ZHEJIANG SUPOR CO. (002032.SZ): 3Q26 Earnings Review: Stable domestic and recovering export; Buy

Supor reported largely in-line 3Q26 results post market close of Oct 22. Total revenue/net profit in 3Q26 was Rmb5,582mn/Rmb405mn, growing by +3%/-5% yoy, which was +2%/-6% vs. GSe. While domestic sales were largely flattish yoy and in-line with expectations/2Q growth, the sequential revenue growth recovery was mainly driven by export (+8% yoy in 3Q vs -11% yoy in 2Q based on our estimates). On margins, GPM decreased yoy impacted by cost inflation but remained qoq stable, and NPM declined at a similar pace with more disciplined expenses offsetting FX losses. On the Oct 23 earnings call, management guided to positive 2026 revenue growth with largely stable export;