Core Viewpoint - The report from CITIC Securities suggests that 2025 will be the "explosion year" for server liquid cooling, with new solutions benefiting domestic manufacturers [1] Group 1: Market Trends - The market anticipates a significant shipment of GB300 cabinets in Q4, marking a critical time for the ramp-up of liquid cooling components [1] - Previously, liquid cooling component manufacturers for GB200 servers were primarily concentrated in Taiwanese companies such as AVC, Coolermaster, and Delta, but participation from mainland manufacturers in GB300 has significantly increased [1] Group 2: Industry Dynamics - Some Taiwanese companies are now focusing on mainland manufacturers, with liquid cooling component suppliers actively submitting samples, which is favorable for the domestic liquid cooling industry chain [1]

AI Computing Power - AI computing power is entering a new stage, with a focus on structural changes by 2026, including a shift in demand from training to inference computing [2] - Capital expenditure (Capex) investment structure shows stability among leading cloud providers, with second-tier cloud providers joining the market [2] - The architecture of computing networks is evolving, with scale-up and scale-across strategies contributing to increased network demand [2] - Continuous upgrades in GPU technology and the rise of ASIC chips are accelerating the growth of domestic computing power [2] Optical Interconnection - The industry is facing a supply-demand imbalance, particularly in optical modules, optical chips, and Faraday rotators [3] - Key technological trends include 1.6T, silicon photonics, OCS, and CPO, with a focus on resolving supply-demand conflicts and the impact of technological upgrades on supplier dynamics and profitability by 2026 [3] - Major beneficiaries of technological upgrades in the optical module sector include leading companies like Zhongji Xuchuang and Xinyi Technology [3] - Supply constraints are noted for optical chip suppliers such as Yuanjie Technology and Shijia Photonics [3] Liquid Cooling - The server liquid cooling market is at a historic turning point, with significant demand in North America, Southeast Asia, and China, particularly in the North American computing market [4] - Current suppliers of liquid cooling solutions are primarily from Taiwan and the United States, with potential for domestic manufacturers to achieve breakthroughs [4] - Key focus on Invec [4] AIDC (Artificial Intelligence Data Center) - The IDC industry is expected to maintain an expansion trend driven by AI development, with an increase in AIDC penetration rates by 2026 [5] - Core focus areas include the international expansion of third-party IDC companies and the optimization of industry competition dynamics [5] - New REITs are anticipated to be released, enhancing companies' financing capabilities [5] Supernode Integrated Equipment - The supernode network requires high standards for complete cabinets, circuit boards, and connection chips, with strong supply chain dependencies [6] - Focus on connection chip suppliers, including switching chips and interface chips, as well as Ethernet switch manufacturers [6] Commercial Aerospace - The low Earth orbit satellite sector is entering an accelerated growth phase, supported by national policies and a strong upward trend in the commercial aerospace industry [7] - The successful launch of the Zhuque-3 rocket marks the beginning of a new era for China's commercial aerospace sector, which is expected to experience rapid growth [7] - Key variables include the success rate of various rocket payloads and capacity planning, with attention to satellite constellation bidding orders once capacity stabilizes [7]

Group 1 - The article highlights the company's focus on server liquid cooling, semiconductor precision components, and the increase in shareholding by major stakeholders, indicating a strong client base that includes Huawei and Tesla, with expectations for performance to exceed forecasts [1] - The portable energy storage industry is entering a second growth phase, with the company's LFP battery new products set to launch, leading to a doubling of sales in the European market and a visible operational turning point following inventory destocking [1]

Core Insights - Meilixin Technology and Juluan Innovation Green Energy Co., Ltd. have signed a cooperation agreement to establish a joint venture focused on the server liquid cooling key component market [1] - The joint venture aims to provide efficient water cooling plate design and related liquid cooling server kit development and mass production services for high-quality domestic and international clients [1] - This collaboration will leverage both parties' expertise in AI server liquid cooling systems, thermal design and application scenarios, precision processing, large-scale production, and quality assurance to create a platform for high-power GPU and AI server liquid cooling key components [1]

Group 1 - The company has established close partnerships with over 40 leading enterprises in the server liquid cooling sector, including HP, Delta, and others [2] - The company confirmed that Super Fusion is an important client in the liquid cooling server field [2]

Core Viewpoint - The company has secured orders for AI server immersion liquid cooling cabinets from Taiwanese manufacturers, with deliveries expected to begin in November 2025, indicating a strong demand for AI solutions in the market [1][2] Group 1: Company Developments - The company's subsidiary, Precision Industries, has completed technical validation for immersion liquid cooling cabinets and is set to design, develop, and produce these products according to customer specifications [1] - A joint venture has been established with Forman Technology to expand the AI server liquid cooling system business, with a production facility in Jiaxing already capable of small-batch production [1] - The company has also passed technical validation for a splitter from another Taiwanese AI server liquid cooling system manufacturer, with the first batch of products expected to be delivered by the end of December 2025 [1] Group 2: Industry Trends - The global AI server liquid cooling system market is anticipated to experience rapid growth due to increasing demand for AI solutions across various industries [2] - The company has established a strong global production capacity in the automotive sector, particularly in battery box structural components and liquid cooling plates, ensuring high-performance and reliable production [2] - The company is actively exploring new growth avenues in emerging fields such as AI, robotics, low-altitude economy, and smart mobility, supported by a long-term partnership with leading Taiwanese server manufacturers [2]

Market Overview - The market experienced a quick pullback in the afternoon on October 30, with the Shanghai Composite Index closing down 0.73% at 3986.90 points. The total trading volume in the Shanghai and Shenzhen markets reached 24.217 trillion yuan, an increase of 165.6 billion yuan compared to Wednesday [1]. Competition Insights - The 76th session of the simulated stock trading competition, hosted by the Daily Economic News App, began on October 20, with several participants achieving impressive results, including two participants with returns exceeding 60%. The competition runs from October 20 to October 31, with a simulated capital of 500,000 yuan [1]. Prize Structure - The pre-tax cash rewards for each competition session are as follows: 688 yuan for the 1st place, 188 yuan for the 2nd to 4th places, and 88 yuan for the 5th to 10th places. Additionally, there is a shared reward of 500 yuan for all other participants with positive returns. Monthly leaderboard prizes include 888 yuan for the 1st place and varying amounts for subsequent ranks [3]. Sector Opportunities - Participants in the competition have expressed optimism about sectors such as brokerage firms, server liquid cooling, humanoid robots, and rare metals, indicating potential investment opportunities in these areas [4]. Brokerage Sector Analysis - Some experts believe that certain companies within the brokerage sector are undervalued, with valuations potentially equivalent to the Shanghai Composite Index at around 3000 points, suggesting an arbitrage opportunity [7].

Core Insights - The company Feilong Co., Ltd. (002536) has reported active engagement in the server liquid cooling thermal management product sector, with over 40 clients and more than 60 ongoing projects [1] Group 1 - The company has established connections with notable clients including HP, Shunling Environment (301018), Yaho Electronics, Delta, Jinyun, Weidi, Haiwu, Shenzhen Xingqihong, Invech (002837), Wanbang Digital, and Shuguang Digital Innovation [1] - Some projects have already begun small-scale supply, indicating progress in product deployment [1]

Market Overview - The three major indices experienced significant gains on September 11, 2025, with the Shanghai Composite Index rising by 1.65% to close at 3875.31 points, the Shenzhen Component Index increasing by 3.36% to 12979.89 points, and the ChiNext Index surging by 5.15% to 3053.75 points. The total trading volume in both markets reached 243.74 billion yuan, an increase of approximately 45.95 billion yuan compared to the previous trading day [1][2]. Sector Performance - The communication, electronics, and computer sectors saw notable increases, with the communication sector rising by 7.4%, electronics by 6.0%, and computers by 3.7%. Conversely, the textile and apparel, oil and petrochemicals, and social services sectors lagged behind [3][5]. Concept Themes - Key concept themes that performed well included Co-Packaged Optics (CPO) with a rise of 6.6%, Copper Cable High-Speed Connection at 5.9%, and AI PCs at 5.2%. In contrast, sectors such as dairy, football concepts, and horse racing concepts experienced declines [6]. Industry Insights - The AI industry chain maintained high prosperity in the first half of 2025, driven by strong global market collaboration and domestic demand. Key developments included increased investments in computing infrastructure by overseas cloud vendors and accelerated AI deployment by domestic operators and data center companies. This trend is expected to continue, with significant growth in demand for hardware such as high-speed optical modules and AI servers [7].

Summary of Conference Call on Su Lian Co., Ltd. and UQD Market Company and Industry Overview - The conference call discusses Su Lian Co., Ltd. and the server liquid cooling UQD (Quick Connect Disconnector) market, which is projected to reach a market size of 20 billion RMB, with potential for even higher growth [2][4]. Core Insights and Arguments - The UQD market is expected to account for approximately 10% of the total server liquid cooling market value, translating to around 20 billion RMB by 2030 [4]. - Compared to the automotive thermal management market, the UQD market could potentially reach half the size of the global automotive thermal management piping and connector market [2][4]. - UQD technology has high barriers to entry, requiring strict no-leak technology, optimized flow rates, pressure drop management, and intuitive visual identification and automatic connection features [5]. - Domestic companies are rapidly developing in the server liquid cooling UQD sector, but the competitive landscape is still forming, with no long-established players like Parker Hannifin or Stäubli [6]. Su Lian Co., Ltd. Advantages - Su Lian Co., Ltd. has a strong foundation in the nylon piping market and extensive customer relationships, particularly in the new energy vehicle thermal management sector [2][7]. - The company has developed capabilities in injection mold design and product testing, which are crucial for entering the server liquid cooling UQD market [7]. - Su Lian Co., Ltd. has a comprehensive customer base in the new energy vehicle sector, including major players like Changan, BYD, and CATL, providing solutions across battery packs, chassis, motors, and air conditioning [8]. Upstream Industry Chain Development - The company has enhanced its precision mold processing and equipment design capabilities, which significantly benefit high-end new energy vehicles and complex server liquid cooling systems [9]. Recent Developments - Su Lian Co., Ltd. has established a subsidiary, Su Lian Intelligent Control, to expand into the intelligent computing market, aiming for multiple growth trajectories beyond the UQD market [3][10]. Market Outlook and Risks - The liquid cooling industry presents numerous opportunities, especially for companies transitioning from new energy vehicle thermal management systems [11]. - Risks include the potential underperformance of UQD development and significant increases in raw material prices [11].