Envicool (002837.SZ) In-depth Investment Research Report: Technical Barriers and Growth Potential of the Liquid Cooling Leader

Based on the data and information I have obtained, I will now conduct an in-depth analysis of Envicool’s technical barriers and growth potential as a leading liquid cooling enterprise.

Envicool (Shenzhen Envicool Technology Co., Ltd.) is an A-share listed company focusing on precision temperature control and energy-saving equipment. Its products include liquid cooling units, cold plates, immersion liquid cooling, outdoor cabinet temperature control, etc., which are widely used in data centers, communication base stations, new energy and other fields [0].

Indicator	Data
Year-to-date increase	+277.05%
Latest closing price	110.59 yuan
Market capitalization	Approximately 107.9 billion yuan
5-day increase	+17.15%
20-day increase	+50.20%
60-day increase	+38.58%

: The above chart shows Envicool’s full-year stock price trend, trading volume, and distribution of price changes in 2025, indicating that it has undergone a significant value revaluation process.

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Barrier Dimension	Specific Content
Patent Layout	Has invention patents and utility model patents related to liquid cooling systems, covering core links such as cold plate design, immersion liquid cooling tank body, and pipeline system
Process Know-how	Liquid cooling systems involve complex processes such as flow channel design, welding technology, sealing technology, and uniform temperature control, requiring long-term accumulation
Customer Verification	Has entered the supplier system of top Internet manufacturers such as Alibaba, Tencent, Huawei, ByteDance, and the three major operators, with benchmark case endorsements
Full-chain Capability	Has integrated delivery capabilities from scheme design, core component manufacturing to system integration

Comparison Dimension	Envicool	Competitors
Technical Route	Cold plate + immersion dual routes	Some manufacturers only have a single route
Customer Coverage	Top Internet + operators	Mainly small and medium-sized customers
Production Capacity Scale	Leading scale of liquid cooling production lines	Relatively limited production capacity
R&D Investment	Sustained high R&D investment	Low R&D intensity

• High Barrier Field
  : Data center liquid cooling has extremely high requirements for reliability and energy efficiency ratio, requiring long-term technical accumulation and customer relationships
• Medium Barrier Field
  : Communication base station temperature control has relatively low entry thresholds and fierce competition
• Core Barriers
  : Top customer supplier qualification + large-scale mass production capability + full-life cycle service capability

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Driving Factor	Logic
AI Computing Power Boom	Large model training and inference have pushed the power density of data center single cabinets from 8-10kW to more than 30-100kW, making liquid cooling a rigid demand
Policy Promotion	Under the ‘Dual Carbon’ goal, PUE (Power Usage Effectiveness) requirements are becoming stricter, and liquid cooling can significantly reduce PUE to below 1.1
Stock Replacement	Upgrade and transformation demand for traditional air-cooled data centers
Overseas Expansion	Global data center construction is accelerating, and the overseas market space is broad

According to industry research institute data, the global data center liquid cooling market size is expected to:

• 2025: Approximately 200-300 billion yuan
• 2028: Expected to exceed 800-1000 billion yuan
• As a domestic leader, Envicool is expected to occupy a 15-20% market share

Business Segment	Growth Logic
AI Liquid Cooling	Benefiting from the deployment of NVIDIA GPUs and domestic AI chips, the penetration rate of liquid cooling is increasing rapidly
Energy Storage Temperature Control	New energy storage station construction is accelerating, and the penetration rate of liquid cooling temperature control is increasing
New Energy Vehicle Thermal Management	Demand for electric vehicle thermal management systems continues to grow
Overseas Business	Expand European and American data center customers to open the second growth curve

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Indicator	Data	Evaluation
Price-to-Earnings Ratio (P/E)	212.69x	Extremely high valuation
Price-to-Book Ratio (P/B)	32.03x	Overvalued
ROE	16.34%	Good
Net Profit Margin	8.69%	Above average
Gross Margin	Approximately 30% (estimated)	Good

According to the DCF model [0]:

Scenario	Intrinsic Value	Gap from Current Price
Conservative Scenario	11.21 yuan	-89.9%
Neutral Scenario	23.95 yuan	-78.3%
Optimistic Scenario	61.67 yuan	-44.2%
Probability-weighted Value	32.28 yuan	-70.8%

: The current stock price of 110.59 yuan significantly deviates from the DCF intrinsic value, and the market is trading the expected premium brought by the AI boom.

The latest financial report shows [0]:

• 2025 Q3 EPS: 0.19 yuan vs expected 0.25 yuan (-23.56% below expectation)
• 2025 Q3 Revenue: 1.45 billion yuan vs expected 1.70 billion yuan (-14.74% below expectation)

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Dimension	Assessment
Technical Barriers	Medium-High - Has first-mover advantage and customer resources in the liquid cooling field, but faces competition from manufacturers such as Huawei and Sugon
Growth Potential	Large - Driven by AI computing power + carbon neutrality, the liquid cooling penetration rate has broad room for improvement
Valuation Level	Extremely High - The current stock price has discounted future growth for many years
Investment Timing	Need to wait for valuation regression or performance verification

1. Valuation Correction Risk
   : The current PE exceeds 200x, and any underperformance may lead to sharp adjustments
2. Increased Competition
   : Manufacturers such as Huawei, ZTE, and Sugon are accelerating their layout in the liquid cooling field
3. Technical Route Risk
   : If a disruptive technical route emerges, existing technical accumulation may depreciate
4. Downstream Customer Concentration Risk
   : Top Internet manufacturers have strong bargaining power
5. Macroeconomic Risk
   : Data center Capex expenditure is affected by the economic cycle

• Short-term
  : Technical indicators show overbought risk (KDJ K value 86.7, D value 86.4), it is recommended to wait and see or reduce positions at high prices
• Medium-term
  : Can lay out at low prices when the valuation returns to a reasonable range (PE 50-80x)
• Long-term
  : As a core supplier of AI infrastructure, it has core asset allocation value

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[0] Gilin AI Financial Database - Envicool (002837.SZ) Company Overview, Financial Analysis, Technical Analysis and DCF Valuation Data (December 27, 2025)