External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

Equity Bottom-Up

<ul><li>In 2025, revenue from Korean Air’s aerospace division totaled W779.6bn.</li><li>Considering that this figure excludes the MRO business, the division is demonstrating exceptionally strong growth.</li><li>The aerospace order backlog stood at W3.9tr at end-3Q25. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In 2025, revenue from Korean Air’s aerospace division totaled W779.6bn.Considering that this figure excludes the MRO business, the division is demonstrating exceptionally strong growth.The aerospace order backlog stood at W3.9tr at end-3Q25. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Korean Air (003490 KS/Buy)Defense to Drive Long-Term Growth in Aerospace Business

<ul><li>For 4Q25, Korean Air reported standalone revenue of W4.55tr (+13% YoY).</li><li>Passenger revenue rose 9.1% YoY, supported by a 2.2% YoY increase in international traffic and a 6.6% YoY rise in yields.</li><li>Strong performances were seen on routes to China, Japan and Europe, driven by long holiday periods and the visa-free travel policy for China. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

For 4Q25, Korean Air reported standalone revenue of W4.55tr (+13% YoY).Passenger revenue rose 9.1% YoY, supported by a 2.2% YoY increase in international traffic and a 6.6% YoY rise in yields.Strong performances were seen on routes to China, Japan and Europe, driven by long holiday periods and the visa-free travel policy for China. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Korean Air (003490 KS/Buy)Resilient Earnings Thanks to Higher Yields

<ul><li>For 3Q25, Korean Air reported standalone revenue of W4.01tr (-5.5% YoY).</li><li>Passenger revenue fell 7.5% YoY to W2.02tr due to a combination of weaker demand (hurt by tighter US entry restrictions) and supply competition, which led to a 2.4% YoY decline in yield.</li><li>The shift in the timing of the Chuseok holiday period (October in 2025 vs. September in 2024) also created an unfavorable base, weighing on results. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

For 3Q25, Korean Air reported standalone revenue of W4.01tr (-5.5% YoY).Passenger revenue fell 7.5% YoY to W2.02tr due to a combination of weaker demand (hurt by tighter US entry restrictions) and supply competition, which led to a 2.4% YoY decline in yield.The shift in the timing of the Chuseok holiday period (October in 2025 vs. September in 2024) also created an unfavorable base, weighing on results. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Korean Air (003490 KS/Buy)Fixed Cost Pressures Increase Amid Lower Yields

Thematic (Sector/Industry)

<ul><li>Momentum: Slow but steady improvement in fundamentals could provide the basis for a valuation recovery.</li><li>Earnings: It appears increasingly likely that 2Q26 will mark an earnings trough, with a rebound likely thereafter.</li><li>In 2H26, the market’s focus may begin to shift beyond the recent series of macro uncertainties (from tariffs and port fees in 2025 to the Middle East conflict in 2026). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Momentum: Slow but steady improvement in fundamentals could provide the basis for a valuation recovery.Earnings: It appears increasingly likely that 2Q26 will mark an earnings trough, with a rebound likely thereafter.In 2H26, the market’s focus may begin to shift beyond the recent series of macro uncertainties (from tariffs and port fees in 2025 to the Middle East conflict in 2026). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

[2H26 Outlook] TransportationAdaptability holds the key to market leadership

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Asian Alpha Hedge Portfolio performance in 1Q26 was +17.83% versus its benchmark performance of +1.79% for an outperformance of 16.04%.</li>
<li>Over the last year, AAHP's Sharpe ratio is 4.39 with a mean excess annualized return of 69%.  The portfolio has a gross and net exposure of 132% and +30%, respectively.</li>
<li>The war has changed outlooks for economies and markets in the region.  Accordingly, we reduced risk in the portfolio and adjusted our long/short exposures to reflect this new reality.</li>
</ul>


The Asian Alpha Hedge Portfolio performance in 1Q26 was +17.83% versus its benchmark performance of +1.79% for an outperformance of 16.04%.
Over the last year, AAHP's Sharpe ratio is 4.39 with a mean excess annualized return of 69%.  The portfolio has a gross and net exposure of 132% and +30%, respectively.
The war has changed outlooks for economies and markets in the region.  Accordingly, we reduced risk in the portfolio and adjusted our long/short exposures to reflect this new reality.


Asian Alpha Hedge Portfolio (March, 2026)

South Korea

Korean Air Lines Co., Ltd. operates air transportation services.  The Company's services include passenger and cargo transportation, aircraft maintenance, and air catering.  Korean Air Lines provides domestic and international airline services.

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Korean Air Lines (003490 KS)

Korean Air (003490 KS/Buy)Defense to Drive Long-Term Growth in Aerospace Business

In 2025, revenue from Korean Air’s aerospace division totaled W779.6bn. Considering that this figure excludes the MRO business...

Mirae Asset Securities

Korean Air (003490 KS/Buy)Resilient Earnings Thanks to Higher Yields

For 4Q25, Korean Air reported standalone revenue of W4.55tr (+13% YoY). Passenger revenue rose 9.1% YoY, supported by a 2.2% YoY increase in...

Mirae Asset Securities

Korean Air (003490 KS/Buy)Fixed Cost Pressures Increase Amid Lower Yields

Passenger revenue fell 7.5% YoY to W2.02tr due to a combination of weaker demand (hurt by tighter US entry restrictions) and supply competition,...

Mirae Asset Securities

[2H26 Outlook] TransportationAdaptability holds the key to market leadership

In 2H26, the market’s focus may begin to shift beyond the recent series of macro uncertainties (from tariffs and port fees in 2025 to the Middle...

Mirae Asset Securities

Asian Alpha Hedge Portfolio (March, 2026)

While we do not believe that the Iran conflict is close to a resolution, we believe that the U.S. side needs to reach one, and that will eventually...

David Mudd

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