Understanding the Market | Sanhua's decline expands by over 6%, Goldman Sachs states that market expectations for its humanoid robots are too high

Sanhua Intelligent Control's decline has expanded by over 6%. As of the time of publication, it has dropped by 6.03%, trading at HKD 36.14, with a transaction volume of HKD 640 million. On the news front, Goldman Sachs recently released a research report downgrading Sanhua Intelligent Control's rating to "Neutral," stating that "expectations for humanoid robots are overly high." The core reason for Goldman Sachs' downgrade points directly to "the market's current expectations for the revenue scale and rollout timing of Sanhua Intelligent Control's humanoid robot actuators being overly optimistic." The recent outperformance of Sanhua Intelligent Control's A-shares has partially overdrawn expectations for its robotics business. According to Goldman Sachs' calculations, the current valuation corresponding to Sanhua Intelligent Control's A-share price implies a shipment expectation of 900,000 to 2 million Tesla Optimus robots (assuming a market share of 30%-70% for Sanhua's actuators), while Tesla has previously set a clear target of achieving 1 million robot shipments by 2030, which is clearly difficult to reach in the short term (within the next 12 months)