CMBI Initiates Sanhua Intelligent Controls at Buy, Says Robot Business Undervalued

CMBI (China Merchants Bank International) has initiated coverage on Sanhua Intelligent Controls' H-shares with a "Buy" rating and a target price of HK$30. The bank notes that Sanhua is a global leader in thermal management control components. Leveraging similarities in underlying technology and its customer base, the company is expanding from refrigeration, air conditioning, and automotive thermal management into AI data center (AIDC) liquid cooling and humanoid robots. CMBI believes the market has not fully priced in the potential of Sanhua's robotics business. As humanoid robot commercialization accelerates, the company is well-positioned to open new growth avenues based on its thermal management expertise and customer resources. The broker expects robotics to become a third growth curve after refrigeration/AC and automotive thermal management. The rating highlights the company's strategic move into high-growth segments.