Hainan Drinda New Energy Tech (002865 CH/2865 HK): Positive on Three Converging Inflection Points

Hainan Drinda New Energy Technology (Drinda) reported 3Q26 revenue of RMB2.04bn, up 1.17% YoY and 37.38% QoQ, and an attributable net loss of RMB175mn, widening 12.92% YoY but narrowing 34.41% QoQ. For 9M26, revenue was RMB5.22bn, down 8.08% YoY, while the attributable net loss widened 2.25% YoY to RMB428mn. The sequential loss reduction in 3Q26 mainly reflected lower asset-impairment charges, with gross profit broadly flat QoQ. We see three potential inflection points converging: 1) solar anti-involution measures are entering substantive implementation, with cell profitability already recovering, and the cell segment's greater exposure to technology upgrades could support earnings upside; 2) solar technology export controls have been introduced, potentially reinforcing the company's technological moat given its high-efficiency cell capacity and substantial overseas business exposure, with its 2.5GW cell facilities in Türkiye already operational;