Zhejiang Sanhua Intelligent Controls: Too much pessimism priced in; reiterate Buy

研报英文原文证据摘录

Zhejiang Sanhua Intelligent Controls: Too much pessimism priced in; reiterate Buy

Global Research

27 July 2026abc

Zhejiang Sanhua Intelligent Controls Equities

ChinaToo much pessimism priced in; reiterate Buy

Auto Parts

12-month rating Buy

Growth prospects remain intact

Following a c35% share price pullback YTD, we think market concerns over the muted 12m price target Rmb62.00

domestic demand on A/C and PVs have been priced in. Trading at 28x 2027E PE, a level Prior : Rmb65.00

lower than the 2020-24 average PE, before its expansion into IDC liquid cooling and

Price (27 Jul 2026) Rmb36.03

robotics, we believe the market is underappreciating the resilience of Sanhua's

refrigeration and auto thermal management business and assigning limited value to its RIC: 002050.SZ BBG: 002050 CS

emerging liquid cooling and humanoid robotics businesses, which could broaden its

Trading data and key metrics

earnings base and provide meaningful long-term growth optionality.

52-wk range Rmb58.56-26.31

Refrigeration & Auto parts: resilience beyond market concerns Market cap. Rmb152b/US$22.4b

Shares o/s 4,208m (ORDA)

We expect Sanhua's refrigeration business to stabilise rather than decline sharply. The

Free float 39%

key headwind remains muted A/C demand, particularly in the mature markets.

However, this should be offset by several tailwinds: rising heat-pump adoption in Avg. daily volume ('000) 143,186

Europe, emerging growth opportunities in new markets such as India, the resilience of Avg. daily value (m) Rmb6,774.4

the commercial refrigeration business. Sanhua's auto parts business delivered robust Common s/h equity (12/26E) Rmb33.3b

growth in Q126 (despite a 10% YoY decline in China domestic auto sales); we believe P/BV (12/26E) 4.6x