J.P. Morgan ASEAN FTM 29 May 26 URC: Out of stock, d/g to UW; IJM: Delivery drives the re-rating; PMAH: Expect sequential earnings growth in 2Q; MAY: Capital return is key; NATGATE: Margins compress, 1Q miss

Research evidence excerpt

J.P. Morgan ASEAN FTM 29 May 26 URC: Out of stock, d/g to UW; IJM: Delivery drives the re-rating; PMAH: Expect sequential earnings growth in 2Q; MAY: Capital return is key; NATGATE: Margins compress, 1Q miss

Asia Pacific Equity Research

ASEAN First to Market 29 May 2026

Top Stories

| Universal Robina Corp (Jeanette Yutan) (URC PM, UW, PT Php55.00), Philippines

Out of Stock: Earnings buffer running low - costs rising, pricing capped; downgrade to UW

We downgrade URC from N to UW and set a Dec-26 PT of Php55. URC is down by 10% YTD vs. PSEi -3.2%, with the stock

screening optically inexpensive at a 15Y low forward P/E of 10.3x. We don’t view the de-rating as sufficient to arrest the

underperformance. We expect an earnings downgrade cycle to underpin the continued stock price underperformance. In our

view, the market is still underpricing the magnitude and duration of URC’s margin and demand risks.

IJM (Yen Voo, CFA, CA) (IJM MK, N, PT RM2.30), Malaysia

RM3bn is the narrative, delivery drives the re-rating; stay Neutral

IJM’s weak FY26 earnings were largely expected, and the focus is on whether management’s RM3bn value realization

initiatives can rebuild confidence after the stock’s sharp de-rating following the unsuccessful takeover proposal (-23% from its

YTD peak of ~RM2.80, vs. KLCI -2%). Near-term sentiment will hinge on IJMC listing execution (targeted by 3QCY27) and

speed of capital recycling, key to narrowing the holding company discount and restoring investor expectations. We lower our

FY27E/FY28E earnings by 3-21% to reflect weaker operating margins and property sales . Accordingly, we lower our Dec-26

price target to RM2.30 (from RM2.60), based on an SOTP valuation, implying a 16x FY28E PE. Maintain Neutral.