ORIENT ZIRCONIC (002167.SZ): Expanding emerging demand and an optimized product mix drive a 3Q earnings surge

The company releases its 9M26 performance forecast: net profit attributable to shareholders of the parent company is expected to reach RMB140mn-180mn, up 261.93%-365.34% YoY; net profit excluding non-recurring gains and losses is expected at RMB140mn-180mn, up 263.64%-367.53% YoY; basic EPS is expected at RMB0.1807-0.2324. Based on the midpoint, 9M26 net profit attributable to shareholders is approximately RMB160mn, up 313.6% YoY, with 3Q26 alone at approximately RMB59.73mn-99.73mn, up 521.9%-938.4% YoY and -0.5% to +66.2% QoQ. The identical ranges for net profit and net profit excluding non-recurring items indicate minimal contribution from non-recurring gains and losses, so earnings growth was driven by the core business and was of high quality. Temporary capacity cuts by leading overseas high-end zirconia producers such as Tosoh and Daiichi Kigenso Kagaku Kogyo create opportunities for Chinese players to take on relocated capacity and accelerate import substitution, while emerging d