Northeast: Zhejiang Sanhua Intelligent Controls (02050) is rated as "increasing holding" with impressive performance in its traditional refrigeration main business.

Northeast published a research report stating that it is expected that Zhejiang Sanhua Intelligent Controls (02050) will have operating income of 32.26/37.13/44.12 billion yuan from 2025 to 2027, with net profit attributable to shareholders of 4.24/5.12/6.03 billion yuan, corresponding to P/E ratios of 35/29/25 times. It is the first coverage, and a "hold" rating is given. The main points of Northeast are as follows: Event: The company issued a performance forecast for 2025. With synergies between traditional refrigeration and automotive thermal management, the company's performance is expected to increase in 2025. It is expected to achieve a net profit attributable to shareholders of 3.87-4.65 billion yuan, a year-on-year increase of 25-50%; and a non-GAAP net profit attributable to shareholders of 3.68-4.61 billion yuan, a year-on-year increase of 18-48%. The traditional refrigeration main business has performed well, with a 25.5% year-on-year increase in the first half of 2025 On the one hand, governments around the world are implementing low-carbon energy policies and accelerating the green transformation of economic development. The overseas market's demand for control components for refrigeration and air conditioning continues to expand, driving stable growth in the export of refrigeration products. On the other hand, benefiting from the surge in demand for liquid cooling in data centers driven by AI computing power, the company provides core components such as valves, pumps, and heat exchangers for liquid cooling systems. In the first half of 2025, the traditional refrigeration business achieved revenue of 10.39 billion yuan, a year-on-year increase of 25.5%; and a gross profit margin of 28.2%, a year-on-year increase of 0.65 percentage points. Auto parts business is accelerating recovery, and customer structure continues to optimize Impacted by the production and sales of core customers such as Tesla, the revenue of the auto parts business in the first half of 2025 was 5.87 billion yuan, an increase of only 8.8% year-on-year. With the improvement in Tesla's production and sales, the global delivery volume of Tesla in Q3 was 497,000 vehicles (7.4% year-on-year growth), and the company's auto parts business is accelerating its recovery. In addition, the company's dependence on Tesla is gradually decreasing, and international giants such as General Motors, as well as domestic new forces such as Xiaomi, Li Auto, and XPeng, are beginning to contribute significant growth, and the company has also gradually made breakthroughs with European customers such as Mercedes-Benz, Volkswagen, and Stellantis, which had previously made slow progress. Siasun Robot & Automation's strategic position is clear, and production capacity is waiting for opportunities to blossom The company is deeply tied to Tesla and is the core supplier of humanoid Siasun Robot & Automation electromechanical actuators for Tesla, providing integrated products including rotary and linear actuators. Currently, the company has established a dedicated Siasun Robot & Automation department and built a production base in Thailand to support customers' mass production requirements. It is expected that from 2026 onwards, significant incremental revenue contribution is expected for the company. Risk Warning: The mass production of humanoid Siasun Robot & Automation falls short of expectations; sales of new energy vehicles fall short of expectations; performance forecasts and valuations fall short of expectations.