A Significant Move for SANHUA Globalization
Chinese global largest manufacturer of refrigeration and air conditioning control components, Zhejiang Sanhua Intelligent Controls Co., Ltd. (SANHUA, 002050.SZ) is set to initiate its Hong Kong listing management NDR (non-deal roadshow) on March 27, with an expected transaction size of approximately USD 1 billion (CNY 7.2 billion).
On January 15, 2025, SANHUA submitted its listing application to the Main Board of the Hong Kong Stock Exchange, with China International Capital Corporation and Huatai International Securities serving as joint sponsors.
SANHUA is a leading supplier of automotive thermal management system components. The company originated from the Xinchang Refrigeration Accessories Factory established in 1984, was formerly known as SANHUA Fudou Kogyo Co., Ltd., a Sino-Japanese joint venture established in 1994, and underwent shareholding reform in 2001, listing on the Shenzhen Stock Exchange in 2005.
The company is mainly engaged in the research, development, manufacturing, and sales of refrigeration and air conditioning electrical components and automotive components. Focusing on the research and application of heat pump technology and thermal management systems, the company specializes in developing environmental thermal management solutions that achieve efficient heat exchange and intelligent temperature control. In addition, the company is actively researching and developing bionic robot electromechanical actuators.
According to Frost & Sullivan, in 2023, SANHUA ranked first in the refrigeration and air conditioning control components market. By sales volume, the company's market share for four-way reversing valves, electronic expansion valves, microchannel heat exchangers, stop valves, and solenoid valves was 58.7%, 58.1%, 42.9%, 37.0%, and 52.6%, respectively; by shipment volume, the market share of its Omega pump was 52.3%, all ranking first. In terms of vehicle electronic expansion valves and integrated components, the company ranked first in sales volume in 2023, with market shares of 52.6% and 65.7%, respectively.
Financially, from 2022 to the first nine months of 2024, SANHUA recorded revenues of approximately CNY 213.48 billion, CNY 245.58 billion, and CNY 205.63 billion, respectively, with corresponding profits of approximately CNY 26.08 billion, CNY 29.34 billion, and CNY 23.20 billion.
