\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 018 Guangdong Shenling Environmental Systems Co.Ltd(301018) )
Matters:
The total amount of special shares to be issued by the company (excluding the total number of special shares to be issued by the company in the second phase of the announcement) does not exceed RMB 72000, and the net amount of special shares to be issued to the company in the second phase of the project (excluding the total amount of special shares to be issued to the company in the second phase of the announcement) does not exceed RMB Guangzhou Improve Medical Instruments Co.Ltd(300030) 0).
Guoxin communication view:
The temperature control track has a wide space, and liquid cooling is expected to become the mainstream technology direction in the medium and long term. With the acceleration of computing power upgrading, greening and intellectualization, liquid cooling technology has the advantages of good cooling effect, good energy-saving effect and sustainable effect in different seasons and environments. It can effectively solve the problems of uneven heat dissipation and high energy consumption. It has a wide application prospect in data center, energy storage, chip and heat dissipation in the future. Liquid cooling represents the medium and long-term technical direction to a certain extent.
The company’s fixed increase project helps to improve the large-scale production capacity of liquid cooling products, enhance the competitive strength and lay the foundation for medium and long-term business development. Considering that the number of shares currently issued has not been determined, we temporarily maintain the profit forecast. It is estimated that the company’s revenue from 2021 to 2023 will be RMB 1.89/24.8/3.26 billion respectively, and the net profit attributable to the parent company will be RMB 170 / 2.3/310 million, with a year-on-year increase of + 38% / 35% / 34%, corresponding to EPS of RMB 0.72/0.97/1.3 (excluding the impact of the proposed increase), and corresponding to PE of current stock price of 31 / 23 / 17 times.
Comments:
Fixed increase plan: no more than 72 million shares will be issued and no more than 800 million yuan will be raised
The company plans to issue no more than 72 million shares to specific objects (no more than 35 persons). The total number of shares of the company before the issuance is 240 million shares, and the total number of shares after the issuance is expected to be no more than 312 million shares; The fund-raising shall not exceed 800 million yuan.
Fixed increase investment direction: it is mainly for the advanced refrigeration solutions of data center and energy storage to layout the production capacity in advance
The main investment directions of this fixed increase include the intelligent manufacturing project of intelligent temperature control equipment in the field of new infrastructure and the R & D and manufacturing base project of professional special environmental system (phase II). The company will further increase the development of applicable products in the field of data center liquid cooling units, energy storage and temperature control and other emerging downstream applicable products, and improve the automation and intelligence level in the production process, which will help the company improve the large-scale intelligent manufacturing capacity, fully realize lean production, realize large-scale economic benefits, and continuously reduce costs and increase efficiency for future development.
Under the background of green + Intelligent upgrading, the arrival of 100 billion space is accelerated, and liquid cooling is expected to become a medium and long-term development trend
Temperature control technology is widely used in many scenarios such as industry, communication, consumer electronics, new energy and power batteries to ensure the normal and stable operation of raw devices such as batteries and the stability of industrial environment. The driving forces for the vigorous development of the temperature control industry mainly include: 1) increasing the installed capacity of new energy and opening the blue ocean market of energy storage and temperature control; 2) Under the background of stricter pue audit of data center, temperature control has become the focus of upgrading and transformation; 3) The penetration rate of new energy vehicles continues to increase, driving the volume and price of vehicle thermal management to rise simultaneously; 4) The upgrading of 4G mobile phones to 5g has driven the increase of unit value by 3-4 times. Under the background of continuous upgrading of thermal density and intelligence, enterprises have upgraded from products to services, further opening up imagination space.
Liquid cooling is expected to become a medium and long-term development trend. We believe that with the acceleration of computing power upgrading, greening and intellectualization, liquid cooling technology has the advantages of good cooling effect, good energy-saving effect and sustainable effect in different seasons & environments. It can effectively solve the problems of uneven heat dissipation and high energy consumption. It has a wide application prospect in data centers, energy storage, chips and heat dissipation in the future, representing the medium and long-term technical direction. According to the data of CCID Consulting, it is estimated that the market scale of China’s liquid cooling data center will exceed 120 billion yuan in 2025, with an average annual compound growth rate of 25% from 2021 to 2025, and the proportion of cold sector and submerged liquid cooling will reach 59% / 41% respectively. According to the prediction of the future ne era, the liquid cooling penetration rate of new energy vehicle power battery is expected to increase to 80% in 2025.
Investment suggestion: layout the large-scale production capacity of liquid cooling, improve the long-term competitive advantage and maintain the “buy” rating
We believe that this project of the company will help to improve the large-scale production capacity of liquid cooling products, open the first mover advantage and lay the foundation for medium and long-term business development. Considering that the number of shares currently issued has not been determined, we temporarily maintain the profit forecast. It is estimated that the company’s revenue from 2021 to 2023 will be RMB 1.89/24.8/3.26 billion respectively, and the net profit attributable to the parent company will be RMB 170 / 2.3/310 million, with a year-on-year increase of + 38% / 35% / 34%, corresponding to EPS of RMB 0.72/0.97/1.3 (excluding the proposed increase scheme), and corresponding to PE of current stock price of 31 / 23 / 17 times.
Risk tips
The profitability of the company will be affected by the price fluctuation of copper and lithium raw materials. If the price of raw materials increases, the gross profit margin of the company will be affected; The epidemic caused the shipment volume to be lower than expected; The implementation of fixed increase projects was less than expected.
