Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is deeply integrated with major domestic manufacturers in traditional polymer materials and is expanding its overseas customer base. In the telecommunications sector, it has strengthened partnerships with leading companies like Huawei and ZTE, achieving a revenue of 64.32 million yuan in the first half of 2025, a year-on-year increase of 14.24% [4]. - In the power sector, the company has developed three product lines and achieved stable revenue of 80.44 million yuan in the first half of 2025. In the automotive sector, it has deepened strategic cooperation with major clients like Chery, generating revenue of 89.25 million yuan, up 9.79% year-on-year [4]. - The home appliance thermal management business remains stable, while the liquid cooling plate business for electric vehicles has seen explosive growth, with revenue from high-frequency welded liquid cooling plates increasing by 303.61% year-on-year in the first half of 2025 [5]. - The establishment of a wholly-owned subsidiary, Chuangyuan Zhihuo, has allowed the company to enter the AI liquid cooling market, focusing on data center cooling components. The subsidiary is actively integrating into the supply chains of leading industry players [6]. - The company plans to acquire a 51% stake in Dongguan Zhaoke to enhance its thermal interface materials (TIMs) offerings, which have gained traction in both domestic and international markets [7]. Financial Projections - The company is projected to achieve revenues of 1.309 billion yuan, 2.418 billion yuan, and 3.537 billion yuan for the years 2025, 2026, and 2027, respectively. Correspondingly, the net profit attributable to the parent company is expected to be 39 million yuan, 129 million yuan, and 243 million yuan [8]. - The revenue growth rates are forecasted at 36.59% for 2025, 84.79% for 2026, and 46.26% for 2027 [10].

Core Viewpoint - Company reported significant growth in revenue and net profit for the first half of 2025, driven by the rapid expansion of its liquid cooling plate business for electric vehicle batteries and overseas communication services [1][2]. Financial Performance - Revenue for the first half of 2025 reached 540 million yuan, a year-on-year increase of 43.9% [2]. - Net profit attributable to shareholders was 17.6 million yuan, reflecting a substantial growth of 520.71% compared to the previous year [2]. - Operating profit was 23.67 million yuan, up 405.78% year-on-year [1][2]. - Basic and diluted earnings per share increased to 0.14 yuan, a 600% rise from the previous year [2]. Business Segments - In the polymer materials sector, the company generated 229 million yuan in revenue, a growth of 6.04% [3]. - The thermal management systems segment saw revenue of 311 million yuan, marking a significant increase of 95.31% [3]. - The company is actively developing data center cooling components through its subsidiary, focusing on collaborative manufacturing and self-production [3][4]. Market Trends - The liquid cooling sector has experienced a surge, with an increase of 28.54% in the sector since August, driven by the demand from AI and electric vehicles [6]. - The company plans to enhance its data center liquid cooling technology and industrial application in the second half of 2025, aiming to seize industry opportunities [5][9]. - The rise in demand for liquid cooling solutions is attributed to the increasing heat density in computing equipment and data centers, necessitating advanced cooling technologies [9].