AI Infra #8：1Q26 机架电源与冷却更新；上调麦格米特与英维克评级

Equity ResearchMay 4, 2026 ASIA-PACIFIC | Electrical AI Infra #8 – 1Q26 Rack Power and CoolingUpdates; U/G Megmeet and Envicool We expect the AIDC rack power and cooling players to diversify in 2026 andonward, with names with overseas orders/exposures to outperform. Welike and U/G Megmeet given its fulfillment of rack power orders with Nvidiaand potential opportunities from ASIC since 1Q. We also U/G Envicool postrecent corrections on missed 1Q since we see accelerating growth startingfrom 2Q. Maintain BUY on Kstar, which is well positioned on the global UPS/HVDC ODM trend. 1Q26 results summaries. 1Q results for AIDC rack power and cooling players as well asthe feedback post results diversified, obviously. Mgmeet/Envicool/Kstar/Kehua reported +20/+26/+31/+18% sales growth and +7/-82/+25/+13% profit growth, respectively, in 1Q. Costinflation, shipping issue, FX loss, and fiercer competition in domestic market are the mainreasons to explain 1Q weak margins. Megmeet came ahead of expectation with its industrialpower segment delivering 66% yoy growth in 1Q. This includes its order fulfillment with Nvidiaabout rack PSU, power shelf, CAP shelf, etc. Megmeet (002851 CH, BUY) - NV Rack Power supplier with potential opportunities fromoverseas ASIC and local CSP. We expect Megmeet's sales and EPS growth to accelerate in2Q and 2H driven by the AIDC power and industrial automation. 1Q shipments were negativelyimpacted by the shipping chaos, which will be reflected in 2Q. In addition, the progress of AIDCrack power with Nvidia looks inspiring, leveraging on the company's comprehensive AIDC rackpower products (Figure 1). We have witnessed the mass deliveries to Nvidia's GB300 in 1Q,and mgmt appears to be even more optimistic on the certification of next gen Vera Rubinproducts, for which Megmeet has received the testing orders. This makes us comfortable tosay Megmeet should catch up with peers quickly in market share in next 1-2 years. We modelin 5/10-15/15-20% market share for Megmeet in global AIDC rack power market over 2026-28,which leads to 158% EPS CAGR over 2025-28E. We value Megmeet based on 30x 2031E PE,inline with global major peers, and discount back at 15% WACC, which gives us a new PT ofRmb165.14. U/G from Hold to BUY. Wetend to use future PE to valueMegmeet and Envicool because we tryto capture the companies' future growthfrom booming AIDC rack power and liquidcooling demand. Thisexplains why we raise the PT ofMegmeet and Envicool while we cut theearnings forecast in 2026 to factor in FXlossand margin headwinds.We focuson the company's future growth potentialcapability given two companies' uniquevalue chain position and sector's boomingdemand. Envicool (002837 CH, BUY) - Strong liquid cooling demand to release in 2H. 1Q missed onone-offs (impairment, FX loss, etc) and less overseas contribution. We expect the earningsto rebound starting from 2Q given the delayed revenue recognition from 2H25 and releaseddomestic orders. Mgmt appears to be more positive on their cooling business and hint stronggrowth in 2H along with the release of overseas orders. This also comes inline with the NvidiaVera Rubin's mass delivery pipeline, and Envicool supplies the MQD. Meanwhile, Envicool willbenefit from the full liquid cooled TPU with Google in 2H. We visited Envicool's new capacityin Zhongshan, Guangdong Province, for server cooling components incl. cold plate, CDU, QDand loop, and we walked away with more confidence. We believe Envicool's capacity has beenready for the mass production in 2H, riding on the booming industry trend of liquid cooling(~USD30bn in 2028 vs. ~USD10bn in 2025). We recommend Envicool in 2Q considering themass production trend in 2H and its unique value chain position. We model in 47% salesand 68% EPS CAGR for Envicool over 2026-29E. We use 30x forward PE on 2031E EPS, 20%discount to global leader, and discount back at 15% WACC, which gives us a new PT ofRmb118.42. U/G to BUY from HOLD. More comments on other peers incl. Kstar and Kehua Data overleaf. Jason Tan * | Equity Analyst Summary of Changes Kstar (002518 CH, BUY) - Riding on the rising opportunities from UPS/HVDC ODM in overseasmarket. Kstar’s growth outlook remains firmly driven by overseas data center and ESS businesses,underpinned by increasing international exposure and gradual product innovation. Overseas nowcontributes over 50% of group revenue, with data center accounting for ~60% of sales in 1Q.Overseas data center sales have exceeded domestic and margins are structurally higher thandomestic by ~4–5ppt, benefiting from ODM supply to global brands. Demand in Southeast Asia isaccelerating on the back of Chinese cloud vendors’ overseas expansion and global hyperscalers'investments, despite some near-term volatility from logistics and geopolitical disruptions. In ESS,overseas markets—particularly Europe, US and emerging regions—remain the core growth engine,with storage accounting for ~50% of the new energy segment and export