Zhe Jiang Kangsheng Co Ltd

On the morning of August 14, the liquid cooling server concept sector was active. Jones Tech hit the 20 percent daily limit up, Aihua Group and Kangsheng Co. also hit limit up, while Jintian Copper, Siquan New Materials, and Yidong Electronics followed higher. On the news front, China's first national standard for data center liquid cooling, GB/T48023-2026 Technical Specification for Cold Plate Liquid Cooling Systems in Data Centers, led by Sugon Data Energy under Sugon, was officially approved and released, and will take effect on February 1, 2027. The standard systematically regulates technical requirements and testing methods for cold plate liquid cooling systems and key components for the first time, covering the entire process from system design, component requirements, hydraulic calculations, testing and verification, to deployment and operation and maintenance. Guotai Haitong Securities analysis pointed out that generative AI and large model training are driving server rack power density steadily higher, traditional air cooling is gradually hitting physical limits, and liquid cooling has shifted from an alternative for high-performance computing to a core support for next-generation computing infrastructure. China continues to tighten PUE control indicators for data centers, with new large and ultra-large data centers required to gradually reduce PUE to below 1.3, and energy-saving policies are shifting from advocacy to mandatory access constraints, forcing intelligent computing centers to increase liquid cooling deployment. Multiple institutions view the third quarter of this year as a watershed for industry performance. Zheshang Securities judges that large-scale shipments of Nvidia VR200 cabinets are the core driver, and upstream component makers are expected to receive concentrated batch orders in the third quarter. Overseas leaders' earnings also released positive signals. Vertiv reported second-quarter revenue of 3.274 billion US dollars, up 24 percent year on year, adjusted operating profit jumped 51 percent year on year, and backlog reached 15 billion US dollars. The company raised its full-year guidance and said liquid cooling order demand is strong.