CICC International: raises target price of Sanhua Intelligent Control (02050.HK) to HK$37.5, rating as "outperform" market.

According to the Wisdom Finance app, Bank of International issued a research report stating that ThreeFlow Intelligent Control (02050.HK) had a strong performance in the first half of the year, with a year-on-year increase of 18.9% in revenue, 39.3% in net profit and 31.7% in core profit. Despite fierce competition, the gross profit margin of the two main businesses still increased by 0.7 percentage points to reach about 28%. The expenditure ratio also improved by 1.5 percentage points to reach 11.8%. The bank pointed out that the compound annual growth rate of the HVAC business will accelerate to approximately 20% in the fiscal years from 2025 to 2027. The bank has raised its profit forecast for ThreeFlow Intelligent Control for the years 2025 to 2027 to 8% to 12%. The bank has also raised its target price for its H shares from HK$26.8 to HK$37.5, with a rating of "outperforming the market".