CH Battery/Material July Update, KR Defense: LIG D&A on +Ve Catalyst Watch, KR Auto Monthly

研报英文原文证据摘录

CH Battery/Material July Update, KR Defense: LIG D&A on +Ve Catalyst Watch, KR Auto Monthly

Specialist Sales

APAC Specialist Sales J P M O R G A N

03 July 2026

CH Battery/Material July Update, KR Defense: LIG D&A on +Ve Catalyst

Watch, KR Auto Monthly

Joann Kim

+852 2800 8016

joann.kim@jpmorgan.com

SPX closed flat while SPW outperformed (+0.7%) and NDX (–1.6%) and SOX (–5.4%) lagged, as cyclicals gained steam after

US Payrolls data eased Fed hike fears without signaling economic weakness. Cyclicals outperformed, with Consumer Disc

+0.8%, Financials +1.5%, Homebuilders +0.8%, Private Credit +2.0%, Energy +0.6%, and Metals +1.8%, and SPW has now

outperformed SPX by +6% since mid-May. Semis continued to correct (SOX –5.4%, now –11% in two sessions), driven by

META headlines raising AI capex concerns and further compounded by Memory weakness in Asia. Our Asia pad starting the day

as better to sell on decent volume; active 2-ways in KR memory & Tech profit take across Asia and seeing rotation into KR

defense/ Japan Airlines.

Simon Han flags Korea defense stocks as well positioned heading into 2Q26 earnings season, with focus shifting to order timing,

margin/mix, and delivery cadence. LIG D&A, Hanwha Aerospace, and Hyundai Rotem are best placed for earnings upgrades:

LIG D&A is set for a ~30% OP beat on strong exports and M-SAM II deliveries, with further catalysts beyond earnings including

Canada CPSP, US howitzer bid, and the NATO summit. Simon places LIG D&A on positive catalyst watch.

• CH Battery & Materials: CATL keeps charging ahead of peers; July battery production remains solid - Rebecca Wen

• KR Defense: Placing LIG D&A on Positive Catalyst Watch ahead of 2Q26 earnings; broad-based beat expected on strong

execution and favorable FX - Simon Han