In "Major Banks," China International Capital Corporation (CICC) lowered the target price for Johnson Electric Holdings to 39.85 yuan, with valuation under pressure due to limited disclosure of new business

According to a research report by CICC, Johnson Electric (00179.HK) saw its revenue for the first three quarters of the fiscal year ending December 2026 decline from USD 2.73 billion to USD 2.726 billion year-on-year. The automotive business decreased by USD 49 million, while the industrial and commercial business slightly increased by USD 5 million; foreign exchange gains were USD 40 million. The firm believes that the revenue is slightly below its expectations, mainly due to continued pressure in the domestic market.

Looking ahead to the full fiscal year ending in March, the company expects revenue to remain flat year-on-year. In terms of profit, without the deflationary support seen in the first half, along with sales pressure, price pressure, and inflation in labor and materials, the gross margin will still face certain pressures, and the company will make every effort to alleviate this through cost control measures.

Due to the continued pressure on the Chinese automotive business and rising raw material prices, the firm has lowered its net profit forecasts for the fiscal years 2026 and 2027 by 3.4% and 3.1%, respectively, to USD 254 million and USD 271 million; it maintains an "outperform industry" rating, considering the limited disclosure of new business and the resulting valuation pressure, with a target price reduced by 8.6% to HKD 39.85