Shares of Zhejiang Sanhua Intelligent Controls (HKG:2050) surged 5.63% in pre-market trading on Wednesday, following the company's announcement of a promising profit forecast for the first half of 2025.

The refrigeration and air-conditioning components maker projected a significant increase in its net profit for H1 2025, estimating a rise of 25% to 50% to between 1.89 billion yuan and 2.27 billion yuan, up from 1.51 billion yuan in the same period last year. The company also anticipates its earnings per share to grow to between 0.51 yuan and 0.61 yuan, compared to 0.40 yuan in the prior-year period.

Sanhua attributes this positive outlook to two main factors: accelerated growth in its core refrigeration and air conditioning components business, and increased orders for thermal management systems in new energy vehicles. The company also forecasts a 10% to 30% rise in operating revenue, projecting between 15 billion yuan and 17.8 billion yuan for the first half of 2025. This optimistic forecast has clearly resonated with investors, driving the stock's significant pre-market rally.