[Click eStock] "Autec Re-Evaluated as a 'Thermal Management Company' Embracing AI Data Center Liquid Cooling"

A new analysis suggests that the corporate value of Autec could be newly highlighted as the heatwave coincides with the expansion of investments in AI data centers. In addition to seasonal air conditioner demand, the company is securing new growth engines such as heat pumps and data center liquid cooling, raising the prospect that it could be re-evaluated as a comprehensive thermal management company, rather than a simple HVAC firm.

Lee Joonseok, a researcher at Hanyang Securities, stated, "The core of the company is that its thermal management technology connects to the heatwave, heat pump, and data center liquid cooling businesses," adding, "Autec is growing into a thermal management solutions company that covers the prolonged heatwave, heat pump policies, and the expanding AI data center liquid cooling market."

Autec grew based on the manufacturing of special-purpose vehicles, and in 2011, it acquired Carrier Air Conditioner, focusing on expanding its heating, ventilation, and air conditioning (HVAC) business. Currently, the company operates mainly through Autec Carrier and Autec Otis Parking Systems, and in the first quarter of this year, more than 80% of its consolidated sales of 163 billion won came from HVAC and refrigeration businesses. In March this year, the company issued 15 billion won worth of bonds with warrants (BW) to repay borrowings and expand its stake in Autec Carrier, thereby improving its financial structure.

The key variable driving short-term performance is the heatwave. As record-breaking heatwaves continue in Europe and Korea, demand for cooling is expected to expand, increasing the likelihood of improved peak season results for Autec Carrier, which operates air conditioner and HVAC businesses.

Researcher Lee explained, "Autec Carrier, as a major player in air conditioner and HVAC, can absorb peak season cooling demand into its results during prolonged heatwaves."

The heat pump is cited as a mid- to long-term growth driver. The United States and Europe are expanding the adoption of heat pumps as a key decarbonization technology for the building and industrial sectors, while Korea has also announced a plan to supply 3.5 million units by 2035. Autec Carrier is expanding its product lineup of heat pump boilers and refrigeration units, and is expected to benefit from these policies.

Researcher Lee analyzed, "While the heatwave is a short-term performance momentum, the heat pump serves as a mid- to long-term growth axis, and Autec could be re-evaluated from a seasonal HVAC company to a thermal management company benefiting from policy support."

Data center liquid cooling was identified as a key variable that could enhance corporate value. With the spread of AI servers, data center cooling is shifting from traditional chiller-based systems to direct liquid cooling (DLC) at the server rack and chip level.

Autec Carrier possesses existing chiller products such as centrifugal chillers and air-cooled heat pump refrigerators, and has a record of supplying to Hana Financial Group's integrated data center. Furthermore, the CDU 65LL system, which is being jointly developed by the global Carrier and Strategic Thermal Labs, has been registered as "Sample Ready" on the NVIDIA Marketplace, raising expectations for commercialization.

Researcher Lee evaluated, "Until now, heatwaves and heat pumps have highlighted performance, but data center liquid cooling is a structural variable that can change valuation," adding, "Autec could become the biggest beneficiary in Korea's data center liquid cooling market."

This content was produced with the assistance of AI translation services.