Investment Rating - The investment rating for the company is "Outperform" (Maintain) [3] Core Views - The company is a leader in domestic immersion liquid cooling technology and is actively expanding into overseas and cold plate liquid cooling markets. The expected growth in the liquid cooling data center market is driven by increasing computing power demands and the associated rise in chip power consumption [4][3] - The company has a significant market share of 61.3% in the liquid cooling infrastructure sector as of 2023, maintaining its position as the industry leader for three consecutive years [4] - The financial forecasts for the company indicate a recovery in profitability, with projected net profits for 2025, 2026, and 2027 expected to be 105 million, 150 million, and 195 million yuan respectively [3][5] Financial Summary - In Q1 2025, the company reported revenue of 11.67 million yuan, a decrease of 1.37%, and a net loss of 31.37 million yuan, a decline of 329.66% [3] - For the year 2024, the company achieved revenue of 506 million yuan, down 22.15%, and a net profit of 61.42 million yuan, down 41.21% [3] - The projected revenue for 2025 is 856 million yuan, with a year-over-year growth of 69.0%, and the projected net profit is 105 million yuan, reflecting a growth of 71.1% [5][7] - The company's gross margin is expected to be 28.1% in 2025, with a net margin of 12.3% [5][8] Market Outlook - The global data center liquid cooling adoption rate is anticipated to rise from 14% in 2024 to 26% in 2025, indicating a growing market opportunity for the company [4] - The liquid cooling server market in China is projected to grow at a compound annual growth rate (CAGR) of 45.8% from 2023 to 2028, reaching a market size of 10.2 billion USD by 2028 [4]