Core Viewpoint - The company reported strong revenue growth and stable profit margins in its 2025 H1 financial results, indicating resilience in its core business and potential for future growth in overseas markets [1][2][4]. Financial Performance - In 2025 H1, the company achieved revenue of 2.57 billion yuan, a year-on-year increase of 50.3%, and a net profit attributable to shareholders of 216 million yuan, up 17.5% year-on-year [1][2]. - For Q2 2025, the company recorded revenue of 1.64 billion yuan, representing a 69.7% year-on-year growth, with a net profit of 168 million yuan, which is a 38.0% increase year-on-year [2]. Product Performance - The revenue from data center temperature control products reached 1.35 billion yuan in 2025 H1, growing by 57.9%, while outdoor cabinet temperature control products generated 930 million yuan, up 32.0% [3]. - The revenue from energy storage temperature control products was 800 million yuan, reflecting a 35% year-on-year growth, indicating strong performance despite trade policy impacts [3]. Inventory and Contract Liabilities - As of the end of 2025 H1, the company's inventory reached 1.24 billion yuan, a 79% year-on-year increase, driven by unverified project shipments and increased contract performance costs [3]. - Contract liabilities amounted to 400 million yuan, up 109% year-on-year, indicating a rise in customer prepayments [3]. Competitive Advantage - The company possesses a rare full-chain capability in liquid cooling products, covering everything from manufacturing to service delivery, which is seen as a significant competitive advantage for expanding overseas [4]. - The systematic approach and comprehensive planning in liquid cooling business are expected to facilitate the company's entry into international markets [4]. Investment Outlook - The company is in a critical phase of revenue momentum transition, with strong resilience in its main business and leading progress in overseas markets [4]. - Projected net profits for 2025-2027 are estimated at 620 million yuan, 1.05 billion yuan, and 1.53 billion yuan, with corresponding year-on-year growth rates of 37%, 69%, and 47% [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - In H1 2025, the company's revenue slightly exceeded expectations, achieving 2.57 billion yuan, a year-on-year increase of 50.3%, while net profit reached 216 million yuan, up 17.5% year-on-year [4][9]. - The data center segment continued its rapid growth, with revenue from data center temperature control products reaching 1.35 billion yuan, a 57.9% increase year-on-year. The energy storage temperature control segment also performed well, with revenue of 800 million yuan, up 35% [9]. - The company demonstrated resilience in its overseas business, particularly in energy storage, despite trade policy impacts. The liquid cooling segment has begun to show growth, with related revenue exceeding 200 million yuan in H1 2025 [9]. - Inventory and contract liabilities showed strong performance, with inventory reaching 1.24 billion yuan, up 79% year-on-year, and contract liabilities at 400 million yuan, a 109% increase [9]. - The company's end-to-end liquid cooling capabilities are rare globally, positioning it well for overseas market expansion [9]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 2.57 billion yuan, a 50.3% increase year-on-year, and a net profit of 216 million yuan, up 17.5% year-on-year [4][9]. - Q2 2025 revenue was 1.64 billion yuan, a 69.7% increase year-on-year, with net profit of 168 million yuan, a 38% increase [9]. Business Segments - Data center temperature control products generated 1.35 billion yuan in revenue, a 57.9% increase year-on-year, while outdoor cabinet temperature control products reached 930 million yuan, up 32% [9]. - The energy storage temperature control segment outperformed expectations with revenue of 800 million yuan, a 35% increase [9]. Inventory and Orders - As of H1 2025, inventory stood at 1.24 billion yuan, reflecting a 79% year-on-year increase, while contract liabilities reached 400 million yuan, a 109% increase [9]. Future Outlook - The company is in a critical phase of revenue momentum transition, with strong resilience in its main business and leading progress in overseas markets. The liquid cooling capability is expected to be a key driver for future growth [9].