*J.P. Morgan Asia FTM 10 Jun 26 CN Home Appliance: White goods or white space?; SG Banks: D/g DBS to N; WuXi AppTec: 1260H hits sentiment, India CRDMOs to benefit; D/g WLCON to UW; IATA sees structural divergence

Research evidence excerpt

*J.P. Morgan Asia FTM 10 Jun 26 CN Home Appliance: White goods or white space?; SG Banks: D/g DBS to N; WuXi AppTec: 1260H hits sentiment, India CRDMOs to benefit; D/g WLCON to UW; IATA sees structural divergence

hough

direct disruption may be modest given the Biosecure Act’s scope and grandfathering provisions. For Indian

CRDMOs, the key implication is that this could further support customer efforts to diversify beyond China -

this is especially relevant given India's still-small ~3.8% share of the global CRDMO market, where even

modest share gains could be meaningful for leading domestic players. Key factors to monitor are new

RFQs, lateral wins, second-source qualifications, late-stage project transfers, capacity reservations, and

revenue conversion. We remain positive on capability-led beneficiaries, particularly Divi’s and Anthem

Biosciences.

| Wilcon Depot (WLCON.PS, UW – Php5.52), Philippines (Jeanette Yutan)

Downgrade cycle not yet priced in, drives non-consensus UW

We downgrade WLCN from Neutral to a non-consensus UW and introduce a Street-low June -27 PT of

Php5.00. The stock is inexpensively priced at a 12M forward PE of 9.2x and 0.9x BV after having

underperformed the PSEi by 18% YTD. However, we believe that the downward EPS revision cycle is not

yet fully reflected and will continue to cap the share price performance. We forecast a 10-13% downside to

consensus FY26E-FY27E earnings forecasts as the Street's EPS forecasts adjustment YTD is barely 3%.

We expect the earnings revision cycle to be driven by margin compression due to the confluence of intense

competition, a shift in demand to softer and lower-margin home improvement spending, and a sharp rise in

energy-related OPEX items.

Asia Aviation Insights, Hong Kong, Singapore, China (Karen Li, CFA)