Investment Rating - The report maintains a "Buy" rating for Dongyangguang, indicating a positive outlook for the company in the context of the chemical industry [5]. Core Insights - The chemical sector is experiencing a configuration opportunity, with the index having adjusted from a peak of 9565.18 points to a low of 3876.11 points, a cumulative decline of 59.5% from September 2021 to February 2024. However, the sector has shown resilience with a cumulative increase of 13.9% from July 11 to October 17, 2024 [1]. - Dongyangguang's acquisition of Qinhuai Data for 28 billion RMB is expected to accelerate its strategic transformation into the high-growth data center sector, leveraging core technologies and a strong client base [2]. - The integration of Qinhuai Data is anticipated to enhance Dongyangguang's capabilities in AI infrastructure, particularly in liquid cooling and power management, addressing key performance bottlenecks in AI factories [2][6]. Summary by Sections Industry Overview - The chemical industry has seen a significant downturn but is now poised for recovery, with construction project growth rates declining to negative values by Q1 2025 [1]. - The report highlights the ongoing trend of "anti-involution" contributing to the sector's strength [1]. Company Analysis - Dongyangguang's acquisition of Qinhuai Data is a strategic move to enter the data center market, with projected EBITDA nearing 4 billion RMB by 2025 [2]. - The company is positioned to create a comprehensive solution in liquid cooling and power management, enhancing its competitive edge in the AI infrastructure space [6]. Financial Projections - Dongyangguang's earnings per share (EPS) are projected to grow from 0.12 RMB in 2024 to 0.94 RMB by 2027, with a significant reduction in price-to-earnings (PE) ratio from 190.00 in 2024 to 21.72 in 2027, indicating improved profitability [5].