J.P. Morgan GEMS FTM 10 Jun 26 China Home Appliance; WuXi AppTec; Indian CRDMOs; Traxion; Brazil Beef; Saudi Car Rentals and More

Research evidence excerpt

J.P. Morgan GEMS FTM 10 Jun 26 China Home Appliance; WuXi AppTec; Indian CRDMOs; Traxion; Brazil Beef; Saudi Car Rentals and More

ayer of uncertainty around earnings momentum, pointing to limited near-term triggers for a

valuation re-rating. On the positive side, we view favorably the ongoing reorganization within the Mobility of Cargo segment, as

well as management's focus on free cash flow generation, which is driving a free cash flow yield of over 20% this year —

despite growth tracking below historical levels . We are revising our operating estimates down by low-to-mid single digits for the

coming years, while reducing our perpetuity growth rate by 0.5 p.p. and increasing our cost of equity by 0.5 p.p., leading to a

December 2026 Price Target of Mx$14.0, down from Mx$21.5 previously. Within our Mexico coverage, we favor the airports,

particularly GAP (OW) - more details here and on Figure 4.

Brazil Beef (Lucas Ferreira)

Exports by Company (May-26): Strong Momentum for All Three Companies

In this note, we break down Brazil’s beef export data in a way that captures exports by company, for each destination. May data

suggest JBS beef export volumes from Brazil were up 2.8% m/m and 22.2% y/y. Minerva also saw positive export

trends, with volumes growing 15.0% m/m and 27.3% y/y. For MBRF, volumes declined 9.2% m/m but still increased

56.1% y/y.

| Saudi Car Rentals (Taher Safieddine, CFA), Saudi Arabia

Bumpy road ahead; D/g Budget to N and Lumi to UW... Budget preferred pick over the medium term

We adopt a more cautious stance on the Saudi car rental space, downgrading Budget Saudi to Neutral (from OW) with a Dec-

27 PT of SAR 40/share (from SAR 67.5), and Lumi to Underweight (from N) with a Dec-27 PT of SAR 34/share (from SAR 71),