J.P. Morgan ASEAN FTM 22 May 26 KEP: Asymmetric risk/reward, u/g to OW; Thai Consumer: Solid 1Q prints; Strategy: Strength in diversification; ST: FY27 guidance underwhelming; KPJ: Patient traffic continues

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J.P. Morgan ASEAN FTM 22 May 26 KEP: Asymmetric risk/reward, u/g to OW; Thai Consumer: Solid 1Q prints; Strategy: Strength in diversification; ST: FY27 guidance underwhelming; KPJ: Patient traffic continues

Asia Pacific Equity Research

ASEAN First to Market 22 May 2026

Top Stories

| Keppel Ltd (Mervin Song, CFA) (KEP SP, OW, PT S$12.05), Singapore

Asymmetric risk reward - upgrade to OW

We upgrade KEP to OW with a new S$12.05 PT. We had been concerned about the slower pace of asset divestments and

FUM growth due to the Middle East conflict, and the risk of revised terms or failure to secure regulatory approval for the M1

disposal. These risks have largely crystalised, with the failed M1 sale ( link ) and KEP returning -10.4% (including dividends)

since March ( link ), lagging the STI’s 4.6% rise. We turn more positive as expectations and positioning have reset lower, with

relative valuations and share price performance to peers having normalized. In our view, KEP’s pivot towards becoming a

global asset manager remains on track and earnings should benefit from the ramp-up at the new Sakra plant. We see the risk-

reward as attractive, with DPS of ~42 Scts implying a ~4% yield, which should provide downside support.

| Thai Consumer (Kae Pornpunnarath, CFA), Thailand

Solid 1Q26 prints; wider 2H26 risk band

Thai Consumer’s 15% YTD underperformance vs. the SET presents a selective buying opportunity following broad-based

earnings beats in 1Q26. Our view is anchored in three key drivers. First, we expect margins to have peaked in 1Q26, with

downside risks into 2H26 as energy/input cost pressures emerge. Second, the upcoming co-payment stimulus (~7% of basic

consumption in 2H26e) will expand the wallet but distort channel dynamics - favoring F&B while weighing on modern grocery