Mid-Year Prospects

Research evidence excerpt

Mid-Year Prospects

Asia Pacific Equity Research

Australia First to Market 28 July 2026

Top Stories

Mid-Year Prospects (Richard Jones, CFA)

Austalian REITs

This report forms part of the J.P. Morgan Australia Mid-Year Prospects series as we take stock at the mid-point of 2026 and set

out our Top Pick and Least Preferred stock for the remainder of the year.

| ALS Limited (Don Carducci) (ALQ AU, OW)

Upgrade to OW: ** This is not a drill **

Despite investor caution around implied Minerals guidance during a brief pause from Middle East events, domestic testing

volumes have held up and activity/program intent has re-accelerated, with turnaround times continuing to lengthen and

supporting price growth. Our view is this exploration cycle will be more drawn out, however, based on recent feedback we

bridge FY27 with a more constructive earnings profile. We factor in ~21% organic Minerals growth through FY27 with

sequential margin improvement from operating leverage. Our FY27 Commodities Revenue/EBIT sits +1.6%/+4.9% above BBG

consensus (and group EBIT/NPAT +2.0%/3.5%). Upgrade ALQ to OW - PT A$26.10.

Bannerman Energy (Branko Skocic) (BMN AU, OW)

4Q26 result - FID on track for DecQ

Key takeaways from the JunQ26 result: (1) selldown to CNOL on track for completion during the SepQ - FID targeted

shortly thereafter (JPMe mid-FY27); (2) closing cash was weaker than JPMe (A$53m vs. A$62m), primarily reflecting higher

PPE/exploration expenditure; and (3) no major project updates were provided with bulk earthworks 92% complete, design

and procurement activities on track and long-term infrastructure agreements/upgrades progressing. We retain our

Overweight rating, and our Jun-27 PT falls ~2.6%, to A$3.80/sh, on higher medium-term capex.