Core Insights - The first "National Green Computing Power Facility" promotion event was held in Shanghai, announcing the list of facilities for 2025, with over 12 million standard racks expected in use, positioning China as the second-largest in global computing power scale [1][2] - The demand for computing power is growing exponentially, driven by applications such as AI model training and industrial internet empowerment, leading to a significant increase in energy consumption [1] - The International Energy Agency reported that global data center electricity consumption has been growing at an annual rate of approximately 12% since 2017, more than four times the global total electricity consumption growth rate [1] Group 1: National Green Computing Power Facilities - A total of 60 data centers were included in the 2025 National Green Computing Power Facility list, covering various sectors such as industrial, information communication, energy, internet, finance, and public institutions [2] - The Ministry of Industry and Information Technology has cultivated over 300 national green computing power facilities, achieving positive results in energy efficiency and collaborative development [2] Group 2: Technological Advancements and Innovations - Shanghai is supporting the implementation of key green low-carbon technologies in computing power centers, with advanced technologies like liquid cooling and AI intelligent operation being scaled up [3] - The city has established a public computing power service platform and a diverse supply structure involving major telecom operators and market participants [3] Group 3: Industry Performance and Market Outlook - Companies in the green computing power supply chain are experiencing robust production and sales, with some firms reporting high capacity utilization and a strong order backlog [4] - The company Shunling Environment has developed a modular liquid cooling system to meet the growing demand for high-density cooling in data centers, serving major clients like Huawei and ByteDance [4] - Kstar, a leading UPS manufacturer, is benefiting from the global data center infrastructure boom, with increasing orders and exports to over 180 countries [5]

Group 1 - The first "National Green Computing Power Facility" promotion and exchange event was held in Shanghai, announcing the list of national green computing power facilities for 2025, with over 12 million standard racks expected to be in use in China, making it the second-largest globally in terms of computing power scale [1] - The demand for computing power driven by AI model training and industrial internet applications is growing exponentially, leading to a significant increase in energy demand, with global data center electricity consumption growing at an average annual rate of about 12% since 2017, more than four times the global total electricity consumption growth rate [1] - The event featured 60 data centers selected for the national green computing power facility list, including facilities from various sectors such as industrial, information communication, energy, internet, finance, and public institutions [1] Group 2 - The Ministry of Industry and Information Technology emphasizes the importance of green and low-carbon development of computing power facilities, having cultivated over 300 national green computing power facilities across various sectors, achieving positive results in energy efficiency and collaborative computing power [2] - Shanghai currently has over 160 data centers with approximately 250,000 operational racks, accounting for nearly 3% of the city's total electricity consumption, and supports the implementation of green low-carbon technologies in various centers [2] - Shanghai's intelligent computing power deployment has reached 120,000 P (FP16), forming a diverse supply structure with a public computing power service platform and collaboration among major operators and market entities [2] Group 3 - The core goal of "green computing power" is to reduce the energy consumption of computing infrastructure, with PUE (Power Usage Effectiveness) being a key metric for measuring this goal, where a lower PUE indicates higher operational efficiency and reduced carbon emissions [3] - Several companies in the green computing power supply chain showcased new products and systems at the event, with some expressing optimism about industry growth, highlighting high capacity utilization and sufficient orders [3] - Companies like Shenling Environment are expanding their production capabilities for liquid cooling systems, which are essential for high-density heat dissipation in data centers, and have established partnerships with major clients such as Huawei and ByteDance [4] Group 4 - UPS (Uninterruptible Power Supply) systems are essential for data center construction, significantly impacting computing power output, with companies like Kstar showcasing their latest integrated system models at the event [4] - Kstar's data center business is benefiting from a global infrastructure boom, with increasing orders and shipments contributing to rapid overall performance growth, and their products meeting national green energy efficiency standards [4] - The company serves major internet, finance, and communication clients while expanding its overseas business, exporting products to over 180 countries and regions [4]

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of 103.2 CNY based on a 65x PE for 2026 [5]. Core Views - The company is positioned as a comprehensive solution provider in environmental regulation, with a strong focus on data services driving performance growth. The data services segment is expected to be a major growth driver from 2025 to 2027, with projected revenues of 27 billion, 46 billion, and 64 billion CNY, reflecting year-on-year growth rates of 77%, 67%, and 39% respectively [3][5]. Summary by Sections Investment Logic - The company has 25 years of experience in environmental regulation equipment, focusing on four main scenarios: data services, industrial processes, specialized applications, and public/commercial use. The data services segment saw a 16.2% year-on-year revenue increase in the first half of 2025, with new orders up 200% from January to August, providing strong support for sustained performance [2]. Data Center Business Growth - The data center business is identified as the company's largest growth point, driven by rapid increases in global data center investments and a shift from air cooling to liquid cooling solutions. The company has established a comprehensive solution covering all aspects of temperature control for data centers, enhancing cooling performance and energy efficiency [3][4][5]. Industrial Demand - The industrial temperature control market is projected to reach 23.6 billion USD by 2025, with the public and power sectors accounting for 43% of this market. The company has extensive experience in thermal management systems across various power projects, positioning it to benefit from the growing demand in specialized industrial fields [4]. Financial Projections - The company is expected to achieve revenues of 43.9 billion, 63.8 billion, and 83.4 billion CNY from 2025 to 2027, with corresponding net profits of 2.9 billion, 4.2 billion, and 6.7 billion CNY, reflecting significant growth rates [5][7].

Core Viewpoint - The establishment of the intelligent temperature control product manufacturing base by Guangdong Shenling Environment marks a significant step in the new infrastructure and green low-carbon industry layout in Shunde, aiming to become a leading center for data center and energy storage temperature control equipment research and manufacturing [1][2]. Group 1: Project Overview - The project has a total investment of 680 million yuan and covers an area of 63 acres, with the goal of creating a globally leading research and manufacturing center for intelligent temperature control products [1]. - The new facility includes two digitalized four-story buildings and a nearly zero-energy comprehensive green building, expanding the total construction area from 35,000 square meters to over 100,000 square meters [2]. Group 2: Technological Innovation - The company has developed the "Shenling IoT Platform," integrating equipment, energy-saving self-control systems, and platform services to provide green low-carbon solutions [2]. - The project has been recognized as a national advanced technology demonstration project for green low-carbon initiatives, showcasing a model for energy-efficient utilization and precise carbon emission management [2]. Group 3: Corporate Development - Guangdong Shenling Environment, established in 2000 and listed in 2021, operates across the entire chain of air conditioning, environmental governance, and energy management, serving major clients like Huawei and Tesla [3]. - The company aims to expand into the Malaysian market by 2025, offering comprehensive lifecycle services for green low-carbon temperature control products and technologies [3]. Group 4: Government Support - The local government has implemented innovative measures to enhance service efficiency for enterprises, facilitating the project's development and ensuring a supportive environment for high-quality growth [4]. - The project is part of the "Green Beautiful Enterprise" initiative, promoting urban quality improvement through collaboration between government and enterprises [5]. Group 5: Regional Development - Chen Village is experiencing a new wave of high-quality development, with multiple enterprises choosing it as a preferred investment destination [6].