Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a target price of 53.61 yuan per share based on a PS valuation method of 5.7 times for 2025 [4][7]. Core Insights - The company plans to invest 61.2 million yuan to acquire a 51% stake in Shenzhen Guanding Metal Technology Co., which specializes in AI server liquid cooling solutions. This acquisition aims to enhance the company's product offerings and market position in the liquid cooling sector [1][3]. - Shenzhen Guanding, established in 2012, is a leading supplier in the liquid cooling field, providing solutions for AI servers, GPUs, supercomputing centers, and data centers. Its products are utilized by major clients such as Nvidia, Meta, Microsoft, Google, Amazon, Alibaba, and ByteDance [2][3]. - The acquisition is expected to expand the company's customer base, reduce R&D cycles, and enhance its competitive edge in the liquid cooling market, which is projected to grow alongside the expansion of computing centers and AI applications [3]. Financial Projections - Revenue projections for the company are estimated at 2.207 billion yuan, 2.827 billion yuan, and 3.596 billion yuan for the years 2025, 2026, and 2027, respectively. Net profits are expected to be 42 million yuan, 133 million yuan, and 208 million yuan for the same years [4][12]. - The company anticipates a significant increase in revenue growth rates, with a projected growth of 29.0% in 2025, 28.1% in 2026, and 27.2% in 2027 [12][13].

Core Viewpoint - The company, Yidong Electronics, plans to invest 61.2 million yuan to acquire a 51% stake in Shenzhen Guanding, enhancing its capabilities in the liquid cooling sector for AI computing [1] Group 1: Investment Details - Yidong Electronics will acquire 31% of Shenzhen Guanding's equity from Liang Lizhuang for 37.2 million yuan, 10% from Lin Qiang for 12 million yuan, and another 10% from Lin Huoqiang for 12 million yuan [1] - The subsidiary Keli Star will receive an investment of 30 million yuan from the original controlling shareholder of Shenzhen Guanding, increasing its registered capital from 20 million yuan to 22.2222 million yuan [1] Group 2: Company Profile - Shenzhen Guanding, established in 2012, specializes in AI computing liquid cooling solutions and has become a core supplier for leading clients in the liquid cooling sector [2] - The company offers a range of products including water cooling plates, immersion cooling modules, and heat pipe cooling modules, which are widely used in AI servers, GPUs, supercomputing centers, and data centers [2] Group 3: Technological Capabilities - Shenzhen Guanding possesses comprehensive thermal management R&D and production processes, including various welding techniques and capabilities in mold development and surface treatment [3] - The company has seen rapid growth in order volume from renowned clients due to the increasing demand in global computing centers and AI applications [3] Group 4: Strategic Implications - The acquisition will help Yidong Electronics expand its customer resources and enhance its product offerings in the liquid cooling sector, allowing for deeper participation in the supply chain [4] - By integrating Shenzhen Guanding's mature liquid cooling technology and patents, Yidong Electronics aims to reduce R&D cycles and quickly capture high ground in liquid cooling technology, addressing the high-power cooling needs of AI terminals [4]