HK Stock Market Move | Zhejiang Sanhua Intelligent Controls (02050) rose more than 4% in intraday trading, with expected full-year net profit to increase by 25%-50% year-on-year. Siasun Robot&Automation business is expected to achieve breakthrough progress.

Zhejiang Sanhua Intelligent Controls (02050) rose more than 4% during trading hours. As of the time of writing, it has risen by 3.83% to HK$34.72, with a trading volume of HK$2.65 billion. On the news front, Zhejiang Sanhua Intelligent Controls recently announced that the group expects its net profit attributable to shareholders of the listed company to be approximately HK$3.874 to HK$4.649 billion by 2025, a year-on-year increase of 25%-50%; after deducting non-recurring gains and losses, the net profit is expected to be approximately HK$3.679 to HK$4.615 billion, a year-on-year increase of 18%-48%. Yuanta Securities' research report stated that with Zhejiang Sanhua Intelligent Controls actively expanding into new areas and steadily increasing production capacity, the company's performance is expected to maintain a growth rate of 20%-30% in the coming years. The company previously announced a buyback of HK$300-600 million, but as of the end of November, the buyback amount was only HK$106 million. It is expected that the company will continue to buy back shares at an opportune time, which will positively impact the stock price. Yuanta Securities also pointed out that the company has a strong outlook for the future of Siasun Robot & Automation. By leveraging close cooperation with major clients, the company has entered the Siasun Robot & Automation actuator market. The company established the Siasun Robot & Automation business unit this year, increasing its investment in R&D for Siasun Robot & Automation products. According to the Hong Kong IPO prospectus, the company will invest 10% of the fundraising amount (HK$700 million) into the Siasun Robot & Automation business and plans to hire 200 more R&D talents in the next 3 years. The company is currently collaborating with major clients on R&D and trial production. Market expectations are that by 2026, Siasun Robot & Automation products for major clients will enter mass production, potentially leading to significant progress in the company's Siasun Robot & Automation business.