The semifinal match lasted just 46 minutes and Sindhu will now face fourth seeded Chinese Taipei's Tai Tzu Ying in the final of the tournament.
Cheung had earlier beaten India's Saina Nehwal on Friday and was the local favourite.
However, Sindhu made some amazing smashes and returns to take the game out of her opponent's grasp.
The first game was a pretty close affair but Sindhu won it in 14 minutes with a margin of 21-14.
She didn't let the advantage fritter and dominated the whole match to emerged victorious.
This will also be Sindhu's second consecutive Super Series final after her victory in the China Open Super Series.
It's been a great year for Sindhu who also won silver at the Rio Olympics, 2016.
Overall, it was a great day for Indian badminton as Sameer Verma too defeated Jan O Jogersen of Denmark and entered his maiden Super Series Final.
The Hyderabad lad defeated his third seeded opponent in a thrilling contest of 21-19, 24-22, lasting nearly 45 minutes.