Huaming (002270.SZ): 3Q26 in line; Reiterate Buy on steady overseas growth

Huaming reported in-line 3Q26 results, with revenue, gross profit and net profit all growing yoy and margins holding up on better expense control. Overseas revenue for on-load tap changers grew fast and accelerated versus 1H26, led by Europe (particularly Turkey) and Asia, lifting the overseas mix and carrying structurally higher margins than the domestic business. Domestic revenue declined slightly on seasonally limited maintenance demand, while management is constructive on next year's grid investment recovery. As China's dominant tap changer supplier, Huaming should keep gaining global share on comparable product quality, faster delivery and new capacity in Turkey and Indonesia. We reiterate Buy, see attractive valuation and compelling risk-reward, and raise EPS forecasts and our 12-month target price. Key downside risks: slower overseas share gains, weaker margins and softer domestic revenue growth.