Sanhua Intelligent Controls (002050.SZ): 3Q26 OP in line with FX and equity investment loss; maintain Buy/Neutral for H/A on cooling &

Post market close on Oct 28, Sanhua announced largely inline 3Q26 results, with revenue/GP/EBIT/NP at Rmb8,374mn/2,419mn/1,261mn/1,023mn, +8%/+11%/+7%/-10% yoy, +0%/+0%/-7%/-12% vs. GSe; GPM/OPM/NPM was 29%/15%/12%. Core operations were broadly in line, with the net profit miss mainly affected by one-off FX loss in 3Q26 and 9M26, and loss from fair value of investments in 3Q26 and 9M26. We revise down 2026E-30E earnings by 2-6% to reflect the result. We are Buy-rated on Sanhua-H and Neutral-rated on Sanhua-A. We remain positive on Sanhua's stable main business and tailwinds from 1) liquid cooling, achieving strong revenue in 9M26 with meaningful firmwide contribution and potentially another 50-100% yoy growth in 2027E, driven by positive product development and certification progress;