Analysis of Yinlun Co., Ltd.'s Acquisition of Shenlan Co., Ltd. to Strengthen Thermal Management Business

The acquisition of Shenlan Co., Ltd. by Yinlun Co., Ltd. (002126.SZ) is currently

[1]. This strategic initiative is regarded as a key step for Yinlun to fully master liquid cooling technology [2].

• Focuses on industrial/commercial air conditioner controllers and drives
• Gross profit margin up to ~48%, net profit margin ~25%
• H1 2024 revenue ~71.52 million yuan
• Holds a key position in data center liquid cooling controllers (core CDU components) [2]

Yinlun excels in “heat exchange” hardware manufacturing, while Shenlan leads in “controller/drive” software and control. Post-acquisition, Yinlun will upgrade from component sales to system sales, offering integrated “hardware + control” CDU solutions to significantly boost average customer price and competitiveness [2].

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Yinlun’s “digital energy business” (including liquid cooling) shows strong growth [2]:

Indicator	2024	H1 2025
Revenue	1.027 billion yuan	Nearly 700 million yuan
YoY Growth	47.44%	58.94%
% of Total Revenue	~8%-10%	-

• From late 2024 to early 2025, the company won large orders for 301 and 193 liquid cooling systems for computing centers
• Cumulatively addressed over 500MW of computing power heat dissipation needs
• Key customers include ByteDance, Baidu, and other leading enterprises [2]

• Liquid cooling plate: No.2 in China
• Heat exchanger: No.1 in China [2]

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The thermal management of Tesla’s humanoid robot faces major technical challenges [3]:

• Battery Life Bottleneck:
  Optimus uses a 2.3kWh battery with a battery life of only ~1.5-2 hours
• Heat Dissipation Difficulty:
  Humanoid robots have strict requirements for power sources (high energy density, safety, durability, low cost)
• Technology Iteration:
  Zhongqing Robot’s T800 features the industry’s first high-performance solid-state battery for humanoid robots, extending battery life to 4-5 hours with an active heat dissipation system for all leg joints [4]

According to industry analysis, the humanoid robot industry is at a critical turning point from lab R&D to commercialization [3]:

• 2026: Optimus V3 is expected to launch, entering rhythmic production verification
• 2027: Start production of V4.0
• Tesla plans to build a 1 million-unit/year humanoid robot production line at its Fremont factory

With the AI computing power boom (e.g., NVIDIA GB300 high-power chips), liquid cooling penetration will rise sharply. Institutions predict Yinlun’s digital energy revenue share may exceed 30% by 2028 [2].

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Based on DCF model, Yinlun’s valuation range is as follows [5]:

Scenario	Valuation	Increase from Current Price
Conservative	$56.12	+49.8%
Base	$75.94	+102.7%
Optimistic	$125.33	+234.6%
Probability Weighted	$85.80	+129.0%

Indicator	Value
Market Cap	$30.94B
Current Price	$37.46
P/E (TTM)	36.69x
P/B (TTM)	4.58x
ROE	13.05%
Net Profit Margin	5.85%
Beta	0.70[5]

As of December 26, 2025 [5]:

• Trend:
  Sideways consolidation, no clear direction
• Trading Range:
  [$34.84, $38.22]
• MACD:
  No crossover (bullish bias)
• KDJ:
  Bullish signal

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1. Technical Synergy:
   • Yinlun (hardware: heat exchanger) + Shenlan (software: controller) → integrated “hardware + software” solution
   • Full-chain services from components to systems
2. First-Mover Advantage:
   • No.2 in liquid cooling plate, No.1 in heat exchanger in China
   • Existing leading customers (ByteDance, Baidu)
3. High-Growth Track:
   • AI computing power drives liquid cooling demand
   • Humanoid robot industry enters commercialization phase

1. Transaction Uncertainty:
   • Acquisition still under regulatory review → uncertainty
2. Gross Margin Gap:
   • Shenlan’s 48% gross margin vs Yinlun’s lower traditional business margin
   • Profitability improvement post-integration needs verification
3. Market Competition:
   • Competitors like Envicool, Shenling Environment also in liquid cooling
   • Continuous R&D needed to maintain leadership
4. Early-Stage Market:
   • Tesla Optimus mass production still takes time
   • Thermal management specs/tech routes not fully determined

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• Acquire Shenlan to fill controller gaps → integrated liquid cooling system capability
• AI computing power boom drives rapid liquid cooling demand
• Humanoid robot industry brings long-term incremental market
• DCF valuation shows large current price discount

• Acquisition approval
• Continuous liquid cooling order wins
• Breakthrough in humanoid robot thermal management

• Acquisition approval risk
• Integration underperformance
• Intensified competition
• Slow humanoid robot commercialization

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[1] Caihua She - Yinlun’s Acquisition of Shenlan Under Regulatory Review (https://www.finet.com.cn/news/694ccd205a7712fdbfdf17de.html)
[2] Caifuhao - Entering AI Liquid Cooling Track (https://caifuhao.eastmoney.com/news/20251226230748999992140)
[3] Wall Street CN - Tesla Optimus Development & Thermal Management Challenges (https://wallstreetcn.com/articles/3761537)
[4] NE Times - Solid-State Battery & Heat Dissipation for Humanoid Robots (https://ne-time.cn/web/article/37372)
[5] Jinling AI - Yinlun Financial Analysis & DCF Valuation Data