Investment Rating - The report maintains a "Buy" rating for the company with a target price of 22.95 CNY based on a 17x P/E ratio for 2025 [3][7]. Core Views - The company has shown improvement in operating cash flow and has a promising outlook in the liquid cooling market, particularly in air conditioning and energy storage applications [11]. - The company has adjusted its earnings per share (EPS) forecasts for 2025-2027 to 1.35, 1.77, and 2.18 CNY respectively, reflecting a strategic response to current industry conditions [3]. Financial Performance - The company’s revenue is projected to grow from 9,291 million CNY in 2023 to 16,469 million CNY in 2027, with a compound annual growth rate (CAGR) of approximately 12.7% [5]. - Operating profit is expected to increase from 1,013 million CNY in 2023 to 2,382 million CNY in 2027, indicating a strong growth trajectory [5]. - The net profit attributable to the parent company is forecasted to rise from 899 million CNY in 2023 to 2,179 million CNY in 2027, with a notable growth rate of 35.1% in 2024 [5]. - The company’s gross margin is expected to improve from 15.9% in 2023 to 18.1% in 2027, while the net margin is projected to increase from 9.7% to 13.2% over the same period [5]. Market Position and Strategy - The company is focusing on product innovation and has made significant advancements in research and development, including obtaining new patents and government subsidies [11]. - The strategic emphasis on high-strength, corrosion-resistant composite cooling plates and other innovative products positions the company well in emerging markets [11]. - The report highlights the potential of liquid cooling solutions in data centers and energy storage, which are expected to positively impact the company's processing fees in the future [11].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company's H1 2025 performance met expectations, with revenue of 5.964 billion yuan (up 20.9% year-on-year) and a net profit of 570 million yuan (up 2.2% year-on-year) [6] - The company is focusing on optimizing its product structure and responding to industry changes by developing strategic new products and enhancing market adaptability [6] - The company plans to expand its production capacity in Chongqing, which is expected to increase output and reduce costs [6] - The report projects net profits for 2025-2027 to be 1.33 billion yuan, 1.645 billion yuan, and 2.008 billion yuan respectively, with corresponding PE ratios of 14, 11, and 9 [6] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 12.163 billion yuan, with a year-on-year growth rate of 11.8% [5] - The company’s gross profit margin is expected to be 15.9% in 2025, with a return on equity (ROE) of 19.5% [5] - The company’s net profit for 2025 is projected to be 1.328 billion yuan, reflecting a 9.0% increase compared to the previous year [5]