Incident: The company received an order for liquid cooling and cooling systems for BTB Computing Power Center.

The company obtained a breakthrough in orders for liquid cooling systems for data centers. According to the company's announcement, Kaishan Yinlun, a holding subsidiary, has signed a “Product Purchase and Sale Contract” with a data center overall solution service provider. Kaishan Yinlun will provide customers with 108 sets of liquid cooling and cooling systems for the BTB Computing Power Center, which will be paid on schedule according to customer requirements. This order is an important breakthrough for the company in the field of data center liquid cooling, and marks that the company's technical capabilities and market competitiveness in the field of data center thermal management have been successfully recognized by customers.

Liquid cooling for data centers has broad prospects, and it is expected that the company will develop new orders in the future. In the field of mining machinery, as ASIC chip process technology continues to advance, the computing power of mining machines has increased rapidly. Traditional air cooling technology is difficult to meet the growing demand for heat dissipation, and liquid cooling technology has advantages such as efficient heat dissipation, low noise, high reliability, and enhanced equipment overclocking potential, which helps reduce the overall energy consumption of computing power centers and meet environmental regulatory requirements; liquid cooling technology has become an important technical direction in the mining machinery industry, and it is expected that its penetration rate in the mining machine field will continue to increase. In addition to this, liquid cooling technology is also an effective solution to cooling problems in data centers, edge computing servers, etc., and its application prospects are very broad. The company has been developing data center cooling systems for several years, successfully developing products such as immersive liquid cooling equipment for data center servers and cooling modules for data center generators. As the application of liquid cooling technology in the data center field continues to advance, it is expected that the company will develop more new customers and new projects in the field of data center thermal management in the future, opening up a new growth curve.

The digital and energy third-curve business is expected to become an important growth pole. In recent years, the company has continued to increase R&D investment in the third curve business of digital and energy thermal management. Focusing on the layout and development of UHV power transmission and transformation, geothermal power generation, energy storage, liquid cooling overcharging, central air conditioning, household heat pump air conditioning, data centers, etc., the company has launched a series of products such as energy storage liquid-cooled air conditioners, liquid cooling plate modules, high-pressure quick-charging liquid cooling modules, and substation equipment cooling modules. As the company's business orders for heat pumps, air conditioning, energy storage, etc. are gradually put into production, it is expected that the digital and energy sector will maintain a high growth rate in the next few years, providing the company with greater growth flexibility.

EPS is predicted to be 1.05, 1.42, and 1.77 yuan respectively in 2024-2026. The comparable company is a company related to the automotive heat exchanger and new energy vehicle industry chain. The comparable company maintains the 24-year PE average valuation of 21 times that of the comparable company, and the target price is 22.05 yuan, maintaining the purchase rating.

Risk warning

The amount of support for thermal management systems for new energy vehicles fell short of expectations, the amount of support for industrial and civil businesses fell short of expectations, and profits from overseas factories fell short of expectations.