BOC International Maintains "Outperform" Rating on Sanhua, Lowers Target Price to HK$40

Deep News03-25

BOC International has released a research report maintaining an "Outperform" rating on Sanhua Intelligent Controls (02050), while reducing the target price from HK$49 to HK$40. The target price for Sanhua Intelligent Controls (002050.SZ) has also been lowered from 55 yuan to 52 yuan. The firm anticipates that the company's net profit growth will slow to approximately 15% by 2026.

During the earnings briefing, Sanhua Intelligent Controls' management reaffirmed its strategy to achieve profit growth and improve gross margin. The company's performance in the fourth quarter of last year was weak, with revenue declining by 5.4% year-on-year, net profit increasing by 2.9%, and core net profit rising slightly by 0.6%. This compares to growth rates of 12.8%, 43.8%, and 48.8% in the third quarter, reflecting a slowdown in growth during the last quarter of the previous year. However, the gross margin expanded by 4.4 percentage points year-on-year to 30.6%, providing a positive surprise.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment