HK Stock Market Move | Zhejiang Sanhua Intelligent Controls (02050) fell by more than 6%, Goldman Sachs said the market had high expectations for its humanoid Siasun Robot & Automation.

Zhejiang Sanhua Intelligent Controls (02050) fell by more than 6%, dropping by 6.03% as of the time of writing to 36.14 Hong Kong dollars, with a trading volume of 640 million Hong Kong dollars. On the news front, Goldman Sachs recently released a research report downgrading the rating of Zhejiang Sanhua Intelligent Controls to "Neutral," citing "excessive expectations for humanoid Siasun Robot&Automation." The core reason for the downgrade by Goldman Sachs directly points to the "overly optimistic market expectations for the revenue scale and implementation timing of Zhejiang Sanhua Intelligent Controls' humanoid Siasun Robot&Automation actuators." The recent outperformance of Zhejiang Sanhua Intelligent Controls' A shares has partially priced in the expectations for Siasun Robot&Automation business. According to Goldman Sachs' calculations, the current valuation of Zhejiang Sanhua Intelligent Controls' A shares implies an expectation of 900,000-2 million units of Optimus Siasun Robot&Automation shipments to Tesla (assuming a market share of 30%-70% for Three Flowers actuators), while Tesla has made it clear that their goal is to achieve 1 million units of Siasun Robot&Automation shipments by 2030, which seems difficult to achieve in the short term (next 12 months).