Core Viewpoint - Jinfu Technology is focusing on the development and manufacturing of external cold plate liquid cooling modules, primarily for high-power AI chips, with stable shipments in high-density computing cabinet deployments [1][3]. Group 1: Liquid Cooling Business Overview - The liquid cooling business is mainly conducted by the subsidiary Changshu Minglijia, with core products being external cold plate modules that achieve direct cooling of GPUs/CPUs through liquid circulation [1][3]. - The company does not participate in system integration but focuses on high-precision machining and welding, enhancing the value of individual projects and customer dependency [1][3]. Group 2: Technical Advantages - The company's liquid cooling solution features a compact design that is more space-efficient and adaptable compared to larger cooling solutions, enhancing deployment flexibility [2][4]. - The cold plates are constructed from copper and feature a sealed flow channel that improves heat exchange efficiency, suitable for mainstream B-series chip power levels [2][4]. Group 3: Market Position and Competitiveness - The company has established a strong competitive edge by deeply integrating into the Taiwanese high-end semiconductor and server supply chain, collaborating with key clients on advanced AI server cooling projects [2][6]. - The traditional metal processing business provides stability, while innovative material and structural projects offer flexibility, with liquid cooling being the primary growth focus [6]. Group 4: Production and Capacity - Current production capacity is fully utilized, with recent expansions completed and expected to commence operations before the Spring Festival, anticipating an increase in order volume [1][3]. - The company has achieved millions in scale shipments for cold plates and related products, with further growth expected post-expansion [1][3]. Group 5: Future Developments - The company is advancing microchannel liquid cooling technology to enhance heat exchange efficiency for next-generation chips, currently in the validation and sampling phase [5]. - Participation in the testing and sampling for the next-generation high-end AI platform, Rubin Ultra, has resulted in small trial production orders, with mass production dependent on upstream progress [5].

Core Viewpoint - The company has established a subsidiary focused on liquid cooling pump development and production for various applications, with initial projects already in small-scale supply [1]. Group 1: Company Developments - The company, Feilong Co., Ltd. (002536.SZ), announced the establishment of Anhui Hangyi Technology Co., Ltd. in Wuhu, Anhui, in July 2025 [1]. - The new subsidiary will concentrate on the research, production, and sales of liquid cooling pumps for data centers, renewable energy storage, and charging stations [1]. - The company aims to provide a full range of solutions covering power ranges from 16W to 22kW, focusing on core products for IDC liquid cooling circulation pumps [1]. Group 2: Production and Supply - Some projects have already commenced small-batch supply, indicating progress in production capabilities [1].

Summary of Tongfei Co., Ltd. Conference Call Industry Overview - The data center liquid cooling market is rapidly expanding, with projections indicating that by 2027, when NVIDIA's M172 ships 100,000 units, the market size will reach a trillion-level scale [2][3] - The liquid cooling market for data centers is expected to grow from less than 2 billion in 2024 to nearly 5 billion in 2025, and potentially reach 10 billion in 2026 [3] Company Performance and Market Position - Tongfei Co., Ltd. holds a leading position in the energy storage liquid cooling sector, with a market share of 40%-50%, and has established stable partnerships with major companies such as Sungrow, CATL, and BYD [2][5] - The company’s core products, CDU and manifold, account for approximately 30% of the value in liquid cooling systems, with the overall business system value potentially reaching 40% [2][3] - In the semiconductor equipment liquid cooling field, Tongfei is one of the few domestic manufacturers capable of high-precision temperature control, with products already applied in key clients' equipment [2][6] Financial Projections - The expected net profit attributable to the parent company for Tongfei is projected to reach 450 million by 2026, corresponding to a current market value of approximately 11 billion [2][7] - The company anticipates profits of 330 million and 450 million for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 35 and 25 [3][10] - The global market share for Tongfei's products in the data center liquid cooling segment is estimated at 10%, which could correspond to a target market value of around 15 billion [2][7] Competitive Advantages - Tongfei has demonstrated significant improvements in profitability through technological and cost advantages, allowing it to stand out in a competitive environment [5] - The company has expanded its client base to include international customers such as LG and Samsung, with the proportion of orders for overseas end applications increasing to 60%-70% [5] Future Outlook - The company is expected to enter a harvest period starting in 2025, with long-term growth prospects bolstered by the anticipated trillion-level markets for energy storage and data center liquid cooling [3][10] - The company is recommended as a key focus for investors due to its strong market position and growth potential in the liquid cooling sector [11] Technical Insights - The temperature control precision required for semiconductor equipment is significantly higher (±0.02°C) compared to that for data centers (±0.1°C) and energy storage [8] - Tongfei has successfully entered the semiconductor equipment market, with expectations of revenue reaching around 100 million by 2025 [9]

Core Insights - The company reported a revenue of 3.347 billion yuan for Q1 2025, representing an 18.28% year-on-year growth, and a net profit attributable to shareholders of 278 million yuan, which is a significant increase of 181.53% year-on-year [1] Expansion in Liquid Cooling Solutions - The company is strategically positioning itself in the liquid cooling market, focusing on both cold plate liquid cooling and immersion liquid cooling, making it one of the few companies that can provide a complete range of solutions including core components like aluminum cold plates and key materials such as fluorinated cooling liquids [2] - The company has entered into a strategic partnership with the Shaoguan municipal government to establish a manufacturing base for liquid cooling equipment and supercapacitor R&D in the Shaoguan Data Center cluster, the only national-level data center cluster in South China [2] - The company has also formed a strategic collaboration with Zhongji Xuchuang to build an intelligent computing center liquid cooling ecosystem, achieving both revenue and profit growth in Q1 [2] Investment in Robotics Sector - With support from the Wuhan municipal government, the company has led the establishment of "Optics Valley East Intelligence" in collaboration with Shanghai Zhiyuan, Beiwuyuan, and Lingchu Intelligent, marking its entry into the intelligent robotics sector [3] - The company signed multiple strategic cooperation agreements to create the largest and most advanced humanoid robot innovation center in Central China, in partnership with various local entities [3] - A procurement project agreement was signed with Hubei Science and Technology Investment Group, with a project budget not exceeding 70 million yuan, representing the company's first market orders in the robotics sector [3] Financial Projections - The company forecasts revenues of 13.968 billion yuan, 16.454 billion yuan, and 19.416 billion yuan for the years 2025 to 2027, with net profits attributable to shareholders projected at 1.321 billion yuan, 1.674 billion yuan, and 2.126 billion yuan respectively [4] - A target price of 10.96 yuan is set based on a 25x PE ratio for 2025, maintaining a "Buy-A" investment rating [4]