Envicool(002837) Guoxin Securities·2024-04-23 05:30Investment Rating - The investment rating for the company is "Accumulate" [2][4][30]. Core Views - The company reported a net profit growth of 147% year-on-year in Q1 2024, with operating revenue reaching 750 million yuan, a 41.4% increase compared to the previous year. The net profit attributable to shareholders was 61.98 million yuan, reflecting a 146.9% increase [2]. - The growth in revenue is primarily driven by the increase in data center temperature control products, with significant contracts secured from operators and internet companies starting in 2023 [2]. - The company has established a comprehensive layout for liquid cooling solutions in data centers, launching products such as the Coolinside liquid cooling cabinet and various components for liquid cooling systems [2]. - The company aims to benefit from the increasing adoption of liquid cooling technology, with operators planning to implement liquid cooling in 10% of new data center projects in 2024 and over 50% by 2025 [2]. Financial Forecasts - The company maintains its profit forecasts for 2024-2026, expecting net profits of 540 million yuan, 700 million yuan, and 890 million yuan respectively, with corresponding price-to-earnings ratios of 32, 24, and 19 times [29][30]. - Revenue projections for the same period are 4.649 billion yuan in 2024, 6.143 billion yuan in 2025, and 7.749 billion yuan in 2026, indicating growth rates of 31.7%, 32.1%, and 26.1% respectively [3][29].