2 Under-owned Ideas; Sany Hevy, CRRC/ZZCRRC, Earnings Recap & Previews, Earthquake Impact Analysis for JP Auto/Tech

研报英文原文证据摘录

2 Under-owned Ideas; Sany Hevy, CRRC/ZZCRRC, Earnings Recap & Previews, Earthquake Impact Analysis for JP Auto/Tech

Specialist Sales

APAC Specialist Sales J P M O R G A N

29 July 2026

2 Under-owned Ideas; Sany Hevy, CRRC/ZZCRRC, Earnings Recap &

Previews, Earthquake Impact Analysis for JP Auto/Tech

Joann Kim

+852 2800 8016

joann.kim@jpmorgan.com

The The S&P 500 closed up 0.2% on elevated volumes (+15% vs 5dma), with the session marked by continued broadening out

and momentum pain as crowded AI/momentum trades saw sharp de-grossing (semis -6%, AI/momentum baskets -6% to -10%).

Defensive sectors and value pockets outperformed, with staples, insurance, healthcare, and US importers leading gains, while

cyclicals and energy lagged. Software rose 2.5%, offsetting weakness in semis, and EU exposure also screened as a key winner.

The tape reflected a clear rotation away from AI/momentum into defensives, with VIX steady at 18.3. JPM APAC pad this

morning is largely net neutral on lighter volume. We are seeing 2-way activity in AI complex incremental buying in KR memory

while selling JP/TW names. Some hints of the broadening out of trade as we see on going buyers of KR value up.

From research, Karen Li highlights two interesting ideas to revisit amid AI/Tech-driven volatility: Sany Heavy and

CRRC/ZZCRRC, both trading close to their trough multiples with improving core business and strong FCF/cash balances

supporting attractive dividend yields (4–5% in FY27E). Sany’s high-margin exports continue to deliver strong growth, supporting

over 30% recurring profit growth (net profit growth high single digit due to F/X translation loss), with electrification and mining

exposure also growing robustly. CRRC/ZZCRRC’s core business is set to improve. For CRRC, China government rail