*J.P. Morgan Asia FTM 8 Jul 26: SEC: 2Q headline beat; u/g Mobis to OW, Mando to N; J&T: Init at OW; Machinery/HDT: Demand upcycle broadens; AI: Winner takes more; Insurance Summer Series; LGES: 2H recovery. Tue Jul 07 2026

研报英文原文证据摘录

*J.P. Morgan Asia FTM 8 Jul 26: SEC: 2Q headline beat; u/g Mobis to OW, Mando to N; J&T: Init at OW; Machinery/HDT: Demand upcycle broadens; AI: Winner takes more; Insurance Summer Series; LGES: 2H recovery. Tue Jul 07 2026

Aditya Srinath AC Asia Pacific Equity Research

(65) 6882-7138 08 July 2026 J P M O R G A N

aditya.srinath@jpmorgan.com

share price has underperformed, reflecting sector price wars in China, initial loss-making status, and

external shocks such as recent fuel price volatility. The market has also questioned the scalability of J&T’s

model outside China and the sustainability of margins in a maturing Southeast Asia, while New Markets

were seen as too early-stage to move the needle. However, the business has now pivoted to profitability, is

delivering industry-leading volume and margin growth, and is unlocking new synergies through its

partnership with SF Holdings. The stock has de-rated to c.10x forward P/E (Non-IFRS), despite a visible

inflection in earnings and a proven, exportable business model. We believe this disconnect is compelling:

J&T’s scalable platform, accelerating New Markets, and cost leadership are not reflected in the current

valuation, and a c.20% premium to sector average is justified by c.50% net profit CAGR over FY25-28E (vs.

sector 15–20%).

Machinery & HDT, China, Hong Kong (Karen Li, CFA)

June update: Demand upcycle broadens; AIDC, CAT/CMI, Ceres, and Kion read-throughs; 2Q26

preview

In this note we review June, 2Q, and 1H26 machinery and HDT market data, the latest AIDC onsite power

trends, and global read-throughs from Caterpillar, Cummins, Ceres, and Kion—all with direct implications for

our top picks—Weichai Power (the best performing stock in the sector), Sany Heavy and XCMG. June and