Industrial Machinery and Supplies and Components

Sanhua

Conference Minutes

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Data center-related new products are advancing on track. This year is expected to grow 50%-100% YoY.

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Sanhua Intelligent Controls (1Q26 Trans): Still Targeting 15% YoY Net Profit Growth

Financial Analysis

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Q1 revenue returned to positive growth. Back in positive territory.

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Sanhua Intelligent Controls: Auto parts back in the black; how long until the robot boom?

Today’s Key News Recap

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0429 | Dolphin Research Focus: 🐬 Macro/Industry 1) The Fed will hold its policy meeting in Washington this week, with the decision due Wed 2:00pm ET (Thu 2:00am Beijing). Markets will focus on the rate decision, policy stance and forward guidance on the easing path.With growth and inflation still resilient, consensus expects rates to be kept on hold this time. 🐬 Single Stocks 1) $NIO-SW(09866.HK) $NIO Inc(NIO.US) Under Nio’s ONVO brand, the smart dual-cockpit, large five-seat flagship SUV ONVO L80 has been introduced. Pre-sales have started.

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CTG DUTY-FREE

Fed decision due tonight; NIO's ONVO L80 pre-sale in focus | Daily News Recap

Robot

On the afternoon of Mar 23 (Beijing time), $SANHUA(2050.HK) released its FY25 annual report.Headline results came in slightly below the midpoint of guidance, near the low end, missing sell-side expectations.

Perfect storm? Sanhua Intelligent Controls not that bad

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Below is Dolphin Research's Trans of Sanhua Intelligent Controls' FY25 annual report earnings call.---

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Sanhua Intelligent Controls (Trans): 2026 internal net profit growth target at 15%---

4Q25 First Take: results landed toward the lower end of the pre-announced range, near the floor and below the Street. On revenue, the main drag came from overseas sales in refrigeration, which declined YoY in 2H—particularly in Q4—likely due to U.S. tariff policy. In detail. Key takeaways follow. 1) Q4 headline financials: revenue was approx. RMB 1bn below consensus, the biggest driver of the profit miss. Mgmt and selling expenses ran above market expectations, while R&amp;D spend was lower, all pointing to external industry pressure. That said, single-quarter GPM reached 31.2%, showing some earnings resilience. 2) Refrigeration: 2H revenue fell 1% YoY. Since Q3 growth was positive, Q4 must have turned negative YoY. Weakness started in Q3 and became more visible in Q4, partly on a high base from 2024 state subsidies, but mainly due to overseas tariffs, especially the U.S. special tariffs on 'steel derivative products' effective from Jun. The tariff impact weighed on shipments in the quarter. However, localization is progressing with plants in Mexico, Thailand, and the U.S. ramping. We view the current situation as a transitory pain. 3) Auto parts: performance was also middling, with 2H YoY growth under 10%, well below NEV industry growth, and Q4 YoY revenue growth likely slowing vs. Q3. The softness likely reflects customer mix, notably weaker Q4 sales at a major North American client. Diversification is reshaping the customer base. The top customer contribution fell to 10.90% in 2025 from 12.62% in 2024. 4) New biz: the humanoid robot line was not separately disclosed, suggesting a small revenue contribution. For data centers, the company repeatedly highlighted project execution in the report, making this a segment to watch. 5) Overall: Q4 missed Street expectations, driven more by industry factors (policy cycles, trade frictions) and customer mix than by internal execution. With capacity localization and customer diversification underway, this looks like a transition period. Importantly, the ceiling in traditional refrigeration and auto parts is getting closer, so investors should focus on progress in robots and data centers. $Sanhua(002050.SZ) $SANHUA(02050.HK)

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0323 | Dolphin Focus. Macro/Industry.1) On Mar. 21 (local time), Trump issued a 48-hour ultimatum to Iran to fully open the Strait of Hormuz or face strikes on its power plants. Iran responded that if its power facilities are attacked, it would shut the strait entirely.The Middle East conflict is a direct shock to the global energy supply chain. Higher oil prices will lift inflation, forcing the Fed to keep rates higher for longer and compressing growth-stock valuations.Gold's safe-haven appeal is being offset near term by rate expectations. Profit-taking after the prior rally has triggered technical selling, magnifying the decline...

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HK & A-Shares Rout; Gold Hammered | Daily News Recap---

Deep Research

We take a deep dive into dexterous robot hands. Dolphin Research will address four key questions.Why do dexterous hands matter? Where are the industry's bottlenecks?What risks and opportunities arise as these bottlenecks are solved? What are the future directions and potential commercialization paths?

Humanoids: Why Dexterous Hands Are the Bottleneck?

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In the previous report, we reviewed Sanhua Intelligent Controls’ growth trajectory and core product lines.In this piece, we look ahead to assess Sanhua’s runway in data-center thermal management and humanoid robotics.

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Sanhua: In the AI robotics era, do cross-industry incumbents laugh last?

Any deep dive into the humanoid robot supply chain has to cover Sanhua Intelligent Controls. To unpack its core capabilities, we mapped the company in detail; as the first note in the series, we focus on its growth trajectory and exactly what it makes. Think of this as a concise 'running log' to set the groundwork for studying this manufacturing leader.

Sanhua Intelligent Controls: Unflashy biz — how does it keep riding every boom?

William O'Neil Resumes Coverage of Sanhua Intelligent Controls with Buy Rating

Zheshang Securities Maintains Buy Rating on Sanhua Intelligent Controls, Optimistic About Robot Business Breakthrough

Zhisheng Intelligent Control Focuses on Environmental Thermal Management Solutions

Zhisheng Intelligent Control Q1 2026 Revenue and Net Profit Growth Slowed Significantly

Sanhua Smart Control Announces Q1 2026 Earnings: 15% Net Profit Growth Target Remains Unchanged

CICC Reports: Zhonghua ZhiKong Q1 Earnings Meet Expectations

BofAS Cuts Profit Forecast and Maintains 'Underperform' Rating for Sanhua Smart Control

Sanhua Smart Control Advances Liquid Cooling for Data Centers and Energy Storage

Sanhua released FY2026 Q1 earnings on April 29 After-Market (BJT), actual revenue CNY 7.774 B (forecast CNY 7.872 B), actual EPS CNY 0.22 (forecast CNY 0.2358)

Sanhua to Release FY2026 Q1 Earnings on April 29 After-Market (BJT), Forecast Revenue CNY 7.872 B, EPS CNY 0.2358

Guangdong Sanhua New Energy Vehicle Parts Capital Increase to 1.35 Billion

Schroders PLC Increases Holdings in Sanhua Intelligent Control by $113 Million

Schroders PLC Increases Holding in Sanhua Smart Control to 10.62%

Shareholders of Sanhua Smart Control Complete or Prematurely Terminate Sale Plan

JPMorgan Downgrades Sihai Refrigeration's Profit Forecast and Target Price

Citi Report: Sanhua Smart Control Expected 15% Net Profit Growth in 2026

CICC Downgrades Target Price for Sanhua Intelligent to HKD 40

Sanhua Smart Control and Subsidiaries Share a 3.5 Billion Yuan Asset Pool Quota

Sanhua released FY2025 Q4 earnings on March 23 After-Market (BJT), actual revenue CNY 6.982 B (forecast CNY 8.352 B), actual EPS CNY 0.1953 (forecast CNY 0.2768)

Sanhua released FY2025 annual earnings on March 23 After-Market (BJT), actual revenue CNY 31.01 B (forecast CNY 32.45 B), actual EPS CNY 0.9671 (forecast CNY 1.0393)

CICC reported that SANHUAdelivered 1Q results in line with expectations, with a revenue increase of 1.36% YoY to RMB7.774 billion. Despite a 3% YoY decline in domestic air-conditioner sales and a 6.6% YoY drop in passenger vehicle sales, SANHUA benefited from its expansion into data center and energy storage sectors. CICC maintained its earnings forecasts for 2026 and 2027, keeping an Outperform rating on both A-shares and H-shares, with target prices of RMB59.5 and HKD40, respectively.

AASTOCKS News

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CICC: SANHUA  1Q Results In Line; Maintains Outperform Rating

BofAS reported that SANHUAexperienced a 1% YoY revenue growth in 1Q, with a 15% increase in automotive components but a 6% decline in refrigeration. Gross margin improved to 27.8%, though net profit rose only 3% YoY, missing expectations due to foreign exchange losses. The broker lowered revenue and earnings forecasts for 2026-2028 by 2% and maintained an Underperform rating, citing a potential growth slowdown to 10% this year and a high valuation at 27 times forecast PE, with a target price of HKD30.

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Bank of America Corp

BofAS: SANHUA  1Q Net Profit Misses; Reiterates Underperform

SANHUAshares rose 4.45% to HKD33.3 after reporting a net profit of RMB928 million for Q1 2026, a 3% YoY increase but 6% below market consensus. Revenue increased 1% YoY to RMB7.777 billion, also below estimates. The company faced foreign exchange losses of RMB150 million. Citi maintains a Neutral rating with a target price of HKD31, citing growth pressures in Q2 2026 due to a high base in refrigeration and weak automotive sales.

Citigroup

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SANHUA  Gains 4.5% in Half-day Post-results; Citi Maintains Neutral Rating

Zhejiang Sanhua Intelligent Controls Co., Ltd. reported a 1.36% year-on-year revenue increase to RMB 7.77 billion and a 2.68% rise in net profit to RMB 927.6 million for Q1 2026. Operating cash flow surged 136.5% to RMB 1.11 billion, indicating strong cash generation despite declining earnings per share and weakened ROE. Total assets remained stable at RMB 49.36 billion, with equity attributable to shareholders up 2.77% to RMB 32.63 billion. Analysts rate the stock as a Buy with a target price of HK$37.40.

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Sanhua Intelligent Controls Posts Strong Q1 Cash Flow Despite Softer Returns on Equity