Core Viewpoint - Jianyin International has raised the target price for Sanhua Intelligent Control (002050.SZ) from 49 RMB to 55 RMB based on a higher forecast P/E ratio of 48 times, up from 45 times [1] Group 1: Financial Performance - Sanhua Intelligent Control reported strong Q3 2025 results, with revenue, net profit, and core profit increasing by 13%, 44%, and 49% year-on-year, respectively [1] - Compared to Q2 2025, revenue, net profit, and core profit grew by 19%, 39%, and 35% [1] - Gross margin remained stable at 27.5%, while the expense ratio decreased by 2.8 percentage points to 12.3% in Q3 2025 [1] Group 2: Future Outlook - Jianyin International expects Sanhua's net profit to grow by approximately 30% in 2025 and about 20% in 2026 [1] - The traditional air conditioning industry is being driven by new demands in liquid cooling and battery storage [1] - Ongoing supply shortages and the company's technological reserves position Sanhua as a passive winner in this niche market [1] Group 3: Valuation and Ratings - The forecast P/E ratios for Sanhua's A-shares and H-shares in 2026 are 44 times and 33 times, respectively, which are considered relatively high [1] - Despite the high P/E ratios, strong fundamentals, A-share buyback commitments, and the upcoming launch of the Optimus V3 catalyst in Q1 2026 are expected to support the stock price in the medium term [1]