APAC INITIATIONS: APAC Coverage Initiations presents all the companies on which J.P. Morgan has initiated equity research coverage over the past month across our analyst teams in Asia-ex Japan, Australia, and Japan.

Research evidence excerpt

APAC INITIATIONS: APAC Coverage Initiations presents all the companies on which J.P. Morgan has initiated equity research coverage over the past month across our analyst teams in Asia-ex Japan, Australia, and Japan.

d CSSC at OW; assume

coverage of YZJ at N

We recommend selectively increasing exposure to China’s shipbuilding sector through Guangdong Songfa Ceramics

(“Songfa”; TP: Rmb210) and China CSSC Holdings (“CSSC”; TP: Rmb45). We initiate coverage on both at Overweight. We

also assume coverage of Yangzijiang Shipbuilding (“YZJ”; TP: S$3.4) at Neutral. We believe the market is underestimating

the sector’s long-term earnings power, because: 1) existing orderbooks provide multi-year earnings visibility, with Chinese

shipyards filling 2029-30 delivery slots; 2) industry fundamentals remain tighter than previous cycles, with scheduled deliveries

expected to increase c.37% during 2025-27 against only c.9% global dock capacity growth during 2025-29; 3) signing

downpayments have increased from around 10% historically to 15-40% today, highlighting a persistent seller’s market; and, 4)

demand is rotating across vessel classes while IMO delays defer rather than destroy replacement demand. We prefer Songfa

> CSSC > YZJ, reflecting the number of incremental earnings drivers rather than the current franchise quality.

Hyundai Department Store (DS Kim/Benjamin Kim) (069960 KS, OW, PT W220,000), South Korea - 13 July

Korean Department Stores: Getting wealthier faster than they can spend; initiate on Shinsegae/HDS

at OW, Lotte at N

Department store stocks have more than doubled in a year. Same-store sales have gone from zero to ~25% growth in a little

over a year. The cause is the region’s least-kept secret — a KOSPI up 3x from its 2025 low, leaving households much wealthier