an additional 17.78% stake, allowing it to control 52.78% of the voting rights [5][6]. - Liminda, established in June 2009, specializes in thermal management products for enterprise-level servers and has established long-term relationships with major clients in the overseas computing industry [6][7]. Group 2: Business Strategy and Performance - Lingyi Zhizao is actively entering the AI server liquid cooling sector, which has gained significant attention since early 2025, and is also expanding its automotive and low-altitude economy sectors [3][4]. - The company has demonstrated strong profitability, with net profits exceeding 1 billion yuan annually since 2019, and reported a net profit of 1.941 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 37.66% [3][8]. - Lingyi Zhizao's stock price has seen substantial growth, nearly doubling from approximately 8 yuan per share at the beginning of 2025 to a closing price of 15.95 yuan on December 22, 2025 [8].

Core Viewpoint - Dongwu Securities report highlights that Invec is a leader in temperature control systems, with AI computing server liquid cooling creating a new growth driver. The company's main business operates steadily, and its product matrix is comprehensive [1] Financial Performance - In the first three quarters of 2025, the company achieved revenue of 4.026 billion yuan, a year-on-year increase of 40.19% [1] - The net profit attributable to the parent company reached 399 million yuan, reflecting a year-on-year growth of 13.13% [1] Market Position and Partnerships - The company has established itself as a stable partner for leading enterprises such as Huawei, ZTE, Tencent, and Alibaba due to its strong technological foundation [1] - As a domestic leader in temperature control systems, the company is making significant progress in introducing overseas computing power chains, leading the domestic market [1] Growth Potential - The continuous iteration of computing servers is expected to drive the expansion of the liquid cooling market, allowing the company to gradually realize its performance potential [1] - The report initiates coverage with a "buy" rating for the company, indicating positive future expectations [1]

Investment Rating - The report assigns a "Buy" rating for the company, Invech, as a leading player in the temperature control system market [4]. Core Insights - Invech has a robust main business with a comprehensive product matrix, focusing on energy-saving temperature control solutions for various applications, including data centers and transportation [2][22]. - The server liquid cooling market is in its early stages but is expected to grow into a trillion-dollar market, driven by the explosive demand for AI computing power [3][38]. - The company has developed a mature liquid cooling solution and is actively expanding its customer base in North America, positioning itself to capture market share in the liquid cooling system components [4][20]. Summary by Sections 1. Company Overview - Invech, established in 2005 and listed in 2016, specializes in energy-saving temperature control solutions across four core product lines: data center cooling, cabinet cooling, bus air conditioning, and rail transit air conditioning [2][14]. - The company has established stable partnerships with major clients such as Huawei, Tencent, and Alibaba, achieving a revenue of 4.026 billion yuan in the first three quarters of 2025, a year-on-year increase of 40.19% [2][23]. 2. Market Potential - The global server liquid cooling market is projected to reach 80 billion yuan by 2026, with significant contributions from ASIC and NVIDIA NVL72 related cooling demands [3][42]. - Liquid cooling technology is becoming essential due to the increasing power density of servers, transitioning from an optional to a necessary solution for data centers [3][50]. 3. Product and Technology Capabilities - Invech has developed a comprehensive liquid cooling solution, including core components like cold plates and CDU, and is well-positioned to meet the challenges of high-power chip cooling [4][20]. - The company is actively pursuing opportunities in the North American market and has entered NVIDIA's supplier list, enhancing its potential to capture market share in the ASIC server segment [4][20]. 4. Financial Projections - The company is expected to achieve net profits of 6.5 billion yuan, 10 billion yuan, and 14.2 billion yuan from 2025 to 2027, with corresponding dynamic P/E ratios of 124x, 80x, and 57x [4][8]. - Revenue is projected to grow from 3.529 billion yuan in 2023 to 12.402 billion yuan by 2027, reflecting a compound annual growth rate (CAGR) of 34.54% [4][8].