Zhejiang Supor - A: A reset in earnings and dividend; downgrade to Neutral

Research evidence excerpt

Zhejiang Supor - A: A reset in earnings and dividend; downgrade to Neutral

J P M O R G A N Asia Pacific Equity Research

28 July 2026

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Zhejiang Supor - A ▼Neutral

Previous: Overweight

A reset in earnings and dividend; downgrade to Neutral 002032.SZ, 002032 CH

Price (27 Jul 26):Rmb42.83

▼Price Target (Jun-27):Rmb45.00

Prior (Jun-27):Rmb55.00

We downgrade Supor to Neutral as we are less confident in its ability to cushion Co-Head of Asia Pacific Consumer

cost inflation via captive OEM export demand. Supor’s preliminary 2Q results (our Research and Head of Asia Gaming/

first take) came as a disappointment, and the analyst briefing gave us little Leisure Research

confidence in the company’s near-term earnings recovery. After the revision, our DS Kim AC

FY26-27E EPS suggests 6-9% downside to consensus; the bigger risk, in our view, (852) 2800-8597

is dividend disappointment, where we see 20% downside to Street DPS ds.kim@jpmorgan.com

expectations - our FY26E DPS is Rmb2.01 or 4.7% yield, vs. consensus at Yibo Wu

Rmb2.51 or 5.8%. We cut our target multiple to 16x, placing it near 1 STD below (852) 2800-8559

yibo.wu@jpmorgan.com

historical average (old: 19x, in line with historical average), producing a Jun-27 J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

price target of Rmb45 that only suggests 5% potential upside. Downgrade to Morgan Broking (Hong Kong) Limited

Neutral.

• Downside to 2H revenue expectations. Revenue turned to negative 3% YoY Key Changes (FYE Dec)