J.P.Morgan Asia Pacific Equity Research: AUSTRALIA FIRST TO MARKET

Research evidence excerpt

Asia Pacific Equity Research

Australia First to Market

08 August 2026

Top Stories

ResMed Inc (Chris Cooper, ACA CFA) (RMD AU, OW)

Robust operating performance masked by inflationary pressures; pricing power and share buyback

support 2% EPS upgrades in FY27E; reiterate OW

For the first time, RMD has provided FY revenue and EPS guidance, encouraging more focus on headline performance rather

than specific P&L levers. In good times this will create opportunity to drive a more traditional ‘beat and raise’ story, but offers

fewer places to hide if and when conditions turn. For now, RMD is firmly in the former camp, delivering another solid operating

performance in 4Q26, with US sleep devices/masks tracking well (+8%/+10%) and the ex-US markets beating cons once more

(+12%/+13%). Notably, new FY27 guidance for revenue +5-7% implies +3% upgrades to the core business (consensus was at

+4.8% prior to today and, as discussed in our preview, some corners of consensus had not reflected: i) MatrixCare divestiture

(FY26 revenue/EBIT $220m/$58m) ; ii) Astral headwinds (FY26 revenue $75m). Overall, we post 1% upgrades to our revenue

forecasts through FY27-29e.

BHP (Lyndon Fagan) (BHP AU, OW)

FY26 result preview: FY27 cost guidance, DPS and copper growth projects in focus

BHP reports financial results on Tuesday, 11 August. Key points: 1) We forecast underlying EBITDA of $33.3bn, 3% higher than

company published consensus on the back of a higher Copper division result (largely on revenue). 2) Our NPAT is 6% ahead of

the street, ND has been guided to $9bn, while our FY26 dividend is US$1.72ps, well ahead of consemsus at $1.56ps (we

assume a 70% final DPS payout at US$0.99ps, taking the full-year payout to 65%). 3) In terms of new information, BHP will

provide unit cost guidance, where there are some market fears the iron ore division will see signficant cost inflation as per FMG

(this is already factored into our baseline forecasts, as it was for FMG, but consensus was too low for FMG at the time). The

presentation will be led by new CEO Brandon Craig for the first time. We believe the message will remain consistent, i.e. a

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