The Resurgence of Liquid‑Cooling Servers and Its Impact on Envicool Technology

The Chinese equity market experienced a pronounced rally in late December 2025, driven primarily by the renewed enthusiasm for liquid‑cooling server technology. Within this sector, Shenzhen Envicool Technology Co. Ltd. (股票代码 002837), a specialist in temperature‑control systems for data centres, telecom sites, and electric vehicles, benefited from the broader trend, even though its shares did not move as dramatically as some of its peers.

Market‑wide Momentum for Liquid‑Cooling Concepts

On December 23 2025, multiple market reports highlighted that the liquid‑cooling server concept had “repeatedly revived.” This surge was reflected in the performance of several listed names:

  • 奕东电子 (Yidong Electronics) surged more than 13 % and hit a historical peak.
  • 英维克 (Envicool Technology) rose nearly 7 % and also achieved a new all‑time high.
  • 同飞股份 experienced a 20 % limit‑up, setting a fresh record.
  • Other participants such as 申菱环境, 博威合金, 捷邦科技, 川环科技, and 思泉新材 posted notable gains.

The collective enthusiasm was fueled by the growing demand for efficient cooling solutions in high‑density data‑centre environments, where liquid cooling offers superior thermal performance compared to conventional air‑cooling systems.

Envicool Technology’s Performance

Envicool Technology’s share price closed at 91.13 CNY on December 18, 2025, a figure that sits comfortably between its 52‑week high of 99.44 CNY (December 17, 2025) and its 52‑week low of 21.6615 CNY (April 8, 2025). With a market capitalisation of approximately 88.99 billion CNY, the company commands a sizeable footprint within the industrial machinery sector.

Despite the sector‑wide rally, Envicool’s price‑earnings ratio of 178.76 indicates a valuation that remains high relative to earnings. This is not unexpected for a firm whose revenue streams are still expanding in a rapidly evolving technology space. The recent 7 % price appreciation underscores investor confidence in the company’s product portfolio and its potential to capture a larger share of the liquid‑cooling market.

Shareholder Activity

On December 22, 2025, Envicool announced a planned share‑holding reduction by Shanghai Bingyuan Xu Equity Investment Development Center (有限合伙). The shareholder intends to divest up to 5,494,900 shares—approximately 0.56 % of the company’s total issued shares—through either concentrated auction or block‑trade mechanisms. While this move represents a modest dilution, it is unlikely to materially influence the company’s capital structure or its strategic direction.

Strategic Implications

The surge in liquid‑cooling server stocks reflects a broader industry shift toward energy‑efficient cooling solutions, driven by the proliferation of cloud computing and AI workloads. Envicool’s specialization in designing and manufacturing cooling products for a diverse array of applications—data centres, outdoor cabinets, telecom sites, industrial plants, and electric vehicles—positions it well to benefit from this transition.

Nevertheless, the company’s high valuation metrics suggest that the market remains cautious. Investors may be weighing the company’s growth prospects against the competitive landscape, which includes numerous domestic and international players in the thermal management arena.

Conclusion

In the context of a sector‑wide rebound for liquid‑cooling technologies, Envicool Technology has managed to secure a new all‑time high while maintaining a solid market presence. The planned share‑holding reduction by a key shareholder adds a layer of transparency to the company’s governance. As the industry continues to evolve, Envicool’s ability to innovate and expand its product offerings will be pivotal in sustaining its market leadership and justifying its premium valuation.