HK Stock Market Move | Zhejiang Sanhua Intelligent Controls (02050) rose more than 3% in the third quarter, with a year-on-year increase in net profit attributable to shareholders of 43.81%.

Zhejiang Sanhua Intelligent Controls (02050) rose more than 3%, as of the time of writing, up 3.02% to HK$42.96, with a turnover of HK$4.68 billion. On the news front, Zhejiang Sanhua Intelligent Controls released its performance for the first three quarters of 2025. The group achieved operating revenue of RMB 24.029 billion, a year-on-year increase of 16.86%; net profit attributable to shareholders of listed companies was RMB 3.242 billion, a year-on-year increase of 40.85%. Looking solely at the third quarter, the company's revenue was RMB 7.7 billion, a year-on-year increase of 12.77%; net profit attributable to shareholders was RMB 1.13 billion, a year-on-year increase of 43.81%. Guosheng Securities commented that the recovery in automotive demand in Q3 has helped maintain steady growth in performance. Guosheng Securities pointed out that from the downstream perspective, 1) automotive industry: In Q3 2025, China's new energy vehicle sales reached 3.4 million vehicles, an increase of 12% compared to the previous quarter; Tesla's global production was 447,000 vehicles, an increase of 9% compared to the previous quarter. Increased downstream demand is driving the company's benefit from the increase in automotive demand for thermal management; 2) home appliances: In Q3 2025, cumulative production of air conditioners in China was 39.56 million units, a decrease of 36% compared to the previous quarter, mainly due to Q3 being the off-season for the home appliance industry. Overall, downstream automotive demand in Q3 is increasing, while core customer demand is picking up, resulting in a 13% year-on-year increase in revenue for Q3, with a 10% decrease quarter-on-quarter. In addition, the bank believes that the company's strategic investment in Siasun Robot & Automation has the potential to open up a third growth curve.