Incident: According to the company's public account, a new product - Battery PACK+PCS industrial and commercial variable frequency liquid cooling unit - was successfully launched for the power and capacity configurations of mainstream energy storage products in the industrial and commercial 125 kW/260 kWh market.

Comment: The dual-circuit liquid cooling design achieves fine temperature control to ensure that the energy storage system remains in an optimal state:

The new battery PACK+PCS industrial and commercial liquid cooling unit uses an advanced dual-circuit liquid cooling design to achieve independent cooling of the battery PACK and PCS. This means that the two cooling systems can perform precise temperature control according to the different thermal characteristics of the battery PACK and PCS systems, improving cooling efficiency while also enhancing the stability and safety of the system, thereby ensuring that the energy storage system can maintain an optimal working state under various operating conditions.

Introducing FreeCooling technology, it relies on natural cold sources to complete cooling tasks:

Natural cooling is the use of an outdoor cooling source such as air or water to cool the data center heat source, replace or partially replace mechanical cooling. According to the medium, it can be divided into air side and water side, and can be divided into direct use and indirect use according to the method of use. The company introduced FreeCooling (natural cooling) technology into battery PACK+PCS industrial and commercial variable frequency liquid cooling units. When the ambient temperature is suitable, the unit can automatically switch to FreeCooling mode, consumes almost no additional electricity, and can efficiently complete cooling tasks by relying on natural cooling sources.

Overall improvement in product service life, industrial noise, energy efficiency ratio, etc., improving market competitiveness:

The birth of the new battery PACK+PCS industrial and commercial variable frequency liquid cooling unit marks another innovation of the company in the field of energy storage liquid cooling technology. The unit has a service life of up to 15 years. Using a quiet design, the working noise is as low as 70dB, and the space occupied by the temperature control system is saved; in addition, the unit uses a new environmentally friendly refrigerant, and the overall energy efficiency ratio reaches 4.5 or more. While reducing operating costs, it also improves the overall performance of the energy storage system, reduces the carbon footprint, and conforms to the global trend of sustainable development. The product provides strong support for customers' industrial and commercial energy storage solutions with excellent year-round energy efficiency and stable and reliable operation performance.

Profit forecast, valuation and rating: Based on the company's 24Q1 operating performance and considering the slowdown in the growth rate of the energy storage industry, we lowered the 24-25 net profit forecast and added a 26-year profit forecast. The company's net profit for 24-26 is 2.44 (23% reduction) /3.16 (28% reduction) /0.407 billion yuan, respectively. The current stock price is 1.45/1.88/2.41 yuan for EPS, respectively, and the corresponding PE is 17/13/10 times. Considering that the company continues to develop various industries such as energy storage and data center temperature control, and the liquid cooling penetration rate continues to increase, we are optimistic about the company's future growth and maintain a “buy” rating.

Risk warning: The risk that the energy storage industry will fall short of expectations, and the risk of increased competition in the energy storage temperature control industry.