HK Stock Market Move | Zhejiang Sanhua Intelligent Controls (02050) falls by more than 3%, with last year's net profit increasing by 31.1%. Zhongjin lowers the company's target price.

Zhejiang Sanhua Intelligent Controls (02050) fell more than 3%, dropping by 3.13% to HKD 27.86 as of the time of writing, with a turnover of HKD 2.92 billion. In terms of news, Zhejiang Sanhua Intelligent Controls released its 2025 annual results, with revenue of RMB 31.012 billion, a year-on-year increase of 11%; the company's net profit attributable to owners of the parent company was RMB 4.063 billion, a year-on-year increase of 31.1%. In addition, in the strategic emerging business including the bionic Siasun Robot&Automation electromechanical actuator business, Zhejiang Sanhua Intelligent Controls stated in its 2025 annual report, "The company focuses on improving technology and developing key products in collaboration with customers, and has obtained high praise from customers. A series of innovative achievements around existing products have been achieved, resulting in an overall improvement in product strength." This statement is consistent with the company's interim report in 2025. CICC released a research report stating that Zhejiang Sanhua Intelligent Controls' performance is in line with previous forecasts. The bank pointed out that it maintains the group's 2026 profit forecast unchanged, and introduces a net profit forecast of RMB 5.6 billion for 2027 for the first time. Due to the downward shift in the Hong Kong stock valuation center, the target price is lowered by 20% to HKD 40, and the rating is maintained as "outperform the industry".