J.P.Morgan Asia Pacific Equity Research: ASEAN FIRST TO MARKET

Research evidence excerpt

J.P.Morgan Asia Pacific Equity Research: ASEAN FIRST TO MARKET

Asia Pacific Equity Research

ASEAN First to Market 17 June 2026

Top Stories

| CW | Mitra Keluarga Karyasehat (Benny Kurniawan, CFA) (MIKA IJ, OW, PT Rp2,200), Indonesia

A best-in-class hospital franchise at a discount; upgrade to OW and place on Positive Catalyst

Watch

We upgrade MIKA to OW (from N) with an unchanged Jun-27 PT of Rp2,200. MIKA has trailed ASEAN hospital peers by 20-

50% (in USD) over the past three months, mainly due to the broader repricing of Indonesia equities’ risk premium (see: d/g to

N) and passive flows pressure from MSCI exclusion. We believe the risk/reward is turning attractive. MIKA is now one of the

cheapest ASEAN hospitals, trading at a 7.4x 2027E EV/EBITDA vs. ASEAN peers’ average of ~14x. In contrast, fundamentals

continue to be robust: We expect MIKA to deliver a 2025-27 EBITDA CAGR of 13% vs. peers’ average of 10% and a 2026E

ROE of 20% vs. peers’ average of 13% (see Table 1 Indonesia&ASEANhospitals:Compstable). We anticipate strong 2Q26 results that could serve as a near-term

catalyst for the stock. Additionally, the recently approved IDR1tn (~5% of mcap) buyback program could provide valuation

support, in our view. Hence, we also place the stock on Positive Catalyst Watch.

City Developments (Mervin Song, CFA) (CIT SP, OW, PT S$10.45), Singapore

Does the recent land bid signal greater family support?

Since the appointment of Mr Kwek Leng Peck as Vice Chairman (link), CIT has rallied 10.1% versus the STI’s 1.6% gain,

reflecting what we view as a game-changing development. Mr Kwek Leng Peck’s return signals strong Kwek family support for

CEO Mr Sherman Kwek and management’s plans to execute CIT’s strategic review while improving operating performance and

capital allocation.