Sanhua Intelligent Control (stock code: 02050) saw its shares jump 8.58% in the morning session, trading at HK$25.95 with a turnover of HK$146 million. The company recently issued an earnings forecast, projecting revenue between 15.04 billion yuan and 17.78 billion yuan for the first half of 2025, marking a 10% to 30% year-over-year increase. Net profit attributable to shareholders is expected to hit 1.89 billion yuan to 2.27 billion yuan, up 25% to 50%.

Dongwu Securities highlighted that Sanhua's better-than-expected second-quarter performance stems from robust demand in its refrigeration and air-conditioning business, coupled with expanded orders in automotive components through benchmark client demonstrations. Cost-cutting and efficiency gains further bolstered results. Despite short-term disruptions in humanoid robot production, Sanhua maintains its Tier 1 supplier status with significant future profit potential. The firm is developing a full range of electromechanical actuators, earning strong recognition from major clients and securing a dominant supply position.

Assuming 1 million units shipped between 2028 and 2029, each actuator assembly priced at 50,000 yuan with a 10% net profit margin and Sanhua holding a 70% market share, profits could surge by 3.5 billion yuan. Separately, Hang Seng Indexes Company will announce its quarterly review results on August 22 for implementation starting September 8. A+H dual-listed stocks like Sanhua's Hong Kong shares can enter the Stock Connect program earlier, without waiting for periodic adjustments—typically after a 30-day price stabilization post-IPO. Thus, Sanhua's Hong Kong shares are set for inclusion on July 21.