J.P. Morgan GEMS FTM 9 Jun 26 KEPCO; Brazilian Homebuilders; Brazil Toll Roads; MENA Equities and More

Research evidence excerpt

J.P. Morgan GEMS FTM 9 Jun 26 KEPCO; Brazilian Homebuilders; Brazil Toll Roads; MENA Equities and More

Overweight — more details here — and see superior upside potential along with a more attractive

valuation (15.2% real IRR), we acknowledge its higher risk profile, driven by greater leverage and a more significant CapEx

balance as a percentage of market cap, which supports our relative preference for MOTV. We take this opportunity to update

our estimates following 1Q26 results and to incorporate the Rotas Gerais project into our Ecorodovias model, resulting in a 9%

upward revision to our December 2026 Price Target, currently set at R$12.50. Regarding Motiva, we are incorporating the

divestment of the airport division — removing it from our estimates and reflecting the expected cash proceeds — given the

limited managerial disclosure and the anticipated near-term conclusion of the sale process. We are making only minor

adjustments to the highway and mobility estimates, and as a result, we are maintaining our December 2026 Price Target of R

$19.0 .

MENA Equities (Elena Jouronova, CFA/David Aserkoff, CFA/Taher Safieddine, CFA/Mehmet Sevim/Alex Comer/

Anna Antonova, CFA/Karin So/Matthew Lofting, CFA), Saudi Arabia, United Arab Emirates, Oman, Qatar,

Kazakhstan, Kuwait

Positioning amidst persisting geopolitical uncertainty and emerging opportunities

Revisiting our MENA coverage universe given the backdrop of the ongoing closure of the Straits of Hormuz and the

uncertain ceasefire. The broad conclusion is that the Saudi economic model is far less impacted than that of the UAE

even if the ongoing conflict makes it hard to forecast when we return to the new normal. Overall, we believe : (1) Saudi looks

better positioned vs.