European Capital Goods "Elevators & Escalators - Key takes from a deep ..."

Research evidence excerpt

European Capital Goods "Elevators & Escalators - Key takes from a deep ..."

Global Research

18 June 2026ab

European Capital Goods Equities

Europe including UKElevators & Escalators - Key takes from a deep

dive with our China Property team Industrial

Andre Kukhnin

Analyst

andre.kukhnin@ubs.com

Bottom line +44-20-7567 2162

We recently hosted John Lam, Head of UBS Asia Property research for a discussion on his Jingyi Zheng

recent upgrade of the sector (link) and broader implications relevant for European Cap Analyst

Goods universe. Click here for John's recent feedback from Shenzhen property field trip. jingyi.zheng@ubs.com

We learnt that Tier 1 cities in China are showing signs of stabilization. Housing starts +44-20-7568 3962

reman weak but the rate of decline is slowing. Premiumisation and urban renewal may Dini Magoon

be more important than a broad volume recovery. Stance: In terms of stock implications, Analyst

China new construction now accounts for c5% of KONE operating profit and c3% for dini.magoon@ubs.com

Schindler (UBSe) but remains important for sentiment. We believe the outlook for +44-20-7567 4037

further c10% E&E market (units, orders) decline is well-understood but the market is Hemal Bhundia, CFA

looking for stabilisation in 2027. We would view any boost to replacement demand or to Analyst

pricing thanks to premiumisation as incremental positives. We rate both Kone and hemal.bhundia@ubs.com

Schindler Buy and prefer Kone here given additional recent price dislocation over the +44-20-7901 6515

TKE deal that we strongly disagree with. Ed Hussey

Key takeaways edward.hussey@ubs.com

Three reasons for turning more bullish on the property sector (link): 1/ +44-20-7568 3946

Affordability/lending supply, 2/ AI supply chain profits, 3/ Rental prices Bruno Gjani