Group 1 - The company, Feilong Co., announced on November 14 that it has established close partnerships with over 40 leading enterprises in the server liquid cooling sector, including HP, Delta, Jinyun, Vidi, Shenling Environment, Yaha Electronics, Haiwu, Shenzhen Xingqihong, Invec, and Wanbang Digital [2] - Some of the clients in the server liquid cooling field are well-known companies from Taiwan [2]

Core Viewpoint - Feilong Co., Ltd. (002536) is focusing on the liquid cooling core business in the civil sector, particularly in data centers, wind-solar energy storage, and charging piles, while expanding its overseas market presence through partnerships with well-known clients in Taiwan [1] Group 1 - The subsidiary Anhui Hangyi Technology Co., Ltd. is dedicated to the research, production, and sales of IDC liquid cooling circulation pumps, emphasizing product efficiency improvement [1] - The company is promoting the iteration of thermal management integrated module products to enhance the adaptability and market competitiveness of server liquid cooling products [1] - Feilong Co., Ltd. is solidifying its domestic market foundation while actively expanding its business footprint in the overseas server liquid cooling market [1]

Group 1: Real Estate Industry - The real estate industry is expected to face continued pressure in 2025, with new home sales declining by 13% year-on-year in Q3 2025, reaching a historical low comparable to Q3 2019 [9][10] - The report emphasizes the importance of income confidence for the mid-term price trends in real estate, indicating that an income confidence index above 50 is necessary for stable housing prices [9] - Investment strategies suggest waiting for market stabilization and focusing on structural opportunities, recommending companies with low historical burdens and conservative price-to-book ratios [10] Group 2: Semiconductor Industry - The semiconductor industry has shown significant growth, with a 25.1% year-on-year increase in global sales in Q3 2025, marking the eighth consecutive quarter of growth [25] - The report highlights that the profitability of semiconductor companies continues to improve, with a net profit growth of 80.4% year-on-year in Q3 2025 [24] - Investment recommendations focus on storage and self-controlled industrial chains, with specific companies like Jiangbolong and Zhaoyi Innovation suggested for their potential in the rising market [26] Group 3: Food and Beverage Industry - The food and beverage sector has experienced a mixed performance, with the A-share food and beverage index down by 0.29% but outperforming the broader market [19] - The report identifies a divergence in performance among categories, with liquor facing challenges while dairy and beverage segments show signs of recovery [18] - Investment recommendations include focusing on companies with strong growth potential in the beverage sector, such as Nongfu Spring and Eastroc Beverage [19] Group 4: Social Services Industry - The social services sector has underperformed the market, with a year-to-date increase of only 4.95% compared to the broader index [20] - The report notes a significant reduction in fund holdings within the sector, reaching historical lows, indicating a cautious outlook [20] - Investment strategies suggest focusing on sectors showing signs of recovery, such as tourism and education, with specific companies recommended for their growth potential [22] Group 5: AI and Cloud Computing - The AI and cloud computing sectors are experiencing rapid growth, with major cloud providers significantly increasing their capital expenditures to support AI infrastructure [11][12] - The report indicates that cloud service providers contribute approximately 50% of Nvidia's data center revenue, with expectations for substantial growth in global data center investments [12] - Investment recommendations include leading AI cloud platform companies like Microsoft, Google, and Alibaba, as well as chip suppliers like Nvidia [14]

Group 1 - The core viewpoint of the article highlights that Feilong Co. has established strong partnerships with over 40 leading companies in the server liquid cooling sector, indicating a robust market position and collaborative strategy [2] - The partnerships include notable industry players such as HP, Delta, and others, which may enhance Feilong's competitive edge and innovation capabilities in the liquid cooling technology [2] - The company aims to further develop its market presence by 2025, suggesting a strategic focus on growth and expansion within the industry [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 87.72 CNY, based on an expected average PE of 51 times for comparable companies in 2025 [3][6]. Core Insights - The company is expected to continue its global expansion, with robotics and liquid cooling businesses identified as key growth drivers [2]. - The forecasted net profit attributable to the parent company for 2025-2027 is adjusted to 29.92 billion, 36.57 billion, and 45.46 billion CNY, reflecting changes in revenue, gross margin, and expense ratios [3]. - The company is actively expanding its product offerings in humanoid robotics and liquid cooling solutions, which are anticipated to contribute significantly to future revenue growth [9]. Financial Summary - The company's projected revenue for 2023 is 19.701 billion CNY, with a year-on-year growth of 23.2%. By 2027, revenue is expected to reach 46.967 billion CNY, with a growth rate of 19.6% [5]. - The net profit attributable to the parent company is forecasted to be 2.151 billion CNY in 2023, increasing to 4.546 billion CNY by 2027, with a growth rate of 24.3% in the final year [5]. - The gross margin is expected to decline slightly from 22.9% in 2023 to 20.6% in 2027, while the net margin is projected to stabilize around 9.7% by 2027 [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Insights - The company reported a revenue of 1.586 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 15.68%. However, the net profit attributable to the parent company was 71 million yuan, a decrease of 29.25% year-on-year. The decline in profit is attributed to a decrease in gross margin in the automotive business segment [3][4] - In Q3 2025, the company achieved a revenue of 559 million yuan, up 7.55% year-on-year but down 3.70% quarter-on-quarter. The net profit attributable to the parent company was 16 million yuan, down 40.71% year-on-year and 47.80% quarter-on-quarter [3][4] - The company is actively expanding into new fields such as special equipment, engineering machinery, embodied intelligence, and data centers, which are expected to provide long-term growth opportunities [3][4] Financial Performance Summary - For 2025, the company is projected to have a revenue of 2.332 billion yuan, with a year-on-year growth of 15.4%. The net profit attributable to the parent company is expected to be 103 million yuan, reflecting a decrease of 18.2% year-on-year. The gross margin is projected to be 25.4% [6][10] - The company's financial metrics indicate a decline in profitability, with a projected net profit margin of 4.4% for 2025, down from 6.7% in 2023 [6][10] - The company's P/E ratio is expected to be 64.2 for 2025, indicating a high valuation relative to earnings [6][10]

Company Overview - Gaolan Co., Ltd. specializes in the research, production, and sales of pure water cooling equipment and control systems for power electronic devices, widely used in various stages of power generation, transmission, distribution, and consumption [1] - The company operates in the specialized equipment manufacturing industry [1] Financial Performance - As of August 20, 2025, Gaolan's stock price was 32.46 CNY, down 0.54 CNY from the previous trading day's closing price, representing a decline of 1.64% [1] - The opening price for the day was 32.61 CNY, with a highest price of 33.23 CNY and a lowest price of 31.20 CNY, with a trading volume of 744,075 hands and a transaction amount of 2.399 billion CNY [1] Business Operations - On August 20, the company stated on its interactive platform that its production and operational conditions are normal, with all orders being delivered in an orderly manner [1] - The company's server liquid cooling products can maintain a Power Usage Effectiveness (PUE) value below 1.1, which is considered industry-leading [1] - The main products of the thermal management business have reached domestic leading or internationally advanced levels, with some products achieving international leadership [1] - Gaolan has established a wholly-owned subsidiary in Singapore to primarily meet the server liquid cooling business demands in Singapore and Southeast Asia [1] Capital Flow - On August 20, the net outflow of main funds for Gaolan was 114.6239 million CNY, accounting for 1.3% of the circulating market value [1] - Over the past five days, the net outflow of main funds totaled 235.0708 million CNY, representing 2.67% of the circulating market value [1]

Core Insights - The company, Gaolan Co., Ltd. (stock code: 300499), has announced that its server liquid cooling products can maintain a Power Usage Effectiveness (PUE) value below 1.1 [1] Company Summary - Gaolan Co., Ltd. specializes in server liquid cooling products [1] - The ability to control PUE values under 1.1 indicates a strong focus on energy efficiency in their product offerings [1] Industry Summary - The development of energy-efficient cooling solutions is increasingly important in the data center industry, as companies seek to reduce operational costs and environmental impact [1] - Liquid cooling technology is gaining traction as a viable alternative to traditional cooling methods, aligning with industry trends towards sustainability [1]

1. Report Industry Investment Rating No information provided regarding the industry investment rating in the given report. 2. Core Viewpoints of the Report - With the expansion of global AI demand and the capital expenditure on computing power by North American cloud - computing giants, the domestic computing hardware supply chain is expected to continue its high - growth trend. Domestic large - models are predicted to iterate rapidly in the second half of the year, and the AIDC scale is expected to further expand. The pan - AI sector is a relatively scarce high - growth area, and investment opportunities in this sector are recommended to be focused on in Q3 [1][10]. - Currently, convertible bond valuations are at a relatively high historical level due to the continuous inflow of fixed - income funds and the recovery of stock market expectations. The idea of achieving excess returns in the high - valuation range is to bet on the elasticity of the underlying stocks of convertible bonds. When the capital situation of convertible bonds is stable and the stock market expectations do not change significantly, the valuation of the convertible bond market is unlikely to shrink actively. Buying convertible bonds corresponding to high - elasticity underlying stocks (such as those in the AI sector) at a high - risk preference position can easily generate excess returns during an upward wave [1][10]. 3. Summary by Relevant Catalog 3.1 Overall Logic and Layout Ideas - The domestic computing hardware supply chain is expected to maintain high growth due to global AI demand expansion and North American cloud - computing giants' capital expenditure on computing power. Domestic large - models will iterate quickly in the second half, and AIDC will expand. The pan - AI sector is a high - growth area, and Q3 investment opportunities are recommended [1][10]. - For convertible bond investment, with high valuations, the strategy is to invest in convertible bonds of high - elasticity underlying stocks to gain excess returns in an upward market [1][10]. 3.2 Individual Bond Selection 3.2.1 Unex Electronics/Unex Convertible Bond - Unex is a global leader in electronic design and manufacturing services, leading in the SiP module field. It has 30 manufacturing service sites across four continents, providing comprehensive services to global brand customers [16]. - In 2024, its revenue was 60.691 billion yuan, almost flat year - on - year. Cloud and storage product revenue increased by 13.35% due to AI - driven server demand [16]. - In 2025, it aims to accelerate business in AI accelerator cards. It is also developing power modules and motherboards for AI servers. It participates in providing Wi - Fi SiP modules for a North American AI glasses customer's third - generation product and has obtained an order for N - in - one motherboard modules, expected to bring significant revenue in 2026 [2][22][24]. 3.2.2 Huamao Technology/Huamao Convertible Bond - Huamao is a leader in the automotive passive safety field, with products covering airbags, seat belts, etc. In 2024, it released an action plan, strengthening its automotive parts business and entering the semiconductor and computing manufacturing fields [25]. - In 2024, its revenue was 2.213 billion yuan, up 7.67% year - on - year. Net profit was 277 million yuan, up 14.64%. It plans to expand in the semiconductor and computing manufacturing sectors by increasing investment and integrating the supply chain of Fuchuang Youyue [25][30]. - Fuchuang Youyue provides one - stop electronic manufacturing services, especially in high - speed optical module manufacturing for global computing industry chains. It has shipped to 7 of the top 20 global optical module manufacturers in 2024, with over 3.5 million 800G optical module PCBA shipments [31][32]. 3.2.3 Bowei Alloy/Bo 23 Convertible Bond - Bowei's main businesses are new materials and international new energy. Its new materials are high - performance non - ferrous alloy products, widely used in AI, 6G, etc. In 2024, its alloy strip business sales increased by 42.23% and net profit increased by 171.12% [33]. - Its high - speed connector, shielding, and lead - frame materials are crucial for computing servers and data centers. Products like boway19920 and boway70318 meet the requirements of high - computing servers [35]. 3.2.4 Sangfor Technologies/Sangfor Convertible Bond - Sangfor focuses on enterprise - level network security, cloud computing, and IT infrastructure. Its network security business uses cloud security and AI for active monitoring and protection [36]. - It has been developing cloud computing since 2012, launching multiple products. In 2024, it released the AICP platform for large - model development, aiming to lower the threshold of using AI technology [37]. 3.2.5 Minglida/Mingli Convertible Bond - Minglida's products are mainly used in photovoltaic, energy storage, new - energy vehicles, and security. In 2024, its sales declined due to the inventory reduction in the photovoltaic and energy - storage industries. However, demand is recovering in 2025 [39]. - It has made breakthroughs in the new - energy vehicle business with leading global customers. It plans to expand in the robot and liquid - cooling industries and expects increased revenue from server and automotive liquid - cooling [39][43][44].

Investment Rating - The report maintains a "Buy" rating for BYD Electronics with a target price of HKD 41.0, representing a potential upside of 28.9% from the recent closing price of HKD 31.8 [5]. Core Views - The first quarter performance of BYD Electronics was stable, with revenue of RMB 36.88 billion, a year-on-year increase of 1.10%. The gross profit margin was 6.3%, showing a year-on-year decline of 0.58 percentage points but an increase of 0.43 percentage points quarter-on-quarter. The net profit attributable to shareholders was RMB 622 million, up 1.92% year-on-year [1][2]. - The indirect impact of tariffs from the U.S. is considered to be greater than the direct impact, as the company's direct exports to the U.S. are minimal. The company has a broad global layout with factories in Vietnam, India, Malaysia, and Hungary, allowing it to provide low-cost solutions to mitigate risks [2][3]. Summary by Sections Financial Performance - In Q1, the assembly business in the consumer electronics sector remained stable with slight growth, while the automotive business saw an increase due to higher order volumes. However, the demand for high-end smartphones decreased, affecting the gross profit and margin of the main business [2]. - The company reported a gross profit of RMB 2.325 billion, a year-on-year decrease of 7.35% [1]. Future Growth Drivers - For 2025, the assembly business is expected to continue growing, supported by improved efficiency at the Chengdu factory. The automotive electronics segment is anticipated to benefit from the overall growth in vehicle production and increased value per vehicle [3]. Market Position and Strategy - BYD Electronics is viewed positively for its technological leadership and customer resource advantages in the consumer electronics sector. The company is well-positioned to navigate the slow adjustment of supply chains by major clients due to its overseas production capacity [3].