*J.P. Morgan Asia FTM 25 May 26 A mixed Futu; new KTC OW – quality at great value; Strategy view from China Summit; LTM’s struggle for organic growth; Specialists for KPJ?; India Banks/HFCs’ mortgage views

研报英文原文证据摘录

*J.P. Morgan Asia FTM 25 May 26 A mixed Futu; new KTC OW – quality at great value; Strategy view from China Summit; LTM’s struggle for organic growth; Specialists for KPJ?; India Banks/HFCs’ mortgage views

road

consumption as funding for our key thematic positioning in AI and robotics. (1) Panel speakers and clients

saw vast room for AI to develop further. That said, global and regional investors we spoke with appeared to

have AI exposure mostly via US, Korea, Taiwan and Japan names at the moment, while China LLM models

growing their profitability down the road could act as a driver of additional fund flows into China AI tech

positions. (2) Second-order AI capex spillovers are broadening China’s industrial order tailwinds, supporting

our structural bullish stance on factory automation. (3) Offshore investors we spoke with were assessing

whether the green shoots in China’s property market will sustain amidst decelerating retail sales growth. We

believe that more tangible improvements in domestic consumption macro data and more EPS beats in the

consumer and internet space are pre-requisites to raise positions in these sectors, and stay selective in

high-end property developers focusing on Tier-1 CBD areas.

| LTM (LTM.NS, N – Rs4,007.80), India (Ankur Rudra, CFA)

Unusual acquisition that can distract management and signals struggling organic initiatives;

downgrade to N

LTM announced that it has issued an offer to acquire Randstad’s (RAND NA; covered at JPM by Jane

Sparrow) technology and consulting services business in Europe and Australia. Revenues of these entities

(€469m) have declined sharply in the past two years while we estimate the business operates at much lower

4-5% Ebitda margins, given its onshore-heavy nature, which should be materially margin-dilutive.