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Zhejiang Sanhua Intelligent Controls Co (002050) Fair Value & Analysis

Industrials · CN · Market cap 182B CNY

ZS Zhejiang Sanhua Intelligent Controls Co 002050 · SHE
Price¥38.71
Fair Value¥22.68
Upside-41.4%
Quality48/100
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Mixed Growth
Solidly profitable · 13.1% net margin
Low debt · generates free cash flow
0.93% dividend yield
Trails peers (5/14)
Moderate moat 59/100
Evidence: High Range ¥15.80 – ¥27.93 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 26 days ago

Fair value updated Jul 12, 2026, revised from ¥22.87 to ¥22.68 (−0.8%) since Jun 25, 2026. Share price −14.9% over the past month.

Below-average quality, and screening another 41% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥27.93). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥58.56 ¥12.69 Fair Value ¥22.68 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥12.69 – ¥58.56 · fair‑value band ¥15.80 – ¥27.93 · the ¥38.71 price screens above the ¥22.68 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Zhejiang Sanhua Intelligent Controls Co (002050) currently trades at ¥38.71, while our model-based Fair Value estimate is ¥22.68, implying the stock looks roughly 41.4% overvalued today. We read business quality at 48/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Zhejiang Sanhua Intelligent Controls Co generated revenue of 31.1B CNY at a net margin of 13.1%. Revenue grew 1.4% year over year. It earns a return on equity of 15.5%. The balance sheet holds a net cash position of 6.3B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥15.80 (bear case) to ¥27.93 (bull case); at ¥38.71, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 36% below its 52-week high and 63% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -42% fair-value upside, at -41%, 002050 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥11.50 ¥19.23 ¥33.69 80
Residual Income ¥8.05 ¥9.81 ¥21.77 76
Rev-Margin DCF ¥14.84 ¥26.46 ¥43.57 74
All 26 models by family
DCF Models
FCF DCF ¥11.83 ¥17.68 ¥33.82 38
Owner Earnings ¥12.43 ¥22.99 ¥44.73 31
5Y Revenue Exit ¥14.84 ¥25.89 ¥45.74 39
5Y EBITDA Exit ¥17.01 ¥30.66 ¥53.54 41
5Y P/E Exit ¥17.42 ¥33.23 ¥53.49 38
10Y Revenue Exit ¥13.44 ¥25.41 ¥42.00 36
10Y EBITDA Exit ¥15.43 ¥29.41 ¥54.97 37
10Y P/E Exit ¥15.71 ¥30.16 ¥54.93 35
Earnings-Based
Graham-Dodd ¥7.40 ¥49.72 ¥69.66 54
Lynch FV ¥14.56 ¥20.80 ¥27.04 50
PEG = 1.0 ¥14.56 ¥20.80 ¥27.04 46
EPV ¥14.21 ¥15.95 ¥17.48 59
Dividend Discount
Gordon GGM ¥3.54 ¥7.35 ¥11.66 70
DDM Multi-Stage ¥3.54 ¥6.20 ¥7.72 61
Multiples
P/E Multiple ¥16.33 ¥21.78 ¥27.22 63
P/S Multiple ¥13.88 ¥18.51 ¥23.14 58
P/B Multiple ¥13.88 ¥18.51 ¥23.14 55
EV/EBIT ¥21.24 ¥27.07 ¥32.89 53
EV/EBITDA ¥19.51 ¥24.76 ¥30.00 54
EV/Revenue ¥15.54 ¥20.59 ¥25.64 43
Asset-Based
NCAV (Graham) ¥4.25 ¥5.70 ¥8.51 50
Growth DCF
Growth DCF ¥11.50 ¥19.23 ¥33.69 80
Rev-Margin DCF ¥14.84 ¥26.46 ¥43.57 74
Economic Profit
Residual Income ¥8.05 ¥9.81 ¥21.77 76
ROIC Compounder ¥16.69 ¥22.49 ¥30.64 72
Growth Earnings
Growth-Adj P/E ¥19.78 ¥28.26 ¥36.74 68

Widest divergence: Growth Earnings (¥28.26) versus Asset-Based (¥5.70). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 31.1B CNY
Revenue growth (YoY) +1.4%
Net margin 13.1%
Return on equity 15.5%
Free cash flow 2.0B CNY FY2025
P/E ratio 47.0
More key figures
Operating margin 16.9%
EPS (TTM) ¥1.01
Dividend yield 0.9%
EPS growth (YoY) -8.0%
Net cash 6.3B CNY FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 51 · Market factors (momentum, volatility) 48

Profitability 48
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 99
Balance sheet, leverage, solvency risk
Investment 18
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 61
Distance to the 52-week high (market factor)
Net Issuance 28
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Zhejiang Sanhua Intelligent Controls Co.,Ltd engages in the research, manufacture, and sale of refrigeration and air-conditioning electrical parts, and auto parts in China and internationally.

Full company description

Zhejiang Sanhua Intelligent Controls Co.,Ltd engages in the research, manufacture, and sale of refrigeration and air-conditioning electrical parts, and auto parts in China and internationally. Its products include valves, four-way reversing valves, electronic and thermal expansion valves, solenoid valves, micro-channel heat exchangers, omega pumps, electronic water pumps, energy vehicle thermal management integrated components, and accumulators. The company's products are used in air conditioners, refrigerators, cold chain logistics, and dishwashers, as well as automobiles and other fields. Zhejiang Sanhua Intelligent Controls Co.,Ltd was founded in 1994 and is headquartered in Shaoxing, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Sanhua Intelligent Controls Co reported revenue of ¥30.9B in FY2025 versus ¥16.0B in FY2021, a compound +17.9%/yr. Reported net income was ¥4.1B in FY2025, compounding +24.6%/yr from FY2021.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
30.9B CNY
Latest YoY
+10.7%
Avg. growth/yr (3Y)
+13.2%
Avg. growth/yr (5Y)
+20.6%
Avg. growth/yr (23Y)
+26.7%
Revenue +17.9%/yr
FY21 ¥16.0B
FY22 ¥21.3B
FY23 ¥24.6B
FY24 ¥27.9B
FY25 ¥30.9B
Net income +24.6%/yr
FY21 ¥1.7B
FY22 ¥2.6B
FY23 ¥2.9B
FY24 ¥3.1B
FY25 ¥4.1B

002050 screens 41% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Zhejiang Sanhua Intelligent Controls Co Fair Value". https://www.fairvalue-calculator.com/stock/002050

Peer Group

Specialty Industrial Machinery · 807 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside −41% · Below median
Return on equity (TTM) 15% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 1% · Below median
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.03× · Lower than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 42.8× · Pricier than median
P/B 5.73× · Pricier than 75% of peers
P/S (TTM) 5.84× · Pricier than 75% of peers
P/FCF 13.7× · Pricier than median
EV/EBITDA 26.9× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 7 · sector 23
PAST 62 · sector 28
HEALTH 99 · sector 96
DIVIDEND 19 · sector 24

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €967.60 €212.97 -78%
1SIE 1SIE €284.30 €122.46 -57%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%
Alfa Laval AB ALFA kr 564.60 kr 372.32 -34%

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Frequently asked questions

Is Zhejiang Sanhua Intelligent Controls Co (002050) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥22.68 versus a price of ¥38.71, about −41% (overvalued).
What is the fair value of 002050?
Our model-based fair value for Zhejiang Sanhua Intelligent Controls Co is ¥22.68 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥38.71.
What is the quality score of 002050?
Zhejiang Sanhua Intelligent Controls Co has a Quality Score of 48/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Zhejiang Sanhua Intelligent Controls Co (002050)?
Zhejiang Sanhua Intelligent Controls Co reported trailing-twelve-month revenue of about 31.1B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 002050?
The net profit margin of Zhejiang Sanhua Intelligent Controls Co is about 13.1%, meaning it keeps roughly 13.1% of revenue as net income. Based on the latest reported figures.
Does Zhejiang Sanhua Intelligent Controls Co pay a dividend?
Zhejiang Sanhua Intelligent Controls Co currently shows a dividend yield of about 0.85% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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