*J.P. Morgan Asia FTM 16 Jul 26: CN 2Q growth weakened despite activity stabilization; Placing TTI on +ve Catalyst Watch; ASEAN Banks 2Q preview; CN AI Ecosystem: Deleveraging as healthy reset; ID Telco 2Q preview. Wed Jul 15 2026

Research evidence excerpt

*J.P. Morgan Asia FTM 16 Jul 26: CN 2Q growth weakened despite activity stabilization; Placing TTI on +ve Catalyst Watch; ASEAN Banks 2Q preview; CN AI Ecosystem: Deleveraging as healthy reset; ID Telco 2Q preview. Wed Jul 15 2026

Asia Pacific Equity Research

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Asia First to Market 16 July 2026

Top Stories

China: Growth weakened despite activity stabilization, China (Feng Zhu)

Production steadies, domestic demand drags

2Q GDP slowed to 4.3%oya; sequential momentum weakened.

June IP stabilized, led by equipment and high-tech manufacturing.

CW | Techtronic Industries (0669) (0669.HK, OW – HK$128.40), China (Karen Li, CFA)

Placing on Positive Catalyst Watch: Data center re-rating cycle in early innings; addressing investor

concerns

We are placing TTI on Positive Catalyst Watch (PCW), as we think the market’s “data center re-rating cycle”

is still in its early stage with catalysts building into the 1H26 earnings briefing due August 4. Our catalyst

date is 31 August – see Table 1 overleaf for more details. While the market remains concerned about a high

comparison base and elevated operational costs for the 1H26 print, we view these headwinds as

manageable, supported by staged price hikes implemented in 2H25 and ongoing mix shifts toward higher-

margin segments. We believe there is a decent chance for margin outperformance, and at minimum do not

expect a miss on the headline numbers. More importantly, investors will have the opportunity to test whether