*J.P. Morgan Asia FTM 9 Jul 26: BABA 1Q preview: Start of +ve revisions; KR Banks momentum boost pre 2Q; KR Nuclear: Revisit order ests; CN Basic Materials 1H preview; HK sentiment drag in price; U/g Wanhua to OW. Wed Jul 08 2026

Research evidence excerpt

*J.P. Morgan Asia FTM 9 Jul 26: BABA 1Q preview: Start of +ve revisions; KR Banks momentum boost pre 2Q; KR Nuclear: Revisit order ests; CN Basic Materials 1H preview; HK sentiment drag in price; U/g Wanhua to OW. Wed Jul 08 2026

Aditya Srinath AC Asia Pacific Equity Research

(65) 6882-7138 09 July 2026 J P M O R G A N

aditya.srinath@jpmorgan.com

reconstruction (W5.6tn). We are reshuffling our order estimates, pushing back our overseas nuclear project

assumptions by 1-2 years due to geopolitical tensions, trimming 2026-28E orderbook estimates and

lowering price targets. 2Q earnings should be broadly in-line with consensus, with limited downside risk as

problematic overseas projects near completion. We maintain a constructive sector view on all three names

with Overweight ratings, with Doosan as our top pick.

| China Basic Materials, China, Hong Kong (Avery Chan)

1H26 Earnings Preview: Value set-up improves as rate concerns ease

The MSCI China Materials Index has rebounded 2% MTD (vs MSCI China +2% ) as focus comes back to

earnings after a few months of macro factors diverting attention, such as supply-side geopolitical disruptions

and rate-hike concerns. We see opportunities in the results and expect copper, aluminum and lithium

companies to start issuing positive profit alerts. We also turn more positive on Ganfeng, and see

outperforming opportunities after the recent pullback due to the upcoming downstream restocking season

and most short-term negative catalysts having played out. Zijin Mining and Zijin Gold remain our top picks;

we think the concerns on Indonesia aluminum supply are overdone and reiterate our OW on Chalco and

China Hongqiao (valuation gap narrowing vs global peers). Our sector pecking order is Copper > Gold >

Aluminium > Lithium > Coal > Steel.