Today, A-share liquid cooling concept stocks witnessed a collective downturn. Shares of Yinweike and Sacred Sun plummeted to their daily limit, while numerous other stocks in the sector also experienced substantial declines. In terms of news, Yinweike, a frontrunner in the liquid cooling industry, unveiled its performance report. It revealed a 26.03% year-on-year revenue growth for the first quarter of 2026. However, its net profit plummeted by 81.97% compared to the same period last year. Citi highlighted that the company has missed market expectations for three consecutive quarters. The market has overlooked the pressures stemming from its heavy reliance on small-scale businesses, intensified domestic price competition, and the entry of new competitors. Considering valuation factors, Citi revised its target price upward from 50 yuan to 60 yuan, yet reaffirmed its sell recommendation.
