Huatai Securities: Global cooling demand upgrades open up new space for HVAC.

Huatai Securities pointed out that the global air conditioning industry is undergoing a value revaluation from "cyclical consumption" to "long-term cooling infrastructure". On the demand side, global warming, urban heat islands, income increases, and increased penetration of emerging markets are driving household and commercial air conditioning from optional consumption to gradually becoming a rigid demand; on the supply side, environmental refrigerants, variable frequency energy saving, heat pumps, smart control, liquid cooling in data centers, and other technological iterations are driving the HVAC industry into a new cycle of equipment upgrades. Huatai Securities believes that the opportunities for Chinese HVAC companies lie not only in expanding traditional export market share, but also in extending from advantage product categories such as window units and split systems to high-value segments such as heat pumps, central air conditioning, data center cooling sources, and liquid cooling systems relying on manufacturing costs, supply chain efficiency, overseas production capacity, and product upgrade capabilities.