Investment Rating - The report maintains a "Buy" rating for the company [5][11]. Core Insights - The company, Tongfei Co., Ltd., specializes in industrial temperature control and is expanding into energy storage and data center liquid cooling sectors, positioning itself to benefit from these growing markets [2][3][4]. - The company has established a strong market presence with notable clients in the energy storage sector, projecting a revenue of approximately 1.18 billion yuan in 2024, reflecting a year-on-year growth of about 30% from 2022 [3]. - The company is actively investing in new facilities to support its growth, with plans to establish projects in Hebei and Suzhou, totaling an investment of approximately 900 million yuan [4]. Summary by Sections 1. Industrial Temperature Control and Product Expansion - Tongfei Co., Ltd. has been deeply engaged in the industrial temperature control sector since its establishment in 2001, focusing on technological innovation and specialized development [19]. - The company has diversified its product lines to include solutions for energy storage and data centers, with a growing international footprint in regions such as Europe, the USA, Singapore, and Thailand [2][19]. 2. Market Potential in Energy Storage and Data Centers - The energy storage industry is experiencing high demand, and the company is well-positioned to benefit from its leading market position, offering reliable temperature control products that perform well in extreme environments [3][4]. - The data center market is also expanding, with the company introducing a full suite of liquid cooling solutions, which are expected to drive new growth opportunities [4]. 3. Financial Performance and Growth Projections - The company has shown significant revenue growth, with projections indicating revenues of 2.88 billion yuan in 2025, 3.89 billion yuan in 2026, and 5.01 billion yuan in 2027, alongside net profits of 2.8 billion yuan, 4.3 billion yuan, and 5.9 billion yuan respectively [5][6]. - The revenue from liquid temperature control equipment is expected to continue to grow, driven by the rapid expansion of the energy storage market [29]. 4. Operational Efficiency and Management - The company has maintained a stable shareholding structure, which supports governance efficiency and strategic planning [45]. - The management team has extensive experience, with many executives having served for nearly a decade, contributing to the company's operational stability [51]. 5. Investment in Future Capabilities - The company is investing in new production bases to enhance its capacity, with plans to start construction on approximately 60 acres of industrial land in 2026 [4]. - The establishment of a robust service network both domestically and internationally is aimed at improving customer support and enhancing market penetration [50].

Core Viewpoint - Tongfei Co., Ltd. (300990.SZ) is advancing its industrial temperature control business by launching two major investment projects in Hebei and Jiangsu, with a total investment of 900 million yuan, reflecting its strategic ambition to capture emerging market opportunities [1][2]. Group 1: Investment Projects - The southern headquarters project in Suzhou will involve an investment of 600 million yuan to establish a production base for cooling equipment and components, covering four product series, including liquid temperature control devices and special heat exchangers, targeting high-growth sectors such as CNC equipment and new energy vehicles [2][3]. - The northern base in Sanhe will focus on local upgrades with a planned investment of 300 million yuan for a liquid cooling temperature control project, aimed at enhancing core production capacity and expanding revenue scale [2][3]. Group 2: Market Demand and Growth - The demand for industrial temperature control equipment is expanding due to the rapid development of emerging industries like new energy vehicles and data centers, with liquid cooling technology becoming a mainstream solution due to its efficiency [3]. - In 2025, Tongfei Co., Ltd. is expected to see a recovery in performance, with a projected revenue of 2.081 billion yuan in the first three quarters, marking a 51.5% year-on-year increase, and a net profit of 180 million yuan, up 158.11% [4][5]. Group 3: Business Performance - The company has experienced continuous growth in net profit for four consecutive quarters, with significant increases in each quarter from Q4 2024 to Q3 2025, showcasing strong financial performance [4]. - The growth is driven by the dual engines of energy storage and liquid cooling businesses, with energy storage temperature control revenue reaching 681 million yuan, a year-on-year increase of 87%, benefiting from partnerships with leading clients [5].

Core Viewpoint - The company plans to invest approximately 600 million yuan in establishing a southern headquarters and a cooling equipment project in Suzhou Science and Technology City, enhancing its product supply and service capabilities [2][2]. Group 1: Investment and Project Details - The company intends to sign a strategic cooperation agreement with the Suzhou Science and Technology City Management Committee [2]. - The investment amount for the project is around 600 million yuan [2]. - A wholly-owned subsidiary will be established in the Suzhou High-tech Zone to implement the project [2]. Group 2: Product Focus and Applications - The project will primarily produce four product series: liquid temperature control equipment, electrical box temperature control devices, pure water cooling units, and special heat exchangers [2]. - These products and solutions will be applied in various industries, including CNC equipment, lasers, power electronics, energy storage, semiconductors, data centers, hydrogen energy, new energy vehicles (charging and swapping), medical devices, and oil and gas storage and transportation [2]. Group 3: Strategic Goals and Market Impact - The construction of approximately 60 acres of industrial land is planned to start in 2026, with the introduction of multiple digital production lines [2]. - The company aims to create an integrated industrial pattern of "R&D - manufacturing - sales - service" [2]. - This external investment is expected to enhance customer stickiness and facilitate market expansion, thereby increasing the company's influence [2].

Group 1 - The company signed a strategic cooperation intention letter with the Suzhou Science and Technology City Management Committee to invest approximately 600 million yuan in a new headquarters and cooling equipment project [1] - The project will cover an area of about 60 acres and will primarily produce liquid temperature control equipment, electrical box temperature control devices, pure water cooling units, and special heat exchangers [1] - The products will be applied in various fields including CNC equipment, lasers, energy storage, semiconductors, and new energy vehicles [1] Group 2 - The company plans to establish a wholly-owned subsidiary with a registered capital of 100 million yuan in the Suzhou High-tech Zone as the project implementation entity [1] - The funding for this investment will come from the company's own or raised funds, and it is not expected to have a significant impact on the company's operating results in the short term [1] - There are uncertainties related to approvals, land transfer, and other matters, which may pose risks of delays, changes, or termination of the project [1]

Group 1 - The stock of Tongfei Co., Ltd. dropped by 5.01% on December 18, trading at 77.28 yuan per share, with a transaction volume of 415 million yuan and a turnover rate of 6.78%, resulting in a total market capitalization of 13.182 billion yuan [1] - Tongfei Co., Ltd. is located in the Hebei Sanhe Economic Development Zone and was established on January 11, 2001. The company went public on May 12, 2021, and its main business involves the research, production, and sales of industrial temperature control equipment [1] - The revenue composition of Tongfei Co., Ltd. includes liquid constant temperature equipment at 70.43%, electrical box temperature control devices at 14.48%, pure water cooling units at 8.60%, special heat exchangers at 3.43%, and others at 3.06% [1] Group 2 - According to data from the top ten heavy stocks of funds, Penghua Fund holds a significant position in Tongfei Co., Ltd. with one fund, Penghua Jinxing Mixed A (008119), holding 4,500 shares, accounting for 0.58% of the fund's net value, making it the second-largest heavy stock [2] - The latest scale of Penghua Jinxing Mixed A (008119) is 61.5012 million yuan, with a year-to-date return of 3.57%, ranking 6,990 out of 8,100 in its category, and a one-year return of 3.79%, ranking 6,908 out of 8,065 [2] - Since its inception, Penghua Jinxing Mixed A (008119) has achieved a return of 35.56% [2]

Core Viewpoint - Tongfei Co., Ltd. experienced a significant decline in stock price, with a drop of 5.79% on November 21, resulting in a trading volume of 235 million yuan. The company has a high financing balance, indicating potential investor caution [1]. Financing and Margin Trading - On November 21, Tongfei Co., Ltd. had a financing buy-in amount of 20.27 million yuan and a financing repayment of 31.39 million yuan, leading to a net financing outflow of 11.13 million yuan. The total financing and margin trading balance reached 180 million yuan, accounting for 1.62% of the circulating market value, which is above the 80th percentile level over the past year [1]. - The company had no short selling activity on the same day, with a short selling balance of 6529 yuan, also exceeding the 80th percentile level over the past year [1]. Business Performance - For the period from January to September 2025, Tongfei Co., Ltd. achieved an operating income of 2.08 billion yuan, representing a year-on-year growth of 51.50%. The net profit attributable to shareholders was 180 million yuan, reflecting a substantial year-on-year increase of 158.11% [2]. - The company has distributed a total of 337 million yuan in dividends since its A-share listing, with 244 million yuan distributed over the past three years [3]. Shareholder Structure - As of September 30, 2025, the number of shareholders for Tongfei Co., Ltd. increased by 3.46% to 13,100, with an average of 5840 circulating shares per person, a decrease of 5.08% [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 1.77 million shares, an increase of 372,700 shares compared to the previous period. Other notable changes include a decrease in holdings by Southern Innovation-Driven Mixed A and Fortune New Vitality Flexible Allocation Mixed A [3].

Core Insights - The company reported a significant increase in revenue and net profit for Q3 2025, with revenue reaching 8.17 billion yuan, a year-on-year growth of 42.39%, and a net profit of 0.56 billion yuan, up 16.06% year-on-year [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 20.81 billion yuan, reflecting a year-on-year increase of 51.50%, and a net profit attributable to shareholders of 1.8 billion yuan, which is a remarkable growth of 158.11% [1]. - The gross margin for Q3 2025 was reported at 6.8%, showing a decline of 2.21 percentage points year-on-year and 1.98 percentage points quarter-on-quarter, attributed to pricing pressures in the liquid cooling segment [2]. Business Analysis - The growth in revenue is primarily driven by the booming demand in the energy storage sector, with the company serving major clients such as CATL, Sungrow, and CRRC, which enhances its product reliability and safety [2]. - The company is expanding its liquid cooling solutions for AI hardware, anticipating a market potential in the hundreds of billions, and has established partnerships with quality clients like Kehua Data and Dongguan Taishuo [3]. - Strategic international expansion is underway, with plans to establish a wholly-owned subsidiary in Singapore and a production base in Thailand to improve responsiveness to overseas clients and mitigate tariff uncertainties [3]. Forecast and Valuation - Revenue projections for 2025 to 2027 are estimated at 25.73 billion yuan, 36.25 billion yuan, and 48.44 billion yuan, with year-on-year growth rates of 19.1%, 40.9%, and 33.6% respectively [4]. - Expected earnings per share (EPS) for the same period are 1.58 yuan, 2.21 yuan, and 2.93 yuan, with price-to-earnings (PE) ratios of 46, 33, and 25 [4].

Group 1 - The stock of Tongfei Co., Ltd. dropped by 5.05% on October 9, trading at 80.71 CNY per share, with a transaction volume of 290 million CNY and a turnover rate of 4.56%, resulting in a total market capitalization of 13.7 billion CNY [1] - Tongfei Co., Ltd. specializes in the research, production, and sales of industrial temperature control equipment, with its main business revenue composition being: liquid constant temperature equipment 70.43%, electrical box temperature control devices 14.48%, pure water cooling units 8.60%, special heat exchangers 3.43%, and others 3.06% [1] Group 2 - Changxin Fund holds a significant position in Tongfei Co., Ltd. through its fund Changxin Quantitative Small and Medium Cap Stock A (519975), which held 73,800 shares in the second quarter, accounting for 1.48% of the fund's net value, ranking as the tenth largest holding [2] - The fund has experienced a floating loss of approximately 316,600 CNY as of the latest data [2] - Changxin Quantitative Small and Medium Cap Stock A has a total scale of 221 million CNY and has achieved a year-to-date return of 38.18%, ranking 1385 out of 4221 in its category [2]

Group 1 - The stock of Tongfei Co., Ltd. increased by 5.05% on September 25, reaching a price of 85.52 CNY per share, with a trading volume of 300 million CNY and a turnover rate of 4.63%, resulting in a total market capitalization of 14.517 billion CNY [1] - Tongfei Co., Ltd. specializes in the research, production, and sales of industrial temperature control equipment, with its main business revenue composition being: liquid constant temperature equipment 70.43%, electrical box constant temperature devices 14.48%, pure water cooling units 8.60%, special heat exchangers 3.43%, and others 3.06% [1] Group 2 - Nord Fund has a significant holding in Tongfei Co., Ltd., with the Nord Quantitative Core A fund (006267) holding 25,700 shares, accounting for 1.05% of the fund's net value, ranking as the tenth largest holding [2] - The Nord Quantitative Core A fund has achieved a year-to-date return of 31.64%, ranking 2981 out of 8173 in its category, and a one-year return of 70.67%, ranking 1550 out of 8003 [2] - The fund manager, Wang Hengnan, has been in position for 6 years and 310 days, with the fund's total asset size currently at 220 million CNY, and the best return during his tenure being 54.3% [2]

Core Viewpoint - Tongfei Co., Ltd. has shown significant growth in revenue and net profit, indicating strong business performance and investor interest in the company [2][3]. Financing Summary - On September 17, Tongfei Co., Ltd. experienced a stock price increase of 1.38% with a trading volume of 516 million yuan. The financing buy-in amount was 41.09 million yuan, while the financing repayment was 61.67 million yuan, resulting in a net financing outflow of 20.58 million yuan. The total financing and securities balance reached 141 million yuan [1]. - The current financing balance of 141 million yuan accounts for 0.96% of the circulating market value, which is above the 80th percentile of the past year, indicating a high level of financing activity [1]. - In terms of securities lending, there were no shares sold or repaid on September 17, with a remaining balance of 100 shares valued at 8,597 yuan, which is above the 70th percentile of the past year [1]. Business Performance - As of June 30, the number of shareholders for Tongfei Co., Ltd. increased to 12,600, a rise of 27.29%, while the average circulating shares per person decreased by 21.09% to 6,153 shares [2]. - For the first half of 2025, the company reported a revenue of 1.264 billion yuan, representing a year-on-year growth of 58.04%. The net profit attributable to shareholders was 125 million yuan, showing a remarkable increase of 466.71% compared to the previous year [2]. Dividend and Shareholding Structure - Since its A-share listing, Tongfei Co., Ltd. has distributed a total of 337 million yuan in dividends, with 244 million yuan distributed over the past three years [3]. - As of June 30, 2025, new institutional shareholders have entered the top ten circulating shareholders, including Hong Kong Central Clearing Limited and several mutual funds, indicating growing institutional interest in the company [3].