Zhejiang Sanhua Intelligent Controls Co.,Ltd. (ASX: 02050) shares rose nearly 4% in morning trading on the Hong Kong Stock Exchange. As of the time of writing, the stock was up 3.78% to HK$29.72, with a turnover of HK$45.398 million.
Recent developments indicate that the company has established a dedicated project team for its liquid cooling initiatives. The related liquid cooling products are deployed across various business units, with a product matrix covering both primary and secondary cooling systems. The company is reportedly making smooth progress in its liquid cooling-related operations, entering this new business scenario as a thermal management component supplier. It already supplies products for both primary and secondary systems, with core categories including valves, pumps, and heat exchangers.
Furthermore, the company is conducting ongoing research and development in line with customers' long-term application needs, continuously improving its product lines. It has already begun supplying related products to some global clients.
An analysis from Zheshang Securities addressed market concerns that Taiwanese and European/American manufacturers might have a first-mover advantage in AI data center (AIDC) liquid cooling, potentially leading to weaker-than-expected order fulfillment for Sanhua. However, the securities firm believes the company possesses strong inherent advantages and accumulated experience in product competitiveness and customer trust, suggesting that order fulfillment could exceed expectations.
Leveraging its extensive experience in scaled, meticulous manufacturing and the successful track record from its refrigeration and air conditioning components business, the company is well-positioned to potentially achieve a breakthrough and overtake competitors in the AIDC liquid cooling sector.
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