Envicool(002837) 民生证券·2024-10-25 04:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 31.60 CNY [3]. Core Insights - The company reported a significant profit increase, with a revenue of 2.87 billion CNY for the first three quarters of 2023, representing a year-on-year growth of 38.6%, and a net profit of 350 million CNY, up 67.8% year-on-year [1]. - The gross margin has been improving steadily, reaching 32.8% in Q3 2024, driven by strong demand for high-end cooling products in data centers and computing environments [1]. - The company is deepening partnerships with industry leaders, such as NVIDIA, to enhance its position in the liquid cooling market, which is becoming essential for energy efficiency in data centers [1]. - The energy storage business is also highlighted as a strength, with the company being a key supplier for major projects, including a significant sodium-ion storage project [1]. - Revenue projections for 2024-2026 are estimated at 5.22 billion CNY, 6.64 billion CNY, and 8.60 billion CNY, with net profits of 540 million CNY, 690 million CNY, and 800 million CNY respectively, indicating a strong growth trajectory [1]. Financial Summary - For Q3 2024, the company achieved a revenue of 1.16 billion CNY, a year-on-year increase of 39.2% and a quarter-on-quarter increase of 19.9% [1]. - The net profit for Q3 2024 was 170 million CNY, reflecting a year-on-year growth of 43.1% and a quarter-on-quarter growth of 39.3% [1]. - The company’s gross margin for the first three quarters of 2024 was 29.5%, 32.1%, and 32.8% respectively, indicating a positive trend in profitability [1]. - The projected P/E ratios for 2024, 2025, and 2026 are 43x, 34x, and 29x respectively, based on the closing price on October 24, 2024 [1].