Investment Rating - The report assigns an "Outperform" rating to the company for the first time [4][7]. Core Viewpoints - The company is a leader in ultra-high voltage pure water cooling equipment and is expected to benefit from the long-term prosperity of the domestic power grid and continuous breakthroughs in overseas business, particularly in the data center liquid cooling sector, which is anticipated to open up greater growth potential [4][14]. - The company has a strong order backlog, with orders expected to grow significantly due to the increasing demand for power management solutions in both domestic and international markets [2][50]. Summary by Relevant Sections Company Overview - The company has been focused on thermal management technology for over 20 years and has established itself as a leading provider of industrial thermal management solutions, with products that are recognized as domestically leading or internationally advanced [14][15]. - The company has a diverse client base, including major players in various sectors such as State Grid, Alibaba, Tencent, and GE, which reflects its strong market position [15][20]. Financial Analysis - The company experienced revenue fluctuations due to acquisitions and divestitures but has returned to a growth phase, with a revenue of 4.18 billion yuan in the first half of 2024, representing a year-on-year increase of 47.81% [24][31]. - The company's net profit for the same period was 23 million yuan, showing a remarkable year-on-year growth of 1438.57% [24][31]. Power Electronics Thermal Management - The company is benefiting from the recovery of the domestic power grid investment, with its power electronics thermal management business experiencing a significant revenue increase of 239.39% year-on-year in the first half of 2025 [31][45]. - The company’s focus on high-power density thermal management products, particularly in data centers and energy storage, has led to rapid growth, with revenues expected to reach 3.28 billion yuan in 2024, a 74.66% increase [31][36]. Data Center Liquid Cooling - The global data center liquid cooling market is projected to grow significantly, with a compound annual growth rate (CAGR) of 33.21% from 2025 to 2030, driven by the increasing demand for AI infrastructure and high-density computing [3][57]. - The company has established stable partnerships with leading clients in the data center sector, including ByteDance and Alibaba, which positions it well to capitalize on the growing demand for liquid cooling solutions [62][64]. Overseas Expansion - The establishment of subsidiaries in Singapore and the United States is aimed at enhancing the company's ability to serve overseas markets, particularly in Southeast Asia and North America, thereby opening up new growth opportunities [20][64].