Morgan Stanley raised the target price of SANHUA to 42 yuan and adjusted the forecasts for 2025 to 2027

JP Morgan has raised the average financial forecast for SANHUA (02050.HK) for 2025 to 2027 by 20% to reflect better-than-expected third-quarter performance and management's upgraded guidance. Information obtained from industry conferences further strengthens its confidence in SANHUA's long-term growth, with key trends including strong momentum in emerging fields such as humanoid robots and AI DC liquid cooling, resilience in the automotive parts business, and the integrity of the global supply chain architecture.

The performance outlook for the fourth quarter of this year and next year indicates that, even in the face of a high base, the company's earnings growth and margin expansion will continue. Although the company's H and A shares have pulled back since October, mainly due to profit-taking by investors, considering the company's robust fundamentals and strategic positioning in key areas, the bank believes this is a buying opportunity; it has raised the target price for SANHUA's H shares from HKD 41 to HKD 42, and the target price for SANHUA's A shares from RMB 43 to RMB 49, maintaining an "overweight" rating