Group 1 - The core viewpoint of the report is that Huahong Securities has given a "buy" rating to Sanhua Intelligent Control (002050.SZ) based on its steady performance and growth prospects [1] - The company is experiencing stable growth in its dual main businesses, which contributes to its robust performance [1] - Strategic expansion into emerging sectors such as bionic robotics and energy storage is expected to enhance future growth potential [1] Group 2 - The report highlights potential risks including adverse macroeconomic changes, lower-than-expected sales in new energy vehicles, and challenges in promoting emerging businesses [1] - There are concerns regarding the demand for components in refrigeration and air conditioning, as well as risks related to international trade and exchange rates [1]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on the last closing price of 31.88 [1][7]. Core Insights - The company achieved significant growth in Q2 2025, with revenue reaching 85.93 billion yuan, an increase of 18.75% year-on-year, and a net profit of 12.07 billion yuan, up 39.20% [4][5]. - The company's strategic business expansion is expected to continue, particularly in the clean energy and automotive sectors, driven by global demand for thermal management solutions [7]. Financial Performance - In H1 2025, the company reported total revenue of 162.63 billion yuan, a growth of 18.91%, and a net profit of 21.10 billion yuan, up 39.31% [4][5]. - The company's gross margin in Q2 2025 was 29.27%, an increase of 1.44 percentage points, while the net margin rose to 14.13%, up 2.03 percentage points [6]. - The company’s revenue from home appliance cooling components and automotive parts reached 103.89 billion yuan (+25.49%) and 58.74 billion yuan (+8.83%), respectively [5]. Regional Performance - Domestic revenue for H1 2025 was 90.52 billion yuan, a year-on-year increase of 15.66%, while international revenue was 72.11 billion yuan, up 23.27% [5]. Future Projections - The company is projected to achieve net profits of 39.13 billion yuan, 47.36 billion yuan, and 57.56 billion yuan for the years 2025, 2026, and 2027, respectively [7]. - The expected earnings per share (EPS) for the same years are 0.93 yuan, 1.13 yuan, and 1.37 yuan, with corresponding price-to-earnings (PE) ratios of 34.29, 28.33, and 23.31 [9].

Group 1: Company Highlights - Luxshare Precision is focusing on smart glasses as a key product line in its consumer electronics business, with offerings including AI glasses and smart wearables [1] - Mindray Medical has launched the world's first clinically implemented critical care AI model and established an animal healthcare subsidiary [2] - YTO Express is embracing high-quality development amid industry regulations, with a significant increase in single ticket transportation cost savings and a 112% year-on-year growth in reverse logistics [3] - Sanhua Intelligent Controls reported a revenue of 16.263 billion yuan for the first half of 2025, an 18.91% increase year-on-year, driven by rising global temperature control demand [4] Group 2: Financial Performance - Mindray Medical's AI solutions in medical imaging have been developed in collaboration with DeepSeek [2] - YTO Express plans to invest over 4.4 billion yuan in capital expenditures for automation and logistics centers by mid-2025 [3] - Sanhua Intelligent Controls' net profit increased by 39.31% year-on-year, attributed to operational improvements and a focus on high-quality management [4] Group 3: Strategic Initiatives - Luxshare Precision's subsidiary, Jiangsu Luxshare Robotics, is part of its strategy to enhance its product offerings in the robotics sector [1] - YTO Express is expanding its international business into Central Asia and enhancing its air freight capabilities with new aircraft [3] - Sanhua Intelligent Controls is establishing a robotics division to focus on electromechanical actuators and is leveraging existing thermal management technologies for data centers [4]

Group 1 - The core viewpoint of the news is that Bopu Technology conducted a survey on a listed company, Sanhua Intelligent Control, revealing significant growth in revenue and net profit for the first half of 2025 [1] - Sanhua Intelligent Control achieved operating revenue of 16.263 billion yuan, an increase of 18.91% year-on-year, and a net profit of 2.110 billion yuan, up 39.31% year-on-year [1] - The revenue from the refrigeration and air conditioning components business reached 10.389 billion yuan, growing by 25.49% year-on-year, driven by rising global temperature control demand and the expansion of heat pump technology into data centers and energy storage [1] - The automotive components business generated revenue of 5.874 billion yuan, an increase of 8.83% year-on-year, with a customer base that includes major automakers such as Mercedes-Benz, BYD, Tesla, and Toyota [1] - The company is advancing its data center liquid cooling business by leveraging existing thermal management technology for component reuse [1] - A robotics division has been established, focusing on electromechanical actuators and promoting mass production [1] - The growth in net profit is primarily attributed to the "elite troops" initiative, which enhances operational quality [1] - The company is addressing tariff policies through overseas production base layouts and has reached cost-sharing agreements with clients to ensure supply chain stability [1]

Core Insights - Company reported a revenue of 16.263 billion yuan for the first half of 2025, representing a year-on-year increase of 18.9% [1] - Net profit attributable to shareholders reached 2.11 billion yuan, up 39.3% year-on-year [1] Financial Performance - In Q2 2025, revenue was 8.593 billion yuan, showing a year-on-year increase of 18.7% and a quarter-on-quarter increase of 12.0% [1] - Net profit for Q2 2025 was 1.207 billion yuan, reflecting a year-on-year increase of 39.2% and a quarter-on-quarter increase of 33.7% [1] - The company's net profit margin improved by 2.02 percentage points to 13.15% [2] Business Segments - Automotive parts business generated revenue of 5.874 billion yuan in H1 2025, with a year-on-year growth of 8.8% and a gross margin of 27.96% [1] - The air conditioning and refrigeration components business achieved revenue of 10.389 billion yuan, up 25.5% year-on-year, with a gross margin of 28.21% [1] - The humanoid robot business is expected to drive long-term growth, with the company positioned as a core supplier in the electromechanical actuator assembly [2] Cost Management - The company successfully reduced its expense ratio by 0.61 percentage points to 7.67%, indicating improved operational efficiency [2] - R&D expense ratio slightly decreased by 0.29 percentage points to 4.33%, but the scale of R&D investment is expected to remain robust [2] Future Projections - Revenue projections for 2025-2027 are 31.586 billion, 36.010 billion, and 43.622 billion yuan, respectively [3] - Expected net profits for the same period are 3.569 billion, 4.604 billion, and 5.228 billion yuan, respectively [3] - Earnings per share (EPS) are projected to be 0.85, 1.09, and 1.24 yuan, with corresponding price-to-earnings (PE) ratios of 38, 29, and 26 [3]

Group 1: Financial Performance - The company achieved a revenue of 16.263 billion yuan in the first half of 2025, representing an 18.91% year-on-year increase [6] - Net profit attributable to shareholders reached 2.11 billion yuan, up 39.31% year-on-year [7] - Gross profit margin was 28.12%, an increase of 0.65% compared to the previous year [7] - Net profit margin attributable to shareholders was 12.97%, reflecting a 1.90% year-on-year increase [7] Group 2: Business Segments Performance - Revenue from the refrigeration and air conditioning components business was 10.389 billion yuan, a 25.49% increase year-on-year [7] - Revenue from the automotive components business was 5.874 billion yuan, showing an 8.83% year-on-year growth [7] Group 3: Market Trends and Drivers - The growth in the refrigeration and air conditioning market is driven by increasing demand for temperature regulation due to climate variability [7] - The penetration rate of air conditioning in regions like Europe and Africa remains low, indicating significant market potential [7] - The expansion of heat pump technology into new applications such as data centers and energy storage is expected to exceed traditional household appliance markets [7] Group 4: Strategic Initiatives - The company is actively expanding its data center liquid cooling segment, leveraging over 40 years of experience in refrigeration technology [8] - A dedicated robotics division has been established to focus on electromechanical actuators and AI, facilitating product development and mass production [10] - The company has implemented targeted measures to enhance operational quality, contributing to the significant increase in net profit [10] Group 5: Globalization and Tariff Impact - The company has established overseas production bases in Poland, Mexico, Thailand, and Vietnam to ensure localized production [10] - Global production base layout and flexible capacity allocation have strengthened supply chain stability amid tariff policies [10] - The company has successfully negotiated favorable terms regarding tariff cost sharing with clients, ensuring long-term competitiveness [10]

（股 份 代 號：2050） 2025年半年度業績預告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 ZHEJIANG SANHUA INTELLIGENT CONTROLS CO., LTD. 浙江三花智能控制股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） – 1 – 二、與會計師事務所溝通情況 本 次 業 績 預 告 數 據 僅 為 本 公 司 財 務 部 門 初 步 核 算 結 果，未 經 會 計 師 事 務 所 審 計。本 業 績 預 告 所 載 之 財 務 數 據 根 據 中 國 企 業 會 計 準 則 編 製。 本公告乃由浙江三花智能控制股份有限公司（「本公司」）自 願 作 出。 一、本期業績預計情況 （一）業績預告期間 2025年1月1日 至2025年6月30日（「報告期」） （二）業績預告情況 扭虧為盈 同向上升 同向下降 | 項目 ...

Core Viewpoint - Sanhua Intelligent Control plans to raise HKD 8 billion through its IPO in Hong Kong, but the necessity of this fundraising is questionable due to fluctuating capacity utilization and slowing growth rates in recent years [1][2]. Group 1: IPO Details - Sanhua Intelligent Control is set to launch its IPO on the Hong Kong Stock Exchange, having secured cornerstone investment agreements with 16 well-known institutions, including Schroders and GIC [1]. - The company plans to issue 360 million H-shares, with 7% allocated for public offering in Hong Kong and 93% for international placement, along with a 15% over-allotment option [2]. - The indicative price range for the shares is HKD 21.21 to HKD 22.53, with a midpoint price of HKD 21.87 expected to yield approximately HKD 77.41 billion in net proceeds [2][3]. Group 2: Fund Utilization - Approximately 30% of the net proceeds (HKD 23.22 billion) will be allocated for ongoing global R&D and innovation to strengthen existing capabilities and achieve sustainable growth over the next three years [2][3]. - Another 30% (HKD 23.22 billion) is earmarked for expanding and constructing new factories in China, as well as enhancing production automation to improve capacity and efficiency [2][3]. - 25% of the net proceeds (HKD 19.35 billion) will be used to deepen global presence by expanding overseas capacity, while 5% (HKD 3.87 billion) will enhance digital infrastructure across various business processes [3]. Group 3: Capacity and Financial Performance - The company's capacity utilization has shown volatility, with a decline noted in the past year, recording 83.8%, 92.2%, and 91.2% from 2022 to 2024 [4]. - The capital expenditure is on the rise, but the net cash flow from operating activities is sufficient to cover these expenses [4][6]. - As of the end of Q1, the company's debt-to-asset ratio decreased significantly to 44.91% from 53% in 2022, indicating improved financial health [6]. Group 4: Revenue Growth and Challenges - Sanhua Intelligent Control is the largest manufacturer of refrigeration control components globally, with revenue growth from 121 billion to 279 billion from 2020 to 2024, but growth rates have been slowing [7][9]. - The revenue growth rates for the same period were 7.29%, 32.30%, 33.25%, 15.04%, and 13.8%, while net profit growth rates were 2.76%, 15.7%, 52.98%, 12.49%, and 6.07% [7]. - Accounts receivable have increased significantly, with a 20% growth rate in 2024, while revenue growth was only 13.8%, indicating potential issues with cash flow management [9]. Group 5: Market Position and Competition - The company holds a dominant market share of 45.5% in the global refrigeration control components market, but faces intense competition from major manufacturers [10]. - In the automotive parts sector, Sanhua's revenue grew from 75.14 billion to 113.87 billion from 2022 to 2024, with a market share of approximately 4.1% in the automotive thermal management systems [12]. - The company is also exploring opportunities in the robotics sector, planning to invest at least HKD 3.8 billion in a new R&D and production base for robotic actuators [12].

Core Viewpoint - Sanhua Intelligent (02050) is set to launch an IPO from June 13 to June 18, 2025, aiming to issue 360 million H-shares, with 7% allocated for public offering in Hong Kong and 93% for international offering, plus a 15% over-allotment option [1] Group 1: Company Overview - According to Frost & Sullivan, Sanhua is the largest manufacturer of refrigeration and air conditioning control components globally, with a market share of approximately 45.5% in the refrigeration and air conditioning control components market as of 2024 [1] - The company is also a leading manufacturer of automotive thermal management system components, ranking fifth globally with a market share of about 4.1% as of 2024 [1] - Sanhua aims to develop a smart low-carbon economy and create a green quality environment, focusing on research, promotion, and application of thermal management technology [1] Group 2: Fundraising and Use of Proceeds - The cornerstone investors, including Schroders, GIC, and others, have agreed to subscribe to shares amounting to approximately $562 million, with a total of 202 million shares expected to be subscribed at a price of HKD 21.87 per share [2] - Assuming no exercise of the over-allotment option and after deducting commissions and estimated expenses, the net proceeds from the global offering are expected to be approximately HKD 7.741 billion [3] - The net proceeds will be allocated as follows: 30% for ongoing global R&D and innovation, 30% for expanding and building new factories in China, 25% for enhancing overseas capacity, 5% for strengthening digital infrastructure, and 10% for working capital and general corporate purposes [4]

Core Viewpoint - Zhejiang Sanhua Intelligent Control Co., Ltd. is preparing for a listing on the Hong Kong Stock Exchange, with CICC and Huatai International as joint sponsors [1] Company Overview - Sanhua Intelligent is the largest manufacturer of refrigeration and air conditioning control components globally and a leading manufacturer of automotive thermal management system components [3] - The company operates in two main segments: refrigeration and air conditioning components, and automotive components, with ongoing expansion into emerging fields such as bionic robot electromechanical actuators [3] Market Position - According to Frost & Sullivan, Sanhua holds approximately 45.5% market share in the global refrigeration and air conditioning control components market and ranks fifth in the global automotive thermal management system components market with a 4.1% share [3] - In the refrigeration and air conditioning components sector, Sanhua is a key supplier for various markets, including household and commercial air conditioning, commercial refrigeration, industrial refrigeration, and small appliances [3] Product Portfolio - The company’s key products include various types of valves (electronic expansion valves, four-way reversing valves, shut-off valves, solenoid valves, and ball valves), heat exchangers (especially microchannel heat exchangers), pumps (like Omega pumps), and controllers (including variable frequency controllers and pressure sensors) [3] - In the automotive parts sector, Sanhua provides essential thermal management control solutions for both new energy vehicles and traditional fuel vehicles [4] Financial Performance - Revenue figures for Sanhua are projected to be approximately 21.35 billion RMB in 2022, 24.56 billion RMB in 2023, and 27.95 billion RMB in 2024, with corresponding profits of about 2.61 billion RMB, 2.93 billion RMB, and 3.11 billion RMB respectively [5][6] - The company’s gross profit margin is expected to remain stable, with gross profits of 5.46 billion RMB (25.6%), 6.74 billion RMB (27.4%), and 7.62 billion RMB (27.3%) for the years 2022, 2023, and 2024 [6]