Sinocera Functional Material (300285.SZ): Earnings Review: 3Q26 revenue beat tempered by softer margins and one-offs; AI materials shipments set to begin in 4Q; Neutral

Sinocera reported 3Q26 results: net profit of Rmb183mn (+16% yoy) was 5% below GSe, while revenue rose 39% yoy to Rmb1.57bn, beating GSe by 19% (SDI, consolidated from July, contributed c.Rmb100mn). Softer GPM and higher SG&A left EBIT of Rmb222mn (+24% yoy) broadly in line. Management attributed the gap between revenue and profit growth to one-off items — FX losses, share-based compensation and SDI acquisition expenses — excluding which 9M26 recurring NP growth would have been close to 40% yoy versus c.12% reported. Growth was driven by robust traditional MLCC powder demand and customer restocking of dental zirconia powder amid rare earth export controls;