J.P. Morgan International FTM 11 Jun 26 PPC Group; UniCredit; Lundin Mining; Kuaishou Technology; India Consumer Staples; Largan Precision Co Ltd; Life Insurance Industry; Chilean Banks; LatAm Oil & Gas and More

Research evidence excerpt

J.P. Morgan International FTM 11 Jun 26 PPC Group; UniCredit; Lundin Mining; Kuaishou Technology; India Consumer Staples; Largan Precision Co Ltd; Life Insurance Industry; Chilean Banks; LatAm Oil & Gas and More

stake. Financially, a bump would only make sense if acceptance levels are already high

and if it allows the group to secure a stake of 60%+ as there is a cliff effect below 60% in terms of ROIC. Strategically, however,

we would agree that UCG should seek control with a stake as high as possible to remove some of the stock overhang. The

challenge is that Italian M&A is back in focus (see our factual note here) and gaining control of CBK consumes significant

capital. If UCG wants to bid for an Italian bank, unless the group has a very high stake in CBK (closer to 100% than 60%) and

CET1 proforma of CBK is high, the group will only be able to offer an all-share-swap deal with a limited cash component. Most

of the Italian bank targets also have significant shareholders with ambitions of their own. Whilst UCG’s M&A situation remains

complex, we continue to find valuation attractive at 7.7x PE, 1.7x NAV for RoNAV 22.6% in 2028e, with shares already

discounting the uncertainty and also further upside from the standalone equity story.

Lundin Mining (Patrick Jones), Canada, Sweden, South Africa, United Kingdom, Australia

Compelling long-term growth, but approaching Vicuña FID, copper headwinds, & 2025 re-rating

skew risks to the downside; stay Underweight

Lundin Mining will hold its Capital Markets Day next Wednesday, 17 June, which will showcase the group’s significant long-term

growth strategy in Argentina and Chile. Although LUN stands out for its strong operational performance and its recent Mar’26