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Zhejiang Sanhua Intelligent Controls Co., Ltd.
(2050)
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Rating:65Neutral
Price Target:
HK$27.00
▲(3.21% Upside)
Action:Reiterated
Date:07/04/26
The score is primarily supported by strong underlying financial performance (healthy margins, conservative leverage, and solid ROE), but is meaningfully weighed down by expensive valuation (high P/E and low yield). Technicals are mixed, with a short-term improvement but a weaker medium-to-longer-term trend and negative MACD.
Positive Factors
Strong profitability
Healthy gross, operating, and net margins indicate Sanhua captures meaningful value from its HVAC&R and thermal-management products. Sustained profitability provides resources for product development, customer support, and capacity investment while helping the company withstand normal industrial cost pressures.
Negative Factors
Moderate cash conversion
Although reported cash generation is positive, only about half of net income converted into free cash flow in the latest period. Persistent conversion weakness could limit internally funded investment, increase reliance on working-capital management, and make accounting earnings less dependable as a measure of distributable cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
Healthy gross, operating, and net margins indicate Sanhua captures meaningful value from its HVAC&R and thermal-management products. Sustained profitability provides resources for product development, customer support, and capacity investment while helping the company withstand normal industrial cost pressures.
Read all positive factors
Zhejiang Sanhua Intelligent Controls Co., Ltd. (2050) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$215.92B
Dividend Yield1.78%
Average Volume (3M)7.57M
Price to Earnings (P/E)37.7
Beta (1Y)1.99
Revenue Growth7.64%
EPS GrowthN/A
CountryHK
Employees19,090
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.10
Shares Outstanding476,536,400
10 Day Avg. Volume5,968,751
30 Day Avg. Volume7,571,731
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$32.12Price Target Upside22.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.24
Revenue Forecast (FY)HK$39.97B
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
Sanhua primarily makes money by selling HVAC&R and thermal-management components to equipment manufacturers (OEMs). Its revenue model is centered on B2B product sales where it supplies high-volume, specification-driven parts—such as electronic exp...
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 | 6.82B | 6.62B | 4.84B | 4.70B | 3.50B | 2.88B |
| 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
37.86
Negative
Market Momentum
-0.70
Positive
42.94
Neutral
12.67
Positive
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 below the 20-day moving average (MA) of 38.31, below the 50-day MA of 37.86, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 12.67 is Positive, 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$28.84B | 7.76 | 13.60% | 4.45% | 7.74% | 0.33% | |
73 Outperform | HK$10.33B | 11.88 | 10.30% | 3.86% | -6.45% | -24.71% | |
65 Neutral | HK$215.92B | 37.70 | 12.44% | 1.78% | 7.64% | ― | |
62 Neutral | HK$15.57B | 20.08 | 12.98% | 1.90% | 19.63% | 16.42% | |
58 Neutral | HK$6.69B | 6.10 | 10.07% | 7.44% | 19.90% | 67.16% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | HK$1.68B | 3.94 | 4.42% | 4.52% | -18.58% | ― |
* General Sector Average
HK:2050
Zhejiang Sanhua Intelligent Controls Co., Ltd.
25.48
-6.47
-20.26%
HK:0658
China High Speed Transmission Equipment Group Co
1.06
-0.46
-30.26%
HK:1882
Haitian International Holdings
17.97
-3.72
-17.16%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.85
-0.09
-4.49%
HK:1286
Impro Precision Industries Limited
8.44
4.76
129.27%
HK:2285
Chervon Holdings Limited
20.00
-0.02
-0.07%
Zhejiang Sanhua Intelligent Controls Co., Ltd. Corporate Events
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 ...
Sanhua to Cancel Restricted Shares and Adjust Articles After Incentive Review
Jul 17, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. plans to repurchase and cancel 648,500 restricted A shares from 81 participants who no longer qualify under its 2024 Restricted Share Incentive Scheme, following unmet eligibility or performance crite...
Sanhua Adds New Members to Strategy and ESG Committee to Bolster Governance
Jun 30, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd., a Hong Kong-listed Chinese joint stock company in the intelligent controls industry, maintains a Board structure that includes executive, non-executive and independent non-executive directors to over...
Zhejiang Sanhua Details Board and Committee Structure
Jun 30, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has announced the current composition of its board of directors, detailing executive, non-executive, and independent non-executive members and confirming Zhang Yabo as chairman. The disclosure undersc...
Zhejiang Sanhua’s 2025 AGM Passes All Resolutions with Strong Shareholder Turnout
Jun 29, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. held its 2025 annual general meeting on June 29, 2026, in Shaoxing, Zhejiang, with all directors attending in person or electronically and all proposed resolutions duly passed. The meeting recorded sh...
Zhejiang Sanhua Announces 2025 Final Dividend and Sets Hong Kong Payment Details
Jun 29, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has declared a final ordinary cash dividend of RMB 2.8 per 10 shares for the financial year ended 31 December 2025, with shareholder approval obtained on 29 June 2026. For its Hong Kong share register...
Zhejiang Sanhua Details Board and Committee Structure to Strengthen Governance
Jun 29, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has detailed the composition of its board, naming four executive directors, three non-executive directors, and four independent non-executive directors, including a lead independent director. This str...
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.