Wuhan Raycus Fiber Laser Tech (300747.SZ): Data update post 3Q26 earnings beat; Maintain Sell

Raycus reported an earnings beat for 3Q26 results post Oct 22 market close, in line with the pre-announcement on Oct 14. 3Q26 revenue/gross profit/EBIT/net profit were Rmb1,025mn/254mn/92mn/98mn, +22%/+43%/+191%/+97% yoy from a low base, and +11%/+4%/+29%/+30% vs GSe. GPM/OPM/NPM arrived at 25%/9%/10%, +4pp/+5pp/+4pp yoy. The beats were driven by stronger-than-expected revenue and operating leverage. Management attributed the continued profitability improvement since 1H26 to product mix upgrade (F/U-series 10kW high-efficiency lasers showing price resilience and high-value-added products ramping in new energy/shipbuilding/auto/aerospace) and internal efficiency gains from component standardization, leaner product and higher yields. Raycus is expanding in semiconductor applications based on TGV process breakthroughs for ultrafast lasers;