JP Morgan initiates coverage on JOHNSON ELEC H with an "Overweight" rating and a target price of 67 yuan

JP Morgan released a report, initiating coverage on JOHNSON ELEC H (00179.HK) with a target price of HKD 67 and a "Buy" rating, while also giving Aito (600580.SH) a target price of RMB 43 and a "Neutral" rating. The bank indicated that AI data centers, humanoid robots, and electric vertical takeoff and landing aircraft are expected to become long-term growth engines and reshape the industry's profitability.

Firstly, in terms of AI data center cooling solutions, Aito has supplied EC fans and cold plates to domestic ultra-large enterprises, while JOHNSON ELEC H provides integrated cooling pumps to top global hyperscale companies. For humanoid robot actuators, JOHNSON ELEC H supplies linear/rotary actuators and integrated dexterous hands, while Aito provides rotary actuators and dexterous hands. The bank predicts a long-term market size of 5 billion units, implying significant potential for growth.

As for electric vertical takeoff and landing aircraft motors, the bank expects that by 2035, the domestic market size could reach an annual production of 5,000 units; Aito collaborates with Geely (00175.HK) under the brand Voolei, while JOHNSON ELEC H will have advantages in the market due to its automotive-grade technology accumulation