热管理解决方案- 微流控技术的影响-Greater China Technology Hardware-ThermalCooling Solutions – Implications from Microfluidics Technology

Summary of Key Points from the Conference Call Industry Overview - Industry Focus: Greater China Technology Hardware [2][5] - Key Companies Mentioned: Microsoft, AVC, Auras, Fositek, Delta Electronics Inc., Asia Vital Components Co. Ltd., Auras Technology Co Ltd, Fositek Corp [2][7][8][9][10] Core Insights and Arguments - Microfluidics Technology: Microsoft has developed a new in-chip microfluidics cooling system that outperforms traditional cold plates by up to three times in lab tests, depending on specific workloads and configurations [2][3] - Adoption Timeline: Despite promising lab results, widespread adoption of in-chip microfluidics is expected to take time due to several challenges [3][4] - Reliability Concerns: Liquid leakage remains a significant issue for liquid cooling solutions, with reliability being more critical than performance for server operations [3] - Design Integration: Successful integration of microfluidic designs with server architecture is essential for effective implementation [4] - Serviceability: The ease of maintenance will be crucial for adoption by hyperscalers and data center operators [4] Market Sentiment and Recommendations - Market Sentiment: The announcement of microfluidics technology may negatively impact market sentiment towards the thermal supply chain, particularly affecting companies like AVC, Auras, Fositek, and Delta [7] - Investment Recommendations: There is a bullish outlook on AVC, Fositek, and Delta, suggesting that these stocks could be good buys on any pullbacks, as the adoption of microfluidics is anticipated to take time [7] Valuation Methodology and Risks - Delta Electronics Inc.: Valuation based on a residual income model with key assumptions including a cost of equity of 8%, a medium-term growth rate of 14%, and a terminal growth rate of 3% [8] - Asia Vital Components Co. Ltd.: Valuation assumptions include a cost of equity of 10%, a medium-term growth rate of 13%, and a terminal growth rate of 3% [9] - Auras Technology Co Ltd: Similar valuation model with a cost of equity of 10%, a medium-term growth rate of 12.5%, and a terminal growth rate of 3% [10] - Risks Identified: - Upside risks include faster-than-expected global economic growth and thermal upgrade trends for data centers [12][13][14] - Downside risks include ongoing component supply tightness, rising raw material prices, and intensified industry competition [12][13][17] Additional Important Insights - Thermal Design Upgrades: The trend towards thermal design upgrades in data centers is critical for the industry, with potential impacts on server and switch designs [13][14] - Market Dynamics: The competition within the technology hardware sector is intensifying, which could affect pricing and margins [12][17] This summary encapsulates the essential insights and data points from the conference call, providing a comprehensive overview of the current state and future outlook of the Greater China Technology Hardware industry.