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Zhejiang Sanhua Intelligent Controls Co., Ltd.
(2050)
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Rating:68Neutral
Price Target:
HK$25.00
▼(-4.43% Downside)
Action:Reiterated
Date:10/29/26
The score is primarily supported by strong profitability and a conservative balance sheet, indicating solid underlying business quality. Offsetting factors are moderate cash conversion versus reported earnings and a mixed-to-weak technical trend (below key longer-term moving averages with negative MACD). A high P/E multiple further limits the score despite a moderate dividend yield.
Positive Factors
Strong Profitability
Healthy gross, operating, and net margins indicate that the company retains meaningful value from its industrial products after production and operating costs. Sustained profitability provides internal funding for product development, capacity, and customer programs while supporting resilience across the business cycle.
Negative Factors
Moderate Cash Conversion
Reported earnings are not translating fully into free cash flow in the latest period, which can reduce the resources available for reinvestment, debt service, and shareholder returns. Persistently moderate conversion would make earnings quality and self-funded growth less robust than margins alone suggest.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Healthy gross, operating, and net margins indicate that the company retains meaningful value from its industrial products after production and operating costs. Sustained profitability provides internal funding for product development, capacity, and customer programs while supporting resilience across the business cycle.
Read all positive factors
Zhejiang Sanhua Intelligent Controls Co., Ltd. (2050) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$10.67B
Dividend Yield2.65%
Average Volume (3M)5.83M
Price to Earnings (P/E)37.1
Beta (1Y)1.79
Revenue Growth8.05%
EPS Growth-3.90%
CountryHK
Employees19,090
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.10
Shares Outstanding476,536,400
10 Day Avg. Volume9,963,070
30 Day Avg. Volume5,834,011
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)4.28
Price to Sales (P/S)3.93
P/FCF Ratio70.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$33.10Price Target Upside26.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.23
Revenue Forecast (FY)HK$39.87B
Zhejiang Sanhua Intelligent Controls Co., Ltd. Business Overview & Revenue Model
Company Description
Zhejiang Sanhua Intelligent Controls Co.,Ltd. operates globally, focusing on the research, manufacturing, and distribution of electrical components for refrigeration, air conditioning, and automotive applications. Their diverse product lineup incl...
How the Company Makes Money
The company primarily makes money by designing, manufacturing, and selling thermal-management and fluid-control components to business customers (B2B), with revenue recognized from product sales (typically based on delivered quantities under suppl...
Zhejiang Sanhua Intelligent Controls Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.51B | 34.51B | 29.74B | 27.02B | 24.16B | 19.65B |
| Gross Profit | 9.96B | 9.88B | 8.13B | 7.42B | 6.19B | 4.98B |
| EBITDA | 6.96B | 6.61B | 4.90B | 4.62B | 3.50B | 2.82B |
| Net Income | 4.53B | 4.52B | 3.30B | 3.21B | 2.91B | 2.07B |
Balance Sheet | ||||||
| Total Assets | 49.36B | 49.41B | 36.35B | 31.89B | 31.64B | 28.98B |
| Cash, Cash Equivalents and Short-Term Investments | 15.52B | 15.42B | 5.25B | 6.58B | 5.98B | 6.80B |
| Total Debt | 2.24B | 2.46B | 3.84B | 2.46B | 7.52B | 7.50B |
| Total Liabilities | 16.43B | 17.37B | 16.84B | 13.83B | 14.38B | 15.17B |
| Stockholders Equity | 32.63B | 31.75B | 19.30B | 17.89B | 12.76B | 13.68B |
Cash Flow | ||||||
| Free Cash Flow | 2.82B | 1.94B | 1.08B | 978.50M | -436.49M | -371.96M |
| Operating Cash Flow | 5.76B | 5.09B | 4.46B | 3.72B | 2.57B | 1.55B |
| Investing Cash Flow | -4.59B | -3.67B | -3.54B | -1.21B | -2.50B | -4.98B |
| Financing Cash Flow | 7.39B | 7.56B | -1.02B | -1.09B | -839.08M | 2.78B |
Zhejiang Sanhua Intelligent Controls Co., Ltd. Technical Analysis
Negative
26.16
Price Trends
24.02
Negative
25.38
Negative
29.09
Negative
Market Momentum
-0.65
Negative
47.15
Neutral
57.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2050, the sentiment is Negative. The current price of 26.16 is above the 20-day moving average (MA) of 22.54, above the 50-day MA of 24.02, and below the 200-day MA of 29.09, indicating a bearish trend. The MACD of -0.65 indicates Negative momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 57.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2050.
Zhejiang Sanhua Intelligent Controls Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$27.34B | 7.35 | 13.60% | 4.67% | 7.74% | 0.33% | |
71 Outperform | HK$16.94B | 19.75 | 10.30% | 2.32% | -6.45% | -24.71% | |
68 Neutral | HK$10.67B | 37.10 | 11.99% | 2.65% | 8.05% | -3.90% | |
60 Neutral | HK$5.29B | 4.69 | 10.15% | 9.59% | 19.90% | 67.16% | |
58 Neutral | HK$11.57B | 14.14 | 12.98% | 2.69% | 19.63% | 16.42% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | HK$1.68B | 3.80 | 4.42% | 4.52% | -18.58% | ― |
* General Sector Average
HK:2050
Zhejiang Sanhua Intelligent Controls Co., Ltd.
21.42
-18.62
-46.50%
HK:0658
China High Speed Transmission Equipment Group Co
1.18
-0.60
-33.71%
HK:1882
Haitian International Holdings
17.39
-3.03
-14.85%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.41
-0.39
-21.68%
HK:1286
Impro Precision Industries Limited
5.77
0.86
17.51%
HK:2285
Chervon Holdings Limited
32.80
13.49
69.89%
Zhejiang Sanhua Intelligent Controls Co., Ltd. Corporate Events
Sanhua Posts Revenue Growth but Softer Profits in Q3 2026
Oct 28, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd., a China-based producer of intelligent control components, reported unaudited results for the nine months ended 30 September 2026. The group, listed in Hong Kong and reporting under Chinese Accounting...
Zhejiang Sanhua Sets Board Meeting to Approve Third-Quarter Results
Oct 14, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has scheduled a board meeting for October 28, 2026, to review and approve the unaudited third-quarter results for the nine months ended September 30, 2026. The board will also consider the publication...
Sanhua Shareholders Approve Key Resolutions at 2026 Extraordinary Meeting
Sep 15, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. reported the poll results of its first extraordinary general meeting of 2026, held on September 15 in Zhejiang Province, with shareholders representing about 44.9% of voting shares in attendance. All ...
Sanhua Updates Interim Dividend Terms and Cross-Border Tax Arrangements
Sep 15, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. operates in the intelligent control components industry, providing control solutions primarily for HVAC and related applications. The company is listed in Hong Kong, offering H shares to international...
Sanhua’s Interim Profit Slips as R&D Push Weighs on Earnings
Aug 26, 2026
Zhejiang Sanhua Intelligent Controls reported unaudited interim revenue of about RMB16.9 billion for the six months ended June 30, 2026, a 3.9% increase year-on-year, while profit attributable to owners fell 3.1% to roughly RMB2.04 billion. Basic ...
Zhejiang Sanhua Announces Interim Dividend and Outlines Tax Treatment for H-Shareholders
Aug 26, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd., a China-based maker of intelligent control components for HVAC and industrial applications, is listed in Hong Kong and caters to both mainland and overseas investors through its H-share structure. It...
Zhejiang Sanhua Calls 2026 EGM and Sets Interim Dividend Terms
Aug 26, 2026
Zhejiang Sanhua Intelligent Controls has convened its first extraordinary general meeting of 2026 for mid-September in Zhejiang province, where shareholders will vote on special resolutions to repurchase and cancel certain restricted shares and to...
Sanhua Intelligent Controls Sets Board Meeting to Approve 2026 Interim Results
Aug 12, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has scheduled a board meeting for August 26, 2026 to review and approve the interim results for the six months ended June 30, 2026. The board will also consider whether to recommend the payment of an ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.