Sieyuan Electric (002028.SZ) 3Q26 Masked by Non-Operating Items; Sound Core Profit Growth

Sieyuan's 3Q26 results missed market expectations, but Citi maintains its Buy rating as (i) the miss was primarily owing to non-operating items and forex losses; on a core basis, pre-tax profit rose 27% yoy to Rmb2,940m in 9M26; (ii) revenue growth would accelerate to exceed its target of 25% yoy in 2026E and stay high in 2027E, endorsed by >30% yoy new order growth this year; and (iii) excluding forex impact, the GP margin cut in 9M26 would be trimmed to 0.8ppts yoy from 1.7ppts, within its target of not more than 1ppt yoy. Net profit was +9.7% yoy to Rmb2,403m in 9M26, including +4.5% yoy to Rmb939m in 3Q26, while revenue was +28.5% yoy to Rmb17.8bn in 9M26, comprising +30.7% yoy to Rmb7.0bn in 3Q26. Overseas revenue mix rose to 30% in 9M26 from 27% in 2025, and new orders are guided to grow more than 30% yoy in 2026E, with overseas orders up over 50%. Citi cuts 2026-28E net profits by 5-9% for lower GP margins and more non-operating costs, and lowers its DCF TP by 24.5% to Rmb163/sh