Investment Rating - The report suggests that cold plate liquid cooling is expected to become the mainstream cooling solution for data centers, with significant potential in 3D printing for liquid cooling plate manufacturing [5]. Core Insights - Cold plate liquid cooling is anticipated to dominate the data center cooling market due to its higher efficiency compared to traditional air cooling, especially as GPU power design continues to increase [1][12]. - The liquid cooling market in China is projected to grow significantly, reaching 184 billion yuan in 2024 and 1.3 trillion yuan by 2029, with a compound annual growth rate (CAGR) of 48% [20][22]. - 3D printing technology is identified as the optimal manufacturing route for liquid cooling plates, offering advantages such as design freedom and cost-effectiveness compared to traditional machining methods [2][54]. - Microchannel liquid cooling plates are becoming a new trend, with 3D printing further enhancing their performance by allowing for complex designs that improve heat dissipation [3][66]. - The report highlights the challenges and breakthroughs in 3D printing of copper materials, which are crucial for effective heat transfer in liquid cooling applications [4][80]. Summary by Sections 1. Cold Plate Liquid Cooling as a Mainstream Solution - The cooling process in data centers can be categorized into air cooling and liquid cooling, with liquid cooling being more efficient due to its higher heat transfer capabilities [12][18]. - Cold plate liquid cooling, as an indirect cooling method, does not require direct contact with liquids, making it more operationally feasible and widely applicable [28][33]. 2. 3D Printing as the Optimal Manufacturing Technology - 3D printing offers unique advantages over traditional machining, such as the ability to create complex geometries and reduce production costs [2][54]. - The technology allows for continuous optimization of flow channel designs, which significantly impacts the cooling performance of liquid cooling plates [60][64]. 3. Emerging Trends in Microchannel Liquid Cooling - Microchannel liquid cooling plates are defined by their small channel diameters, which enhance heat transfer efficiency, and 3D printing is expected to play a crucial role in their production [3][67]. - The report notes that traditional manufacturing methods face limitations in producing microchannel structures, making 3D printing a more viable option [71][79]. 4. Investment Recommendations - The report recommends focusing on companies with strong technological capabilities in metal 3D printing, particularly those specializing in copper 3D printing [5][97]. - Specific companies highlighted include Nanfeng Co., Ltd., Plitec, and Huazhu High-Tech, which are actively engaged in the development and production of 3D printed liquid cooling plates [97].

Core Viewpoint - The article emphasizes that liquid cooling is becoming the mainstream cooling technology for intelligent computing centers due to the increasing power density of AI chips and the limitations of traditional air cooling methods. The global liquid cooling market is expected to experience significant growth, with a projected market size of over $10 billion by 2026 [3][46]. Investment Summary - The rise in AI chip power and cabinet density is driving the adoption of liquid cooling solutions, with leading overseas companies advancing full liquid cooling solutions [4][5]. - The liquid cooling market in North America is projected to reach $10 billion by 2026, driven by the demand for NVIDIA GPUs and the adoption of liquid cooling by CSP cloud manufacturers [5][57]. - In China, the liquid cooling market is expected to reach approximately 21.1 billion yuan by 2027, with a significant increase in penetration rates [52]. Liquid Cooling Technology - Liquid cooling offers advantages over air cooling, including faster temperature transfer, higher heat removal capacity, lower noise, and energy savings [6][12]. - The liquid cooling architecture can be divided into two parts: the room side (including primary and secondary equipment) and the ICT equipment side [8][30]. - The main types of liquid cooling include cold plate, immersion, and spray cooling, with cold plate technology currently being the most widely used [28][30]. Market Drivers - The increasing power density of computing chips necessitates liquid cooling as a primary solution for heat dissipation in intelligent computing centers [15][23]. - Stricter energy efficiency regulations for data centers, such as PUE requirements, are pushing the adoption of liquid cooling to reduce overall energy consumption [23][26]. - Major CSP cloud manufacturers are designing and implementing liquid cooling solutions, further driving market growth [26][27]. Component Analysis - The liquid cooling system consists of primary and secondary components, with significant value attributed to components like CDU, liquid cooling cabinets, and air conditioning systems [53][56]. - The value of liquid cooling components is expected to increase as the market grows, with specific components like CDU accounting for about 30% of the total value [56][57]. Future Outlook - The liquid cooling market is anticipated to grow rapidly, with projections indicating that by 2026, the global market could exceed $10 billion, driven by advancements in AI technology and increasing demand for efficient cooling solutions [46][57]. - The article suggests that companies with system-level understanding and specialized cooling capabilities will benefit the most from this industry development [4].

Core Insights - The report emphasizes the critical role of liquid cooling technology in data centers, particularly in AI-driven environments, as power density of computing chips continues to rise, surpassing the limits of traditional air cooling methods [1][6][8] - Liquid cooling is becoming mainstream due to its advantages such as rapid temperature transfer, high heat dissipation capacity, low noise, energy efficiency, and space-saving features [1][6][10] - The global market for liquid cooling is projected to exceed $10 billion by 2026, driven by increasing demand from AI chip manufacturers and data center operators [1][6][7] Group 1: Liquid Cooling Technology - Liquid cooling systems are categorized into two main sides: the room side (including primary and secondary components) and the ICT equipment side (such as cold plates and immersion systems) [1][12] - The current dominant technology is cold plate cooling, with Nvidia's GB200 series utilizing a fully liquid-cooled architecture [1][10] - Immersion cooling is seen as a long-term direction, offering lower PUE (<1.05) but at a higher cost compared to cold plate systems [1][6][10] Group 2: Market Size and Growth - The North American market for cold plate liquid cooling is valued at approximately $1,040 per kW, with expectations to reach $10 billion by 2026, driven by CSP cloud manufacturers and Nvidia's GPU demand [1][7] - In China, the unit value for cold plate liquid cooling is around 5,000 RMB per kW, with market sizes projected to be 11.3 billion RMB in 2026 and 23.8 billion RMB in 2027 [1][7] - The liquid cooling market is expected to accelerate due to stricter PUE regulations globally, with China mandating new large data centers to maintain a PUE ≤ 1.25 [1][25] Group 3: Industry Chain Analysis - The upstream of the liquid cooling industry consists of components like cooling towers and cold plates, while the midstream includes system integrators such as Vertiv and Envicool, and the downstream comprises AIDC service providers and operators [1][6][7] - Overseas and Taiwanese companies have a first-mover advantage in component manufacturing, but domestic manufacturers are gradually gaining ground due to cost-effectiveness and responsiveness [1][6][7] - The report highlights that established temperature control manufacturers are likely to benefit from the industry's growth, with a recommendation to focus on companies like Envicool [1][6][7] Group 4: Technological Developments - The evolution of cold plate technology is moving towards two-phase systems, which can enhance cooling capacity by over 150%, and micro-channel technology, which offers lower thermal resistance [1][6][40] - Companies like Microsoft are exploring microfluidic cooling technologies that significantly improve cooling efficiency compared to existing solutions [1][40] - Future trends indicate a shift towards high integration, low power consumption, and standardization in liquid cooling technologies [1][6][40]

Core Viewpoint - The liquid cooling market is expected to experience rapid growth due to advancements in AI chip power and density, with domestic manufacturers having opportunities to penetrate overseas markets, particularly through the entire liquid cooling industry chain, with a focus on Envicool (002837.SZ) [1] Group 1: Liquid Cooling Technology - In the AI era, data center heat density is increasing, making liquid cooling a mainstream cooling technology for intelligent computing centers [2] - Liquid cooling offers advantages over traditional air cooling, including faster temperature transfer, higher heat removal capacity, lower noise, energy savings, and space efficiency [2] - The current phase of liquid cooling primarily utilizes cold plate technology, with NVIDIA's latest commercial B-series GPUs adopting 100% liquid cooling architecture [2] Group 2: Market Potential - The global market for liquid cooling in data centers is projected to reach $10 billion by 2026, with North America expected to contribute significantly [3] - In North America, the unit value of cold plate liquid cooling is approximately $1,040/kW, with a potential market size of $3 billion driven by CSP cloud providers adopting liquid cooling solutions [3] - The domestic market's unit value for cold plate liquid cooling is around ¥5,000/kW, with expectations for accelerated penetration by 2025 and projected market sizes of ¥11.3 billion and ¥23.8 billion for 2026 and 2027, respectively [3] Group 3: Competitive Landscape - Traditional overseas cooling companies have early advantages, but domestic manufacturers can benefit from high cost-performance ratios, rapid response, customized services, and industrial capabilities [3][4] - Key players in the liquid cooling supply chain include component manufacturers, system solution providers, and end customers such as AIDC service providers and internet companies [3] - System integrators require comprehensive capabilities, with established companies like Vertiv and Envicool having advantages in temperature control stability [3] Group 4: Component Manufacturers - Component manufacturers face technical and customer barriers, with early partnerships with NVIDIA providing a competitive edge [4] - Domestic suppliers are expected to seize development opportunities as CSP cloud providers pursue higher cost-performance decoupled solutions [4]

Group 1: Investment Projects - The company has invested in a data center liquid cooling project through Hangyuan Photothermal (Beijing) Technology Co., Ltd., which utilizes advanced aerospace cooling technology, achieving a PUE of 1.1 and a WUE of less than 0.05 kg/kWh [2] - The company has invested 1,200,000 yuan in Chengdu Shuzhilian Technology Co., Ltd., holding a 0.915% stake as of August 31, 2025 [2] Group 2: Product Development - The company has developed a high-performance T1 AC SPD (surge protective device) for domestic photolithography machines, currently in the sample stage [2] - A new multifunctional protective device against lightning and electromagnetic pulses has been successfully validated in several defense projects [3] Group 3: Financial Performance and Shareholder Returns - Since its listing in 2015, the company has consistently prioritized investor interests, with a total cash dividend amounting to 9,878.11 million yuan over the years, representing 68.52% of the average net profit over the last three fiscal years [3] - The controlling shareholder has not reduced their stake since the company's listing and completed a share increase plan in August 2018, amounting to 1,000.22 million yuan [3] Group 4: Market Confidence and Management - The management expresses confidence in the company's future development despite market fluctuations, attributing any personal share reductions to individual financial needs [3]

Core Viewpoint - The development of AI is driving a significant increase in chip power consumption, leading to an accelerated shift from air cooling to liquid cooling solutions in data centers [5][6][10]. Group 1: Market Dynamics - The global liquid cooling market is expected to exceed 150 billion yuan, with a projected CAGR of 33.2% from 2025 to 2032, reaching approximately 211.4 billion USD (about 1517.7 billion yuan) by 2032 [3][38]. - The current liquid cooling market is primarily dominated by foreign and Taiwanese manufacturers, with a potential shift towards a more decentralized decision-making process as ODM manufacturers enter the market [3][35][36]. Group 2: Technological Advancements - The transition to liquid cooling is driven by the increasing power demands of AI chips, with NVIDIA's GB300 chip reaching a power consumption of 1400W, necessitating advanced cooling solutions [6][17]. - The liquid cooling architecture consists of a primary side (heat transfer) and a secondary side (IT equipment cooling), which are crucial for effective thermal management in high-density computing environments [11][30]. Group 3: Investment Opportunities - Investment opportunities are anticipated in the AIDC liquid cooling sector, particularly as domestic liquid cooling chains are expected to penetrate the market due to breakthroughs in domestic chip technology [2][3]. - Companies are encouraged to focus on segments benefiting from the rising capital expenditures in North America and the upgrade of GB300 liquid cooling solutions [3][40]. Group 4: Industry Trends - The demand for liquid cooling solutions is expected to grow significantly as data centers face stricter energy efficiency regulations globally, with PUE targets becoming increasingly stringent [8][9]. - The liquid cooling supply chain is currently characterized by a low concentration of market share, with no single company exceeding 15% market share, indicating a fragmented market landscape [31][34].

Group 1: Company Performance and Financials - The company has achieved continuous revenue and profit growth for 14 years, benefiting from diversified business operations and increased R&D investment [1] - The comprehensive gross margin for Q4 2024 and Q1 2025 has decreased, primarily due to a new accounting policy that shifted after-sales service costs to the cost side, impacting Q4 results [2] - The gross margin change for Q1 2025 is approximately -0.46% year-on-year, with normal fluctuations expected due to variations in product and customer mix [2] Group 2: Market and Business Environment - Trade tariffs between the US and China may raise costs for overseas customers, potentially suppressing demand for the company's energy storage business [1] - The high inventory levels at the end of 2024 and Q1 2025 are attributed to project-based sales with long confirmation cycles, expected to convert to revenue in the next 1-2 quarters [3] - The market for data center cooling in China is accelerating, driven by AI business demands, with further growth anticipated in 2025 [5] Group 3: Product and Technology Insights - Liquid cooling applications in computing equipment and data centers are driven by increased heat density and improved cooling system efficiency [6] - The procurement decision-makers for liquid cooling components vary, including chip manufacturers, server vendors, and cloud service providers [7] - The cold plate products for server liquid cooling present high barriers to entry due to design, manufacturing processes, and significant capital investment [8]