🎯 Strategy – Selective Overweight We maintain a Selective Overweight stance. While 2H2026E remains challenging amid higher interest rates and cost pressures, we expect a stronger 2027E as inflation eases and monetary policy turns supportive. 🌍 Geopolitics & Inflation Easing US–Iran tensions, lower oil prices and improving supply chains are expected to reduce imported inflation, paving the way for policy easing from 1H2027E. 📊 Earnings & Valuation • 2026E earnings: +4% (LKR 733bn) • 2027E earnings: +13% (LKR 833bn) • 2026E ASPI target: 25,250 (13.8% upside), based on forward 2027E earnings 🧭 Top Picks 🏦 Financials: COMB (N&X), HNB (N&X), COCR, HASU 🛒 Consumer: HHL, SUN, CIC, CIC(X), DIST 🏗️ Infrastructure: AEL, ACL, TKYO, TKYO(X) 🏭 HAYC, DIPD | ⚡ VLL (N&X) | 🚕 PKME | 💰 LLUB ⚠️ Key Risks: Geopolitical re-escalation | Persistent inflation | Higher-for-longer rates | Delayed earnings recovery