Among just six stocks that doubled in August, Seagull Co., Ltd. stands out as one of them. Surging from 11.15 yuan at the end of July to 24.40 yuan by the end of August, this cooling tower manufacturer saw its share price climb over 118% in a single month.
In response to the dramatic price surge, Seagull issued an announcement on September 1 regarding unusual trading activity, making a clear effort to cool market sentiment. The notice revealed that revenue from data center cooling towers accounts for less than 1% of total revenue, and no revenue has yet been generated from nuclear power sector cooling tower operations. It also highlighted the company's elevated valuation and explicitly disclosed that its controlling shareholder is in the process of reducing their stake.
However, in the semi-annual report released on August 28, the company struck a much more optimistic tone, discussing how cooling towers serve as key equipment in the primary side of data center liquid cooling systems, presenting a new growth driver for the business.
The optimistic outlook
In its interim report, Seagull detailed that the data center liquid cooling system consists of two parts: the primary side (outdoor side) and the secondary side (indoor side). The primary side refers to the circulating water system connecting the cooling tower to the CDU (coolant distribution unit), whose core function is to efficiently transfer heat from the circulating coolant in the loop to the external environment, thereby ensuring stable and continuous operation of the liquid cooling system.
The company believes that as the critical link connecting internal heat exchange in the server room with external heat dissipation, regardless of which liquid cooling technology is adopted on the secondary side, cooling towers are essential equipment for achieving primary side circulation. Their deployment scale and importance are expected to grow significantly as liquid cooling penetration rates rise.
Seagull noted that some of its related product series under development have already obtained U.S. CTI and FM certifications, and the company is actively advancing market promotion with favorable initial feedback. The company has developed a matrix of three key in-development product lines in the data center liquid cooling sector, systematically engineered to meet requirements for uninterrupted year-round operation, high heat dissipation density, and stringent water conservation and environmental standards. These products are designed to flexibly adapt to different climate zones and customer needs, providing efficient, reliable, and green cooling solutions aligned with data center demands for reducing PUE (Power Usage Effectiveness).
The company's analysis indicates that the rapid expansion of liquid cooling demand in data centers will drive increasing demand for cooling equipment. It plans to continue technological R&D and customer development in this area, positioning the business as a new growth engine for the company.
Dialing back expectations
As the share price continued its upward trajectory, Seagull clarified in its unusual trading activity announcement that its main downstream clients are in sectors such as petrochemical and thermal power. In the first half of 2026, revenue from data center cooling tower operations accounted for less than 1% of total revenue, a minimal amount. Revenue from nuclear power sector cooling tower operations has not yet materialized and does not significantly impact company performance, with related business prospects remaining uncertain.
Additionally, the company disclosed that on July 4, 2026, controlling shareholder Jin'ao Da announced a reduction plan, intending to sell an aggregate of no more than 3% of the company's total shares through centralized bidding and block trades within 90 days following 15 trading days from the announcement date. As of August 15, Jin'ao Da had already reduced its holdings by 2.8549 million shares, and the plan has not yet been fully executed.
Data shows that from August 28 to 31, publicly listed trading seats saw net purchases of 20.038 million yuan, though the composition showed clear divergence. On the buying side, the headquarters of Guotai Haitong led with purchases of 102 million yuan, followed by Huaxin Lujiazui with 54.48 million yuan in purchases—these seats are typically associated with hot money traders. On the selling side, dedicated institutional seats recorded net sales of 4.4091 million yuan, while Goldman Sachs China sold a net 28.94 million yuan.
In terms of valuation, according to data published by China Securities Index Co. on August 28, Seagull's static P/E ratio stood at 82.82 times, compared to 42.03 times for the general equipment manufacturing industry in which the company operates. The company's trailing P/E ratio was 80.42 times, versus 42.78 times for its industry peer group.
Financial reports show that as of June 31, 2026, Seagull generated revenue of 796 million yuan, up 2.73% year-over-year; net profit attributable to parent shareholders reached 39.3285 million yuan, up 12.75% year-over-year. Total orders on hand amounted to 3.629 billion yuan, an increase of 17.77% year-over-year, of which data center-related orders on hand reached 457 million yuan, representing a 461.38% increase from the end of last year. As of the close on September 1, Seagull's market capitalization was approximately 10.9 billion yuan.
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