Rianlon (300596.SZ) — Earnings Review: Record 3Q26 profit on resilient margins; maintain Buy

Rianlon reported 3Q26 results on Oct 27 after market close and held an analyst call on Oct 28. 3Q26 delivered a new record-high net profit despite FX headwinds and elevating raw material prices. The beat was mainly driven by a record-high gross margin, supported by resilient profitability in polymer stabilizers, where an improved geographic/product mix and smooth cost pass-through offset sequential volume normalization, as well as continued margin recovery in lubricant additives. Topline saw solid growth in 3Q, in line with GSe. Looking ahead, management shared the impact of rising freight rates on polymer stabilizers should be limited, as freight is only a small share of the selling price. Management expects lubricant additives GPM to keep recovering and potentially reach 19%-20% in 2027. Management acknowledged that the earlier 2026 lubricant additives shipment target now looks challenging, but still expects c.30% volume growth in 2027, assuming ongoing road/marine tests are complete