JPMorgan says the decline in Longyuan’s third-quarter net profit attributable to shareholders exceeded its expectations. Wind power generation is stabilizing, but electricity prices and costs remain under pressure. Improved subsidy collection and expectations of a recovery in utilization hours in 2027 support its decision to maintain an Overweight rating.
JPMorgan says lower raw material costs for sulfate-process titanium dioxide supported a recovery in operating profit per tonne. However, the company’s third-quarter revenue and net profit both fell from the previous quarter, while downstream demand and export tariffs remain constraints.
The company’s third-quarter gross margin beat J.P. Morgan’s and market expectations, but revenue and net profit fell short of market consensus. J.P. Morgan expects TPU-related shipments to drive further revenue growth in the fourth quarter, while new projects put short-term pressure on gross margin.
Third-quarter net profit attributable to shareholders fell 47% quarter on quarter; copper concentrate processing charges continued to weaken, while prices for the sulfuric acid by-product also retreated from highs. JPMorgan expects profit to decline further in the fourth quarter and has lowered its earnings forecasts for the next three years.
JPMorgan believes expanded indications and dosing regimens will support continued growth for Eylea HD, although declines in the original Eylea will offset some of that growth. Whether competition from new drugs can change the landscape also depends on payer restrictions and clinical advantages.
Both companies’ third-quarter capital spending fell short of expectations, but their full-year plans still point to higher fourth-quarter spending. JPMorgan is optimistic about the server supply chain while wary of pressure from PC demand and inventories.
Tencent believes the key to enterprise AI adoption is connecting workflows, internal knowledge and authorization systems. WorkBuddy is deeply integrated with WeCom and connected to business travel services; Citi maintains its Buy rating on Tencent with a target price of HK$755.
Azure grew 48% at constant currency in the first quarter of fiscal 2027, and its second-quarter guidance also exceeded market expectations. Bank of America raised its earnings forecast and price target while expecting capital expenditure to accelerate in the second half and full-year free cash flow to decline.
Higher aftermarket parts prices and a return to profitability in the automotive parts business supported year-on-year operating profit growth of 17% in the third quarter; however, lower foreign exchange gains and equity-method earnings brought net profit down 36% year on year.
Palantir’s second-quarter revenue rose 93% year over year, with growth accelerating in both its commercial and government businesses. JPMorgan initiated coverage with an Overweight rating, saying the platform’s integration into customers’ operations could support growth and cash flow, though cloud hosting costs, customer lock-in concerns and competition from model providers will also influence its growth trajectory.
Revenue and earnings per share for the quarter ended in September exceeded both company guidance and market expectations. Management said long-term agreements cover about half of the bits to be shipped in fiscal 2027, but weak PC and low-end smartphone demand, DRAM costs and industry price competition remain constraints.
Morgan Stanley expects TPU v8 to contribute 2.5 billion US dollars in revenue in the fourth quarter of 2026, while a second customer opens up new room for growth in 2028; excluding AI chips, however, traditional businesses are expected to decline quarter on quarter.
Oil consumption weakened broadly across major economies in 2026, even as economic activity did not contract in tandem. JPMorgan is inclined to expect demand to rebound as the energy shock fades, while cautioning that changes in the composition of growth and energy use could lower the long-term demand trajectory.
Morgan Stanley expects the AI chip market to reach 809 billion US dollars in 2027, with demand for CoWoS packaging nearly doubling; however, slower growth in cloud capital expenditure, rising chip costs and supply bottlenecks will affect the realization of that growth.
Based on guidance from Alphabet, Microsoft and Meta, JPMorgan estimates that the three companies’ combined capital spending in the fourth quarter of 2026 will be approximately 174 billion dollars, up approximately 87 billion dollars year over year. Delays in third-party capacity delivery have affected Microsoft’s spending in the quarter, but all three companies have signaled continued investment.
A ramp-up in the gas turbine business drove Yingliu’s third-quarter revenue up 51% year over year, but gross margin fell during capacity expansion and operating cash flow was also weaker than a year earlier. JPMorgan believes tight industry supply and demand and supplier diversification will support future growth.
Gas power equipment drove third-quarter orders and profit above expectations, and transmission equipment margins rose, but quarterly electrification orders declined against a high comparison base. JPMorgan believes the Trench acquisition also points to long-term support for high-voltage grid demand.
As heavy-duty truck and LNG truck sales weakened, Weichai Power’s high-margin power and energy businesses lifted its gross margin, and recurring profit exceeded JPMorgan’s expectations; foreign exchange losses and advance payments to suppliers weighed on net profit and operating cash flow.
In the third quarter of 2026, China Vanke’s core net loss narrowed by 800 million yuan from the previous quarter, but operating and free cash flow turned negative again, and its cash-to-short-term-debt coverage ratio fell further. JPMorgan considers a comprehensive debt restructuring the more likely next step.
Management expects data-center cooling revenue to grow approximately 50% year over year in 2026; refrigeration margins have improved, but the automotive business continues to face pricing, currency and new-factory ramp-up pressures.
