JP Morgan has raised the target price for Zhejiang Sanhua Intelligent Controls (02050) to 42 Hong Kong dollars and maintains a "buy" rating.

JPMorgan released a research report stating that it has raised the financial forecast for Zhejiang Sanhua Intelligent Controls (02050) for the years 2025 to 2027 by an average of 20%, to reflect better-than-expected third-quarter performance and management's guidance adjustment. Considering the company's strong fundamentals in various key areas and strategic positioning, the bank believes that now is an opportunity to buy low; Zhejiang Sanhua Intelligent Controls H shares target price has been raised from HK$41 to HK$42, while Zhejiang Sanhua Intelligent Controls A shares target price has been raised from RMB 43 to RMB 49, both maintaining a "buy" rating. The bank obtained information from industry conferences, further strengthening its confidence in Zhejiang Sanhua Intelligent Controls' long-term growth. Key trends include the strong momentum in emerging areas such as humanoid Siasun Robot & Automation and AIDC liquid cooling, resilient automotive parts business, and a complete global supply chain system. The outlook for the fourth quarter of this year and next year shows that despite facing a high base, the company's profit growth and profit margin expansion will continue. Although the company's H and A shares have retreated since October, mainly due to profit-taking by investors.