J.P. Morgan GEMS FTM 18 May 26 India Equity Strategy; China Equity Strategy; Trump-Xi summit: “Make it work and never mess it up”; Global Memory Market; Samsung Electronics; SK hynix and More

研报英文原文证据摘录

J.P. Morgan GEMS FTM 18 May 26 India Equity Strategy; China Equity Strategy; Trump-Xi summit: “Make it work and never mess it up”; Global Memory Market; Samsung Electronics; SK hynix and More

W3,000,000), South Korea

LTA paves path for new valuation framework: raising PT to W3M, maintain OW

SKH shares have surged 201% YTD (vs. memory peers : +255% and SOX: +70%) likely owing to greater market confidence in

2027E memory earnings and the elongated memory upcycle. Amidst ongoing LTA discussions with CSP customers, we believe

SKH is at a pivotal inflection point to drive structural changes to the traditional memory business model. Given our belief that

the memory S-D imbalance is unlikely to ease anytime soon, we expect both memory makers and CSPs to strike LTAs,

improving the quality of memory earnings and ultimately acting as a re-rating factor ( refer to our LTA deep dive report ). We

raise FY26-28E EPS esimates by 9-20% to reflect stronger pricing outlook (DRAM, NAND and HBM) and raise our Dec-26

price target to W3M based on 8x FY26/27E EPS. We expect LTA to pave the path for memory companies to be valued using a

new valuation framework.

| Brazilian Utilities (Arthur Pereira, CFA), Brazil

Risk: Neither too little, Nor too much

The recent selloff in Utilities stocks (-12% in past 30 days) has reshuffled risk premia in the sector and we now see fast-growing

quality names no longer with demanding valuations (Figure 7 ImpliedInternalRateofReturns(IRs)). In this scenario, we think investors should avoid either:

1) too-defensive: CPFE’s tight valuation despite lower expected yields looks unjustified, reason why we downgrade CPFE to

Neutral, and 2) too-risky: risk-taking on high uncertainty theses like SAPR is less likely as long as high-quality names trade at