JPMorgan Raises Sanhua's (02050) Target Price to HK$42, Maintains "Overweight" Rating

Stock News11-20

JPMorgan has released a research report, raising its average financial forecasts for Zhejiang Sanhua Intelligent Controls Co., Ltd. (02050) for 2025–2027 by 20%, reflecting better-than-expected Q3 results and upward revisions to management guidance. Given the company's solid fundamentals and strategic positioning across key sectors, the bank views the current dip as a buying opportunity.

The target price for Sanhua's H-shares has been increased from HK$41 to HK$42, while the A-share (002050.SZ) target price was raised from RMB 43 to RMB 49, with an "Overweight" rating maintained. Insights from industry conferences reinforced JPMorgan's confidence in Sanhua's multi-year growth, driven by strong momentum in emerging sectors like humanoid robotics and AIDC liquid cooling, resilient automotive components business, and a well-structured global supply chain.

The Q4 and next-year outlook suggests sustained earnings growth and margin expansion despite high comparables. Although both H-shares and A-shares have retreated since October, primarily due to profit-taking, the bank remains optimistic about Sanhua's long-term prospects.

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