Estun Automation - A Global China Summit takeaways: Management’s focus on quality growth and cash discipline sets a firmer trajectory

Research evidence excerpt

Estun Automation - A Global China Summit takeaways: Management’s focus on quality growth and cash discipline sets a firmer trajectory

J P M O R G A N Asia Pacific Equity Research

21 May 2026

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory

of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

Estun Automation - A

Global China Summit takeaways: Management’s focus Overweight

on quality growth and cash discipline sets a firmer 002747.SZ, 002747 CH

trajectory Price (21 May 26):Rmb28.70

Price Target (Jun-27):Rmb28.00

Estun Automation attended the JPM China Summit on May 20-22, where Infrastructure, Industrials &

management delivered a constructive update on the company’s stepwise progress Transport

in margin expansion and cash flow improvement. The discussion focused on a Karen Li, CFA AC

firmer GPM trajectory, ongoing mix optimisation, and broad-based end-demand (852) 2800-8589

recovery across key verticals. Management reiterated its FY26 target of 5% NPM, karen.yy.li@jpmorgan.com

which remains ahead of consensus expectations, but the Summit provided more Sunny Su

clarity on the operational levers – such as project selectivity, pricing discipline, and (852) 2800 8551

working capital control – that are supporting improved deliverability. Investor sunny.su@jpmorgan.com

sentiment has been notably constructive, with the stock up c.10% today (vs Jenny Qiu, CFA

(852) 2800 8503

CSI300-c1%), bringing the YTD gain to c20% (versus CSI300 +3%), reflecting jenny.qiu@jpmorgan.com

rising confidence in Estun’s execution and a more supportive operating demand

Mufan Shi

backdrop.