In-Depth Analysis of Automotive Components Business Growth for Sanhua Intelligent Controls

Now let me present a comprehensive analysis report on the automotive components business growth of Sanhua Intelligent Controls.

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Sanhua Intelligent Controls (Zhejiang Sanhua Intelligent Controls Co., Ltd.) is a leading Chinese enterprise in the fields of refrigeration control components and automotive thermal management system parts. The company operates across

: refrigeration and air conditioning electrical components business, and automotive components business, and is actively expanding into emerging fields such as bionic robot electromechanical actuators[0][1].

Business Segment	Revenue Share	Main Products
Refrigeration and Air Conditioning Electrical Components	~60%	Four-way reversing valves, electronic expansion valves, microchannel heat exchangers, stop valves
Automotive Components	~36%	Automotive electronic expansion valves, heat pump systems, integrated thermal management modules
Robotics/Other	~4%	Electromechanical actuators, bionic robot components

The company’s core competitive advantage lies in its

: it has established overseas production bases in Poland, Mexico, Thailand, Vietnam, etc., and also has a production plant in the United States, forming a complete global production network. In the first half of 2025, the company’s overseas sales reached RMB 7.211 billion, accounting for 44.34% of total sales[2].

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According to the performance forecast released by the company on December 22, 2025[1][3]:

Financial Indicator	2025 Forecast	2024 Actual	YoY Growth
Net Profit Attributable to Shareholders	RMB 3.874-4.649 billion	RMB 3.099 billion	+25% to +50%
Non-recurring Net Profit	RMB 3.679-4.615 billion	-	+18% to +48%
Basic Earnings per Share	RMB 0.98-1.18	-	-

• 2015-2024: Net profit attributable to shareholders grew steadily from RMB 0.605 billion to RMB 3.099 billion, achieving
  10 consecutive years of growth
• 2022 marked a growth peak (revenue +33.25%, net profit +52.81%)
• After slowing growth in 2023-2024, the company saw a
  strong rebound
  in 2025

As of January 19, 2026, the closing price of Sanhua Intelligent Controls was

(equivalent to approximately RMB 430 per share), representing extremely strong stock performance[0]:

Period	Growth
Past 1 Month	+34.71%
Past 3 Months	+35.18%
Past 6 Months	+111.56%
Past 1 Year	+104.83%
Past 3 Years	+134.90%

In June 2025, the company successfully listed on the Hong Kong Stock Exchange, completing its “A+H” dual-platform layout, which further enhanced its financing capabilities and brand influence in the international capital market[2].

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Sanhua Intelligent Controls holds a

in thermal management for new energy vehicles. The market share data for its core products is as follows[4][5]:

Product Category	Global Market Share	Industry Position
Automotive Electronic Expansion Valve	>50%	Global No.1
Integrated Modules	65.6%	Global No.1
Four-Way Reversing Valve	-	Global No.1
Electronic Expansion Valve (Refrigeration)	-	Global No.1

This

forms the company’s core moat.

The company is deeply partnered with leading global new energy vehicle enterprises, with customers including[4][5]:

• Tesla:
  Exclusive supplier of thermal management systems from Model 3 to Cybertruck
• Traditional automotive giants such as
  Volkswagen, Mercedes-Benz, Ford, BMW

• New energy vehicle startups such as
  BYD, Li Auto, NIO, XPeng

• Automotive thermal management capacity will reach
  1.5 million units
  in 2025
• Orders are scheduled through
  2027
  , with sufficient order backlog[4]

As the

becomes the industry mainstream, the per-vehicle value of thermal management systems for new energy vehicles has increased significantly:

Platform Type	Per-Vehicle Thermal Management Value
Traditional 400V Platform	Approximately RMB 2,000
800V High-Voltage Platform	Over RMB 4,000

This trend has directly driven

for the company’s automotive components business.

1. Continuous increase in new energy vehicle penetration:
   The global new energy vehicle market is growing rapidly, driving demand for thermal management systems
2. Benchmark customer demonstration effect:
   Recognition from leading customers such as Tesla and BYD brings continuous high-quality orders to the company
3. Global capacity layout:
   Expansion of overseas factories (Mexico, Poland, Vietnam, Thailand) supports international business growth
4. Technology iteration and upgrade:
   Integrated thermal management systems improve battery efficiency, reduce energy consumption, and enhance product competitiveness

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After the release of the performance forecast, mainstream institutions gave

[1][3]:

Institution	Rating	Core View
CICC	Outperform	Stable position as a global thermal management leader, leading global layout, robotics business opens up growth space
Soochow Securities	Buy	Humanoid robot mass production is imminent, stable position as a core supplier, vast growth space

According to consensus institutional forecasts[4]:

Forecast Year	Net Profit Attributable to Shareholders Forecast	YoY Growth
2025	RMB 4.067 billion (average)	+30.7%
2026	RMB 5.09 billion	+21%
2027	RMB 6.79 billion	+33%

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Sanhua Intelligent Controls has successfully entered the field of

and become a core supplier for Tesla’s humanoid robot[4][6]:

• Supply Share:
  Accounts for
  50-70%
  of the actuator supply chain
• Per-Unit Value:
  RMB 28,000 per unit
• 2025 Orders:
  Has received RMB 5.4 billion in robot-related orders from Tesla (RMB 5 billion main order + RMB 400 million supplementary order)

The company has invested

to build a robot actuator production base:

• Planned annual production capacity of
  5 million units
• Trial production in Q4 2025
• Official capacity release in 2026

If Tesla’s Optimus achieves mass production targets[4]:

• 2026 production volume of 50,000-100,000 units → Sanhua Intelligent Controls contributes approximately RMB 350 million in profit
• 2028 production volume exceeding 1 million units → Profit contribution can reach RMB 3.8 billion (equivalent to 1.2 times the 2024 net profit)

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Indicator	Value	Industry Comparison
ROE (Return on Equity)	16.12%	Excellent
Net Profit Margin	12.86%	Relatively High
Gross Profit Margin	-	Need Attention
P/E (Price-to-Earnings Ratio)	60.80x	Higher than Industry Average

Indicator	Value	Evaluation
Current Ratio	2.31	Excellent
Quick Ratio	1.97	Healthy
Debt Risk	Low Risk	Stable

Financial analysis shows that the company has a

, , and an overall stable financial situation[0].

The current P/E (TTM) is

, which is higher than the industry average of approximately 25x for home appliance components and new energy vehicle components. This valuation premium mainly comes from[4]:

• High growth expectations for the robotics business
• Scarcity as a thermal management leader
• Advantages in global layout and technological barriers

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1. Valuation correction risk:
   The current stock price has partially priced in growth expectations for the robotics business; if performance falls short of expectations, it may trigger a valuation correction
2. Customer concentration risk:
   Large customers such as Tesla and BYD account for a relatively high proportion, leading to high customer concentration
3. Slowing industry growth:
   If the growth rate of new energy vehicle penetration slows, it may affect the growth of thermal management demand
4. Raw material price volatility:
   Fluctuations in commodity prices such as copper and aluminum affect gross profit margin
5. Technology iteration risk:
   New technologies such as solid-state batteries may change the demand pattern for thermal management
6. Increased competition:
   If international giants enter the market aggressively, it may compress profit margins

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Dimension	Highlight
Track	Global leader in new energy vehicle thermal management, benefiting from industry growth
Moat	Global market share of over 50% in electronic expansion valves, deep technological barriers
Customers	Deeply partnered with leading automakers such as Tesla and BYD, with sufficient orders
Growth	High-speed growth in automotive business, robotics business opens up growth ceiling
Globalization	Well-established overseas capacity layout, significant international advantages

• Refrigeration + Automotive Business:
  20-25x PE, corresponding to a market capitalization of RMB 80-100 billion
• Robotics + Liquid Cooling Business:
  High-growth segment, with a valuation premium of RMB 40-60 billion
• Overall Reasonable Market Capitalization Range:
  RMB 120-160 billion

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• Top Left:
  The stock price rose strongly in 2025, from approximately RMB 21.97 at the beginning of the year to a high of RMB 58.56, representing a growth rate of over 160%
• Top Right:
  After slowing in 2023-2024, the revenue growth rate is expected to rebound to around 25% in 2025
• Bottom Left:
  In the business structure, refrigeration and air conditioning electrical components account for approximately 60%, and automotive components account for approximately 36%
• Bottom Right:
  Core competitiveness indicators show that the company is a global leader in electronic expansion valves (>50%) and integrated modules (65.6%)

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As a

in thermal management for new energy vehicles, Sanhua Intelligent Controls’ automotive components business shows strong growth momentum. The 2025 performance forecast of 25%-50% growth confirms the effectiveness of the company’s “” strategy: the traditional refrigeration business provides stable cash flow, while the automotive thermal management business contributes high growth momentum.

Looking ahead, the company is expected to continue benefiting from:

1. Increased global penetration of new energy vehicles
2. Increased per-vehicle value brought by the popularization of 800V high-voltage platforms
3. Volume growth of Tesla’s Optimus robot business
4. Release of dividends from global capacity layout

In the long term, the company’s dual attributes of

make it a key investment target worthy of attention in the new energy industry chain.

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[0] Jinling API - Company Overview and Market Data for Sanhua Intelligent Controls (SZ002050)

[1] The Paper - “Sanhua Intelligent Controls’ 2025 Performance Forecast Improves as Two Core Business Segments Synergize” (https://www.thepaper.cn/newsDetail_forward_32239454)

[2] Sina Finance - “Sanhua Intelligent Controls Returns to High Growth, Full-Year Net Profit Forecast Exceeds RMB 3.87 Billion; Completes A+H Layout, Overseas Sales Account for 40%” (https://finance.sina.com.cn/roll/2025-12-24/doc-inhcwafv4711258.shtml)

[3] Wall Street CN - “Dual-Wheel Drive Fuels Performance Surge! Sanhua Intelligent Controls: Expects 2025 Net Profit of RMB 3.874 Billion - 4.649 Billion” (https://wallstreetcn.com/articles/3761847)

[4] Youjia/Baidu Auto - “Global Market Share No.1! Sanhua Intelligent Controls Partners with Tesla” (https://youjia.baidu.com/view/articleDetail/9920052102028609116)

[5] Caifuhao/East Money - “Sanhua Intelligent Controls: From Automotive Components to a Key Node in New Energy Thermal Management” (https://caifuhao.eastmoney.com/news/20251205085432834853290)

[6] Investment Journal - “Sanhua Intelligent Controls’ Market Capitalization Reaches RMB 190 Billion, Father-Son Duo from Zhejiang Gains Prominence” (https://news.pedaily.cn/202509/555491.shtml)