Thermal Management & Liquid Cooling

Auras is a Taiwanese thermal-management vendor shifting from legacy air cooling to higher-value AI-server liquid cooling, with 2025 revenue up 47.6% to TWD 23.28 billion. The mix shift is real (2026 Q1 liquid-cooling revenue passed 55% and gross margin reached 29.7%), but 2025 operating cash flow turned negative and the stock near 30.6x trailing earnings already discounts much of the 2026-2027 ramp. Rating Hold: genuine liquid-cooling share gains are visible, yet a wide margin of safety only opens below roughly TWD 690.

Envicool is a full-chain local Chinese liquid-cooling systems supplier serving data center and energy-storage thermal control, liquid-cooling components, and room-level solutions. Revenue reached RMB 6.068 billion in 2025, up 32.23% year over year, but net profit attributable to shareholders rose only 15.30%, operating cash flow of RMB 157 million was far below RMB 522 million in net profit, and the static P/E was about 161x. Research rating Watch: liquid-cooling demand is visible, but neither cash flow nor valuation offers a margin of safety.

Asia Vital Components is the world's largest system thermal solutions manufacturer and a core liquid-cooling supplier for Nvidia AI servers. FY2025 revenue exceeded NT$100 billion with YoY growth of 95%, EPS reached NT$49.17, and Q1'26 EPS hit a record NT$20.17, confirming real acceleration. Report rating Watch: a high-quality AI liquid-cooling leader, but the stock already prices in much of the 2026-2027 upside while short-term momentum has begun to show cracks.