Envicool(002837) 首创证券·2024-04-13 16:00Investment Rating - The report assigns a "Buy" rating to the company [4] Core Views - The company has been deeply involved in the precision temperature control industry for nearly 20 years, continuously improving its product lines and application areas [19] - The demand for data center temperature control is vast, with an estimated market size exceeding 90 billion RMB from 2023 to 2025 [19] - The penetration rate of efficient cooling technologies such as indirect evaporative cooling and liquid cooling is expected to increase significantly [19] - The company's high R&D investment and platform-based R&D model have resulted in a rich product matrix [19] - The company is expected to benefit from the high demand in data center and energy storage temperature control, with projected net profits of 3.9/5.4/7.1 billion RMB for 2023-2025 [19] Company Overview - The company is a leading provider of precision temperature control and energy-saving equipment in China [2] - The company's equity structure is stable, with the largest shareholder being Yingweike Investment, holding 25.5% of the shares [14] - The company's revenue and net profit have shown continuous growth, with revenue increasing from 1.07 billion RMB in 2018 to 2.92 billion RMB in 2022, a CAGR of 28.6% [24] - The company's gross margin and net margin have remained stable, with a recent recovery trend [49] - The company's core businesses include data center and cabinet temperature control equipment, with rapid growth in energy storage-related businesses [29] Data Center Temperature Control - Data center energy consumption is high, accounting for an increasing proportion of total electricity consumption, with data center electricity consumption expected to exceed 400 billion kWh by 2025 [58] - The PUE (Power Usage Effectiveness) requirements for data centers are increasing, with new large and super-large data centers required to have a PUE below 1.3 [43] - The power density of data center cabinets is increasing, with traditional cooling methods unable to meet the demand [96] - Indirect evaporative cooling and cold plate liquid cooling are expected to grow rapidly in the short to medium term, while immersion cooling will have significant advantages in the long term [103] - The demand for data center temperature control is expected to exceed 90 billion RMB from 2023 to 2025, with the annual demand exceeding 40 billion RMB by 2025 [112] Energy Storage Temperature Control - The rapid development of wind and solar energy has increased the demand for energy storage, with electrochemical energy storage becoming the mainstream of new energy storage [124] - Temperature control is crucial for energy storage, with the demand for temperature control increasing alongside the growth in energy storage installations [127] - Liquid cooling is becoming more prevalent due to its comprehensive advantages, with the penetration rate of liquid cooling expected to increase [130] - The company has a first-mover advantage in energy storage temperature control, with a platform-based R&D model enhancing its competitive edge [120] Product and Technology - The company has a rich product matrix in data center temperature control, including air cooling, liquid cooling, and integrated solutions [113] - The company has been a pioneer in indirect evaporative cooling technology, with its XFlex modular evaporative cooling unit achieving a PUE below 1.15 [117] - The company has been actively developing liquid cooling solutions, with its Coolinside full-chain liquid cooling solution achieving a single cabinet power density of 200kW [142] - The company's R&D expenditure ratio is consistently higher than its competitors, reflecting its emphasis on innovation [144]