Envicool(002837) KAIYUAN SECURITIES·2024-06-07 07:31Investment Rating - The investment rating for the company is "Buy" (maintained) [49] Core Viewpoints - The liquid cooling data center market is expected to maintain rapid growth, with a projected market size increase to 15.4 billion yuan in 2023, representing a year-on-year growth of 53.2% [16] - The company is a leader in the liquid cooling industry, having developed a comprehensive self-research and production capability across the entire liquid cooling chain, which enhances its competitive strength [41][48] - The company has established a solid customer base, with its temperature control products recognized by major clients such as Huawei and ZTE [52][61] Summary by Sections Company Overview - The company has been deeply involved in temperature control for data centers for over 15 years, mastering various cooling technologies [31] - It has expanded its product offerings from traditional air cooling to include liquid cooling solutions, which are increasingly favored due to rising power consumption in servers [21][31] Market Potential - The rapid development of AI and high-performance computing is driving the demand for liquid cooling solutions, as traditional air cooling methods are becoming inadequate [16][60] - The liquid cooling market is projected to grow at a compound annual growth rate (CAGR) of 59% from 2022 to 2027, with the market size expected to exceed 100 billion yuan by 2027 [16] Financial Performance - The company's revenue is projected to grow from 2.923 billion yuan in 2022 to 8.717 billion yuan by 2026, with a year-on-year growth rate of 31.2% in 2022 and 20.7% in 2023 [53] - The net profit attributable to shareholders is expected to increase from 280 million yuan in 2022 to 947 million yuan by 2026, reflecting a strong growth trajectory [53] Product Development - The company has launched several innovative liquid cooling solutions, including the XFluid and XGlacier series, which cater to varying thermal density requirements [35][41] - It has developed a full-chain liquid cooling solution called Coolinside, which integrates components from the server side to the cooling source, enhancing system efficiency and reliability [27][41] Competitive Advantage - The company has a strong R&D capability, with a focus on developing proprietary cooling fluids and intelligent control systems that improve energy efficiency and reduce leakage risks [23][45] - Its comprehensive product matrix allows it to serve various market segments, including data centers, telecommunications, and industrial applications [72]