Shenzhen Envicool Technology Co.Ltd(002837) (002837)
In 2019, the market share of the company’s computer room temperature control products is 10%. We predict that the market scale of IDC temperature control system in China will reach 14.1 billion yuan / year in 2021 and 19.2 billion yuan / year in 2025. In the field of computer room temperature control, the company is the leader of computer room temperature control in China, providing full chain products for heat dissipation from heat source side to cold source side. The company’s market share of computer room temperature control equipment in China increased from 7.5% in 2016 to 10% in 2019, and the company’s market share ranked second in China in 2019. The company’s products have successively won the bid of China Mobile, Alibaba, Tencent, China Telecom Corporation Limited(601728) and other data center construction projects. Xspace unit can reduce pue to 1.13, xstorm system can achieve pue lower than 1.1, and the energy-saving effect is remarkable.
The scale of outdoor cabinet temperature control market has increased, and the company’s revenue has increased rapidly: according to the data of forward-looking Industry Research Institute, the scale of China’s communication outdoor cabinet air conditioning market will reach 3.3 billion yuan / year in 2022. According to the data of Huajing Industrial Research Institute, the global energy storage and temperature control market will grow to 8.464 billion yuan in 2025. According to the prediction of prospective industry research institute, the market scale of China’s charging pile will reach 240 billion yuan in 2025. The improvement of the number of charging piles and the acceleration of charging speed will drive the demand for temperature control equipment of charging pile cabinet. In 2020, the company launched a series of water-cooled units and applied them to various energy storage scenarios in batches. Customers include Sungrow Power Supply Co.Ltd(300274) , Byd Company Limited(002594) , Eltek, etc. From January to June 2021, the total revenue of the company’s cabinet business was 292 million yuan, a year-on-year increase of 62.2%, of which the operating revenue related to energy storage application was about 150 million yuan.
There is a large growth space for new energy vehicle air conditioning: with the continuous promotion of the electrification of buses and buses by national policies and the continuous decline of the cost of electric vehicles in the future, it is expected that there is still a large growth space for new energy buses in the future. The development of new energy bus industry will boost the demand for new energy bus air conditioning system. In 2018, the company merged with Shanghai Ketai to supply bus factories such as Byd Company Limited(002594) , Shentong, Nanlong and Yutong. At present, the products are expanding to special electric vehicles such as cold chain transport vehicles and heavy trucks.
The scale of rail transit air conditioning market will continue to increase with the expansion of urban rail investment: China’s urban rail transit is still in a period of rapid development. In 2020, Chinese mainland’s urban rail transit completed an investment of 628 billion 600 million yuan, a record high. In 2020, China’s rail transit air conditioning market will grow to 12 billion yuan. The whole system (software, hardware and control system) of the company’s rail transit temperature control products is self-developed, and the share of rail transit temperature control products ranks first in Shanghai Metro and Suzhou Metro. In addition to the above four fields, the company is developing layout in the fields of electric vehicle compressor, health environment control and electronic heat dissipation.
Investment suggestion: the company continues to explore new fields, and the growth of energy storage and temperature control products is strong. We estimate that the company’s operating revenue from 2021 to 2023 will be RMB 2.256 billion (+ 32.4%), RMB 3.055 billion (+ 35.4%) and RMB 4.212 billion (+ 37.9%) respectively; The net profit attributable to the parent company is expected to be 231 million yuan (+ 27.0%), 325 million yuan (+ 40.7%) and 437 million yuan (+ 34.6%) respectively. We give 55 times PE in 2022, corresponding to the target price of 53.41 yuan in 2022. For the first time, it is given a “Buy-A” investment rating.
Risk tips: market competition intensifies, 5g and data center construction is less than expected, policy implementation is less than expected, credit impairment risk and raw material price fluctuation
