Summary of Conference Call Notes Company Overview - The company is one of the early players in the domestic NB chain liquid cooling plate OEM market and is in the process of acquiring Zhaoke to establish a comprehensive solution for materials and components, transitioning from OEM to direct supply to enhance core competitiveness [2][4][7]. Industry Insights - The liquid cooling plate is a critical component of liquid cooling systems, responsible for 95% of energy-saving tasks, requiring high thermal conductivity and reliability [2][9]. - The company has entered the supply chains of major clients such as ZTE and Huawei for polymer materials, and CATL and Hive Energy for thermal management products [5][16]. Financial Projections - Expected revenue for 2025, 2026, and 2027 is projected to be 1.29 billion, 2.51 billion, and 3.9 billion yuan, respectively, with year-on-year growth rates of 34.7%, 44.4%, and 55.5% [2][8]. - Net profit attributable to the parent company is expected to be 44 million, 150 million, and 250 million yuan for the same years, not considering the consolidation of Zhaoke [2][8]. Competitive Advantages - The company possesses unique competitive advantages in the liquid cooling plate OEM sector, including proprietary welding technology that ensures long-term stable operation of liquid cooling plates [4]. - The acquisition of Zhaoke will enhance the company's overall competitiveness by integrating thermal interface materials (TIM) with cooling plate solutions, leveraging Zhaoke's customer resources [7]. Product Development and Technology - The company has developed high-frequency welded liquid cooling plates compatible with CATL's Kirin and Shenxing batteries, which are key cooling components [3][16]. - The thermal management business includes products such as liquid cooling plates for new energy vehicles, with a focus on aluminum alloy materials and various manufacturing processes [14]. Market Trends and Future Outlook - The company anticipates rapid growth in its new energy liquid cooling plate business due to increased vehicle deliveries, which is expected to enhance capacity utilization and gross margin [3][16]. - The data center cooling module OEM business is projected to achieve revenues of 910 million and 2 billion yuan in 2026 and 2027, respectively, with a gross margin expected to remain around 20% [18]. Investment Recommendations - Despite market expectations of a tech stock adjustment in Q4, the company’s business is expected to continue progressing, with strong growth potential in the liquid cooling sector [20]. - Investors are advised to focus on high-growth, high-certainty sectors with continuous technological advantages, particularly in the liquid cooling segment [20].

Summary of Zhongshi Technology Conference Call Industry and Company Overview - **Company**: Zhongshi Technology - **Industry**: Consumer Electronics, Digital Infrastructure, Intelligent Transportation, Clean Energy Key Points and Arguments 1. **Sales Growth and Client Base**: Zhongshi Technology benefited from the launch of new products by major clients in the consumer electronics sector, leading to a significant increase in shipment volumes in Q3 and October. Key clients include North American giants, Samsung, and domestic smartphone manufacturers, with expansions into wearable devices, gaming consoles, and drones, including partnerships with Microsoft, Google, Amazon, and DJI [2][3][6] 2. **Digital Infrastructure Development**: The company collaborates with leading clients like Ericsson, Nokia, Huawei, and ZTE in the digital infrastructure sector, focusing on 5G/6G communication, industrial internet, satellite internet, and AI-driven data and computing centers. Future growth in this area is anticipated [2][7] 3. **Intelligent Transportation Sector**: Zhongshi Technology supplies automotive-grade thermal management materials to companies like BYD, BAIC, and XPeng Motors, and collaborates with top-tier automotive parts manufacturers to provide customized thermal solutions [2][8] 4. **Financial Performance**: In Q3 2025, sales and R&D expenses decreased by over 8 million and 7 million respectively, while gross margin and revenue increased, attributed to cost structure optimization and improved operational efficiency [2][11][12] 5. **Product Offerings**: The company’s main products include: - Graphite films for consumer electronics - Thermal interface materials (TIM) for heat dissipation - High-efficiency cooling modules for high-performance applications - Electromagnetic shielding materials for communication devices - Adhesives for electronic device assembly [10][11] 6. **Light Module Business**: Zhongshi Technology collaborates with Finisar to provide thermal solutions for optical modules, with expectations of significant revenue growth as Finisar's 1.6T module market share increases. Total revenue from optical modules reached several million in the first three quarters [2][18][20] 7. **Cost Management**: The decrease in sales expenses is partly due to the sale of a subsidiary in 2024, which previously accounted for 95% of its expenses. Additionally, the company optimized its sales strategy, focusing on major clients, which reduced operational costs [13] 8. **Production Capacity**: The company has multiple production bases in China and has established a facility in Thailand, with a total planned capacity of 3 to 5 billion yuan. Current capacity utilization meets demand, with future investments aligned with market needs [17] 9. **Future Outlook**: The company anticipates continued growth in the optical module market and expects to leverage its technological advantages in liquid cooling solutions for servers. The demand for liquid cooling is expected to rise significantly, driven by various hardware manufacturers and computing centers [24][25] 10. **Q4 Expectations**: The company expects Q4 performance to remain strong, driven by the successful launch of new products by major clients, although a slight decrease in sequential growth compared to Q3 is anticipated [23] Additional Important Information - **R&D Focus**: The company maintains a strong emphasis on R&D, with innovative solutions in advanced thermal management materials, which are crucial for maintaining competitive advantages in various sectors [4][6] - **Market Trends**: The overall market for optical modules is expected to experience significant growth, with increased demand from chip manufacturers and server companies, indicating a favorable environment for Zhongshi Technology's offerings [21]

报告导读： 高密度算力中心不断发展，芯片层面的冷却技术愈发成为热管理系统的核心瓶 颈，我们认为导热界面材料（ TIM ）的需求将快速增长。 投资观点。 在面对人工智能和更新芯片设计不断增长的需求，当前的冷却技术将在短短几年内限制产业的不断发展。近日，微软宣布已成功开发出一种芯片 内的微流体（ Microfluidic ）冷却系统，可以对模拟团队会议核心服务的服务器进行有效冷却，散热效果比冷板好 3 倍。这个技术方案是将微小的通道直接 蚀刻在硅片的背面，形成凹槽，冷却液直接流到芯片上，实现更有效的散热。我们认为 AI 智算中心的热管理系统的核心瓶颈正不断聚焦于芯片层面，建议关 注 TIM1 、 TIM1.5 、 TIM2 等导热界面材料的需求增长，以及芯片内微流体技术的不断演进 。 AI 发展，热管理对完整散热系统的要求越来越高。 伴随 AI 大模型、 AI 应用的不断发展，其算力底座数据中心面临全新挑战以满足智算发展需求，数据中心 架构正加速向高密度、智能化和可持续方向演进。根据 TrendForce 表示， AI 服务器采用的 GPU 和 ASIC 芯片功耗大幅提升，以 NVIDIA GB200/GB300 ...