J.P. Morgan ASEAN FTM 17 Jul 26 HKL: Kickstarting the earnings upcycle; BPI: PPoP grows well, but credit costs move up; Sing Hospitality REITs: Tourist arrivals fall again; PH: Remittances moderate in May

Research evidence excerpt

J.P. Morgan ASEAN FTM 17 Jul 26 HKL: Kickstarting the earnings upcycle; BPI: PPoP grows well, but credit costs move up; Sing Hospitality REITs: Tourist arrivals fall again; PH: Remittances moderate in May

Asia Pacific Equity Research

ASEAN First to Market 17 July 2026

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Hong Kong Property & Conglomerates (Karl Chan), Hong Kong, Singapore

Results preview: kickstarting the earnings upcycle

After a 2-3 year earnings downcycle, we believe the upcoming results (to be released from July to November; most are interim,

but some are annual results) will kickstart a multi-year earnings upcycle (we forecast a 9% Y/Y earnings growth and 2-3% Y/Y

DPS growth), driven by improving HK DP margins, partial stabilization in rental income & lowering financing costs. In the near

term, we expect the sector may continue to be heavily influenced by the interest rate narrative, which is rapidly shifting. In our

stock-picking, we prefer companies with (1) lower sensitivity to rates; (2) earnings revival over the next 2-3 years; (3) proactive

capital recycling; and (4) improvement in operating data of key sub-sector exposure (e.g. spot rent rebound in Central office;

spot rent stabilization in HK retail). Since the overhang of capital outflow control may not be totally removed any time soon, we

see higher certainty in landlords over developers in the near term. Top picks: Link REIT, HKL & Swire Prop among landlords;

SHKP among developers; CK Hutchison & Jardine Matheson among conglomerates.

Bank of the Philippine Islands (Daniel Andrew Tan, CFA/Harsh Wardhan Modi) (BPI PM, N, PT Php105.00),

Philippines

First Take: PPoP grows well, but credit costs move up; stay Neutral

Our First Take: BPI reported 2Q26 net income of Php15.9bn, down 3% y/y, down 6% q/q and 7% above JPMe. 1H earnings of