Core Insights - AI liquid cooling is an efficient heat dissipation solution specifically designed for artificial intelligence (AI) devices, leveraging the superior thermal conductivity and high specific heat capacity of liquid mediums [3][6] - The AI liquid cooling market in China is experiencing rapid growth, with the market size expected to reach 184 billion yuan in 2024, a year-on-year increase of 66.1% from 2023, and projected to grow to approximately 1,300 billion yuan by 2029 [7][12] - The industry is witnessing a shift from traditional air cooling to liquid cooling due to its higher cooling efficiency, increased computing density, and reduced system power consumption [6][10] AI Liquid Cooling Industry Definition and Classification - Liquid cooling refers to the use of liquid as a cooling medium, which cools the process refrigerant liquid to around 17-45°C through CDU equipment, transferring heat generated by servers [1][3] - Liquid cooling can be classified into indirect contact and direct contact types, with direct contact including spray cooling and immersion cooling [3][5] AI Liquid Cooling Industry Development Status - The AI liquid cooling server market is projected to reach approximately 201 billion yuan in 2024, with expectations of 294 billion yuan in 2025 and 430 billion yuan by 2027 [6][7] - The demand for high-density computing facilities in AI service platforms is driving the growth of the liquid cooling market [6][10] AI Liquid Cooling Industry Chain - The upstream of the AI liquid cooling industry includes components such as cooling towers, cooling liquids, CDU, chillers, and electromagnetic valves [8][9] - The midstream involves AI liquid cooling solution providers and server OEM/ODM manufacturers, while the downstream applications span various sectors including internet, finance, data centers, AI computing, and industrial manufacturing [8][9] AI Liquid Cooling Industry Development History - The development of liquid cooling aims to save electricity consumption, with significant applications across multiple industries since its inception [10][11] AI Liquid Cooling Industry Competitive Landscape - Numerous companies in temperature control and thermal management are entering the liquid cooling sector, achieving notable results, including major players like Invid, High Cloud, and others [12] AI Liquid Cooling Industry Development Trends - Liquid cooling technology is rapidly integrating with AI and cloud computing, becoming a necessary solution as traditional air cooling reaches its physical limits [12] - The push for carbon neutrality and national policies in China are driving the adoption of liquid cooling, with expectations that over 50% of data center projects will utilize liquid cooling technology by 2025 [12]

Investment Rating - The industry investment rating is "Positive" [4][19] Core Views - The telecommunications industry is benefiting from the ongoing Digital China strategy, leading to stable growth in overall business for operators, with innovative services experiencing higher growth rates and increasing proportions [2] - The AI computing power sector continues to thrive globally, with significant investments from major companies, indicating a rapid growth period for domestic computing power targets [4] - New growth drivers such as satellite internet are injecting new momentum into the industry, providing additional performance elasticity [4] Summary by Relevant Sections Telecom Operators - China Mobile is expected to report Q3 revenue of CNY 245.1 billion to CNY 246 billion, a year-on-year growth of 0.2% to 0.5%, with net profit of CNY 32.1 billion to CNY 32.4 billion, a growth of 4.6% to 5.6% [2][16] - China Telecom is projected to achieve Q3 revenue of CNY 127.2 billion to CNY 128.5 billion, a growth of 1% to 2%, with net profit of CNY 7.75 billion to CNY 8.05 billion, a growth of 3.5% to 7.5% [2][16] - China Unicom's Q3 revenue is expected to be CNY 93.7 billion to CNY 94.6 billion, with a growth of 1% to 2%, and net profit of CNY 2.41 billion to CNY 2.49 billion, a growth of 4.8% to 8.3% [3][16] - China Tower is anticipated to report Q3 revenue of CNY 24.9 billion to CNY 25.2 billion, a growth of 2.9% to 4.1%, with net profit of CNY 2.97 billion to CNY 3.05 billion, a growth of 5.2% to 8% [3][16] AI and Network Connectivity - The AI optical module sector is experiencing significant growth, with companies like Zhongji Xuchuang expected to report Q3 revenue of CNY 8.9 billion to CNY 9.6 billion, a growth of 37% to 47%, and net profit of CNY 2.9 billion to CNY 3.2 billion, a growth of 108% to 130% [4][16] - Tianfu Communication is projected to achieve Q3 revenue of CNY 1.8 billion to CNY 2.1 billion, a growth of 115% to 150%, with net profit of CNY 650 million to CNY 750 million, a growth of 102% to 133% [5][16] AI Applications and Data Centers - AI server demand is rapidly increasing, with ZTE expected to report Q3 revenue of CNY 31 billion to CNY 32 billion, a growth of 12% to 16%, and net profit of CNY 1.95 billion to CNY 2.1 billion, a decrease of 3% to 10% [7][16] - The AIDC sector is also growing, with Keda Data expected to report Q3 revenue of CNY 24 billion to CNY 27 billion, a growth of 44% to 62%, and net profit of CNY 180 million to CNY 230 million, a growth of 1347% to 1748% [8][16] Satellite Internet and Military Communication - The military communication sector is expected to see increased investment due to regional tensions, with companies like Zhenlei Technology projected to report Q3 revenue of CNY 150 million to CNY 160 million, a growth of 125% to 141%, and net profit of CNY 45 million to CNY 50 million, a growth of 409% to 466% [10][16]