Envicool(002837)2024-08-15 23:30Investment Rating - The investment rating for the company is maintained at "Buy - A" with a 6-month target price of 25.68 CNY [4]. Core Insights - The company reported a significant revenue growth of 38.24% year-on-year, achieving 1.713 billion CNY in the first half of 2024, with a net profit growth of 99.63% to 183 million CNY [2][3]. - The rapid growth is attributed to the strong performance of various business segments, particularly the liquid cooling technology for data centers, which has seen a doubling in revenue [2][3][7]. - The company is well-positioned to benefit from the increasing demand for temperature control solutions driven by AI and energy storage developments [8]. Revenue Breakdown - The revenue from data center temperature control products reached 856 million CNY, up 85.91% year-on-year, driven by new AI applications and increased demand for data centers [3]. - Cabinet temperature control products generated 702 million CNY, a 6.11% increase, while the bus air conditioning business saw a revenue of 276 million CNY, growing by 42.35% [3]. - Revenue from rail transit air conditioning and services reached 479 million CNY, reflecting a 35.88% increase due to several project deliveries [3]. Profitability and Cost Control - The overall gross margin for the first half of 2024 was 30.99%, a slight decrease of 1.05 percentage points from the previous year, but the company has effectively managed costs [4][6]. - The company reported a decrease in sales, management, and R&D expense ratios, indicating improved operational efficiency [6]. Future Projections - The company is expected to achieve revenues of 4.684 billion CNY, 6.222 billion CNY, and 7.725 billion CNY for the years 2024, 2025, and 2026, respectively, with net profits projected at 542.5 million CNY, 728.7 million CNY, and 928.7 million CNY [9][10]. - The projected P/E ratios for the upcoming years are 29.50, 21.97, and 17.23, indicating a favorable valuation trend [9][10].