Initiation of Coverage Zhejiang Yinlun Machinery: BESS, IDC liquid cooling, and power generation businesses gaining traction; initiate at Buy

研报英文原文证据摘录

Initiation of Coverage Zhejiang Yinlun Machinery: BESS, IDC liquid cooling, and power generation businesses gaining traction; initiate at Buy

o % ch Cons.

and battery makers. We forecast a 15% 2026-30 revenue CAGR for auto thermal

12/26E - 1.42 - 1.46

management segment, based on: 1) rising global auto electrification; 2) a solid client

12/27E - 1.97 - 1.86

base and modular supply lifting CPV; 3) fulfilment of overseas orders. 12/28E - 2.58 - 2.44

Digital and energy: accelerating monetisation; 46% of 2030E gross profit Nora Min

AnalystLeveraging the technology/client base from auto, Yinlun has entered digital and energy

S1460518050001

segments, focusing on rapidly growing ESS/IDC liquid cooling/power generation.

nora.min@ubs.com

Entering ESS thermal management with existing products, it took the lead in riding the +86-21-3866 8905

sector ramp. With the trend of high-power-density IDCs, Yinlun is accelerating its liquid

Jenny Wangcooling solutions with plate heat exchangers certified by Google. Yinlun broke into

Analyst

power generation via its long-term partnership with Caterpillar. It has secured orders for

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aftertreatment and cooling modules for gas and diesel gensets. We expect Rmb12.3bn jenny-zb.wang@ubs.com

segment revenue in 2030E, implying a 48% 2026-30E CAGR; blended GPM should rise +86-21-3866 8837

from 19.0% in 2026E to 21.6% in 2030E as the mix of this high-margin segment rises.

Valuation: price target of Rmb72.00; Buy rating

Our DCF-based PT (WACC of 8.7%) implies 36.5x 2027E PE, above its 3-year average

and close to the average of auto thermal management peers who are entering emerging

sectors, reflecting its progress in the digital and energy segments. Potential catalysts are: