CCB International has released a research report maintaining an "Outperform" rating for Sanhua (02050), while reducing the target price from HK$49 to HK$40. The target price for Sanhua (002050.SZ) was also adjusted downward from RMB 55 to RMB 52. The firm anticipates that Sanhua's net profit growth will slow to approximately 15% by 2026. During the earnings presentation, Sanhua's management reaffirmed its strategy aimed at achieving profit growth and improving gross margin. The company's performance in the fourth quarter of last year was weak, with revenue declining by 5.4% year-on-year, net profit increasing by 2.9%, and core net profit edging up by 0.6%. This contrasts with the third quarter's growth of 12.8%, 43.8%, and 48.8% respectively, indicating a slowdown in growth during the final quarter of last year. However, the gross margin expanded by 4.4 percentage points year-on-year to 30.6%, which provided a positive surprise.