J.P. Morgan China/HK FTM 9 Jul 26: Alibaba Group (BABA US & 9988 HK); China Basic Materials; Hong Kong Equity Strategy; Wanhua Chemical - A; Qingdao TGOOD Electric; China International Capital Corporation (3908). Wed Jul 08 2026

Research evidence excerpt

J.P. Morgan China/HK FTM 9 Jul 26: Alibaba Group (BABA US & 9988 HK); China Basic Materials; Hong Kong Equity Strategy; Wanhua Chemical - A; Qingdao TGOOD Electric; China International Capital Corporation (3908). Wed Jul 08 2026

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importantly, we attribute a large part of the 2Q beat to Wanhua's newly started ethane cracker, which, similar

to peers Satellite Chem and Petrochina, likely delivered very strong 2Q NP. Post earnings, we raise our

FY26-27 NP estimates for Wanhua by 21%/10% to Rmb19bn and roll our PT to Jun-27 at Rmb90/shr.

Upgrade to OW as current valuation appears attractive with the stock trading at 12x 1-yr forward P/E vs.

FY25-27E EPS CAGR of 23%.

Qingdao TGOOD Electric (300001.SZ, OW – Rmb32.93), China (Stephen Tsui, CFA / Rebecca Wen)

Key takeaways from the management call; lifting PT on strong outlook for DC and overseas power

orders

Qingdao TGOOD Electric has outperformed the index by >20% YTD (TGOOD +28% vs. SZCOMP +5%) as

investors increasingly recognize its rising overseas exposure in prefabricated substations and the growth

potential of its data-center offering. The recent management call reinforces our positive view: China data-

center orders YTD have already exceeded the FY25 level and management has guided to a doubling of

China DC orders this year; Middle East prefabricated substation orders could more than double this year

with management guiding to ~50% market share, alongside rising orders from Europe and Australia; and

the collaboration with Eaton (ETN US, NR) could help TGOOD expand further overseas, while its newly

developed high-voltage AC-to-low-voltage DC solutions have attracted inquiries from data-center customers

across regions, including the US. At <20x 1-year forward P/E, we think the valuation remains attractive, and