Core Viewpoint - The company, Yidong Electronics, plans to acquire a 51% stake in Shenzhen Guanding Metal Technology Co., Ltd. for 61.2 million yuan, aiming to enhance its capabilities in the AI server liquid cooling sector [2][4]. Group 1: Acquisition Details - Yidong Electronics will use its own funds for the acquisition, which does not constitute a related party transaction or a major asset restructuring [2]. - The acquisition involves purchasing 31% of the shares from Liang Lizhuang for 37.2 million yuan, 10% from Lin Qiang for 12 million yuan, and another 10% from Lin Huoqiang for 12 million yuan, totaling 61.2 million yuan [2]. Group 2: Company Profile of Shenzhen Guanding - Shenzhen Guanding, established in 2012, specializes in AI computing liquid cooling solutions, with products like water cooling plates and immersion cooling modules [3]. - The company has notable clients including Nvidia, Meta, AMD, and Alibaba, indicating a strong market presence [3]. Group 3: Financial Performance - For the first eight months of 2025, Shenzhen Guanding reported revenues of 67.464 million yuan, a year-on-year increase of 40.83%, and a net profit of 5.5422 million yuan, marking a turnaround from a loss in 2024 [3]. - Yidong Electronics' subsidiary, Dongguan Keli Star Electronics, achieved revenues of 56.8593 million yuan in the same period, a significant increase of 688.87% year-on-year [3]. Group 4: Market Outlook - The rapid growth of global computing centers and AI industries positions Shenzhen Guanding as a key supplier in the liquid cooling sector, with expanding applications for its products [4]. - The acquisition is expected to enhance Yidong Electronics' customer resource complementarity and broaden its product matrix in liquid cooling solutions [4]. Group 5: Strategic Implications - The acquisition will allow Yidong Electronics to integrate advanced liquid cooling technologies and patents, reducing R&D cycles and enhancing competitiveness in the AI cooling market [6]. - The collaboration is anticipated to create synergies that will improve Yidong Electronics' market position and profitability in the AI and computing sectors [6].

Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a target price of 53.61 yuan per share based on a PS valuation method of 5.7 times for 2025 [4][7]. Core Insights - The company plans to invest 61.2 million yuan to acquire a 51% stake in Shenzhen Guanding Metal Technology Co., which specializes in AI server liquid cooling solutions. This acquisition aims to enhance the company's product offerings and market position in the liquid cooling sector [1][3]. - Shenzhen Guanding, established in 2012, is a leading supplier in the liquid cooling field, providing solutions for AI servers, GPUs, supercomputing centers, and data centers. Its products are utilized by major clients such as Nvidia, Meta, Microsoft, Google, Amazon, Alibaba, and ByteDance [2][3]. - The acquisition is expected to expand the company's customer base, reduce R&D cycles, and enhance its competitive edge in the liquid cooling market, which is projected to grow alongside the expansion of computing centers and AI applications [3]. Financial Projections - Revenue projections for the company are estimated at 2.207 billion yuan, 2.827 billion yuan, and 3.596 billion yuan for the years 2025, 2026, and 2027, respectively. Net profits are expected to be 42 million yuan, 133 million yuan, and 208 million yuan for the same years [4][12]. - The company anticipates a significant increase in revenue growth rates, with a projected growth of 29.0% in 2025, 28.1% in 2026, and 27.2% in 2027 [12][13].

Investment Rating - The report maintains a "Buy-A" investment rating with a target price of 11.02 CNY for the next six months [6][4]. Core Views - The company is expected to achieve a net profit of 900 million to 1.14 billion CNY in the first half of 2025, representing a year-on-year growth of 31.57% to 66.66% [1][2]. - The company is actively increasing its investment in AI terminal hardware and has made significant progress in product innovation across multiple fields, including foldable screens and robotics [3][2]. - The automotive sector has shown substantial improvement in operational efficiency compared to the previous year, contributing positively to overall profitability [2]. Financial Summary - Revenue projections for 2025 to 2027 are estimated at 50.93 billion CNY, 59.23 billion CNY, and 68.12 billion CNY respectively, with net profits of 2.41 billion CNY, 3.06 billion CNY, and 3.56 billion CNY [4][9]. - The company’s net profit margin is projected to improve, with a net profit margin of 4.7% in 2025 and stabilizing at 5.2% in 2026 and 2027 [10]. - The company’s earnings per share (EPS) is expected to increase from 0.34 CNY in 2025 to 0.51 CNY in 2027 [10].