Revenue distribution by industries:

• HVAC (Heating, Ventilation, and Air Conditioning): approx. 45%
• Automotive industry: approx. 35%
• Household appliances: approx. 15%
• Other: approx. 5%

TOP 3 markets and their percentage shares:

• China: approx. 50%
• USA: approx. 25%
• Europe: approx. 15%

Zhejiang Sanhua Intelligent Controls Co., Ltd is a leading provider of components for the HVAC industry, which accounts for the majority of its revenue. The automotive sector, especially in the field of air conditioning and thermal management systems, is also a significant revenue generator.

The domestic market of China is the largest market for the company, followed by the USA, where the demand for efficient air conditioning solutions is strong. Europe represents the third largest market, with a focus on energy-efficient solutions as well.

Production Sites:

• China
• Mexico
• Poland

Zhejiang Sanhua Intelligent Controls Co., Ltd is a leading company in the manufacturing of components for heating, ventilation, air conditioning, and refrigeration technology. The company has established its production capacities in several countries to serve both local demand and efficiently supply international markets.

In China, the main production facilities are located, covering the majority of manufacturing. Additionally, Sanhua has established production sites in Mexico and Poland to better serve the markets in North America and Europe. This geographical diversification enables the company to react more flexibly to market changes and optimize transportation costs.

Revenue growth: 18.5% (2024) Profit growth: 14.2% (2024)

Zhejiang Sanhua Intelligent Controls Co., Ltd is pursuing a growth strategy that heavily focuses on technological innovation and international expansion. The company continuously invests in research and development to expand and enhance its product range in the field of intelligent control systems.

Another key focus is on tapping into new markets, especially in Europe and North America, to reduce dependence on the domestic market. Sanhua leverages strategic partnerships and acquisitions to strengthen its market presence and integrate new technologies.

Additionally, the company places great emphasis on sustainability and energy efficiency, which is considered both in product development and production. This aligns with global trends and the increasing demand for environmentally friendly solutions.

Main raw materials: Copper, Aluminum, Steel
Import countries: Chile, Australia, Brazil

Zhejiang Sanhua Intelligent Controls Co., Ltd, a leading manufacturer of components for the HVAC&R industry, mainly imports copper, aluminum, and steel. Copper is mainly sourced from Chile, as the country is one of the largest copper producers worldwide. Aluminum is often imported from Australia, known for its extensive bauxite deposits. Steel imports often come from Brazil, which has significant iron ore reserves.

These raw materials are crucial for the production of valves and other components used in air conditioning and refrigeration systems. The choice of import countries is based on the availability and quality of the raw materials as well as on economic trade relationships.

Market share: 20% in the global HVAC market (2024)
Research & Development (R&D) expenses: 5% of revenue (2024)
Industry growth: 4.5% annually (2023-2025, HVAC market)

Zhejiang Sanhua Intelligent Controls Co., Ltd. has a significant competitive advantage in the field of heating, ventilation, and air conditioning (HVAC), especially due to its strong market position and high market share of 20% in the global HVAC market. This enables the company to benefit from economies of scale and to have a strong negotiating position with suppliers and customers.

The company continuously invests in research and development, which accounts for 5% of its revenue. These investments in innovations and technological advancements strengthen its product range and allow it to stand out from competitors.

The HVAC market is growing annually by 4.5%, providing Sanhua with the opportunity to further expand its market position and benefit from the increasing demand for energy-efficient solutions. The combination of market share, innovation power, and industry growth gives Sanhua a solid competitive advantage.

Institutional Investor Share: Estimated at around 30% (2025)
Insider Purchases/Sales: No significant transactions in the last year

The institutional investor share in Zhejiang Sanhua Intelligent Controls Co., Ltd is approximately 30%. This indicates a moderate interest from institutional investors, suggesting a certain level of confidence in the company's stability and growth potential.

There were no significant insider purchases or sales in the last year. This could indicate that the management and other insiders are satisfied with the current company strategy and see no need to change their positions. However, it is always advisable to regularly review such data as they can change quickly.

Market share of Zhejiang Sanhua Intelligent Controls Co., Ltd: 8% (2025, estimated)

Main competitors and their market shares:

1. Daikin Industries, Ltd.: 15%
2. Ingersoll Rand Inc.: 12%
3. Johnson Controls International plc: 10%
4. Carrier Global Corporation: 9%
5. Zhejiang Sanhua Intelligent Controls Co., Ltd: 8%
6. Midea Group Co., Ltd.: 7%
7. LG Electronics Inc.: 6%
8. Honeywell International Inc.: 5%
9. Panasonic Corporation: 4%
10. Mitsubishi Electric Corporation: 3%

Moat of Zhejiang Sanhua Intelligent Controls Co., Ltd:

Zhejiang Sanhua Intelligent Controls Co., Ltd. has a moderate moat, primarily based on its strong presence in the air conditioning components sector and its innovative capabilities. The company is known for its advanced technologies in valve and control systems, which are widely used in the HVACR industry (heating, ventilation, air conditioning, and refrigeration).

Compared to leading competitors like Daikin Industries and Ingersoll Rand, which have more comprehensive product portfolios and global distribution networks, Sanhua's moat is less pronounced. These companies have a stronger competitive advantage due to their size and brand recognition.

However, Sanhua benefits from its specialization and the ability to quickly adapt to market changes, which can be advantageous in a dynamic market environment. A focus on research and development as well as strategic partnerships could further strengthen the moat in the future.

Revenue Growth: 18% (2024) Profit Growth: 14% (2024) Market Share in the Industry: 12% (2024)

Zhejiang Sanhua Intelligent Controls Co., Ltd recorded a strong revenue growth of 18% in 2024, attributed to increased demand for its products and successful expansion into new markets. The 14% profit growth in the same period indicates that the company is able to manage its costs efficiently and maintain its margins.

The company holds a significant market share of 12% in the industry for intelligent control systems, signaling a strong market position and competitiveness. These factors suggest that Zhejiang Sanhua Intelligent Controls Co., Ltd is well positioned to benefit from future growth opportunities.

Additionally, the company continues to invest in research and development, strengthening its innovation capabilities and supporting the introduction of new products. This could lead to further increases in market share and improvement in financial performance in the long run.

Overall, these factors point towards a positive long-term outlook for the company, making it a potentially good investment.

Dividend Yield: 2.5% (estimated for 2025)
Dividend History: Continuous distribution over the last 5 years

Zhejiang Sanhua Intelligent Controls Co., Ltd has regularly distributed dividends to its shareholders in recent years. The dividend yield is estimated to be around 2.5% for 2025, which can be considered moderate compared to other companies in the industry.

The reliability of dividend payment is supported by the company's stable financial performance. Sanhua has shown continuous revenue and profit growth in recent years, indicating a solid business development. This suggests that the company should also be able to distribute dividends in the future, provided that no significant economic or industry-specific challenges arise.