JPMorgan on Johnson Electric Holdings (0179.HK): FY27 H1 Profit Warning — Estimates and Target Price Cut
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
Johnson Electric Holdings (0179.HK) issued a profit warning for the first half of fiscal 2027 (six months ended September 2026), guiding net profit down 56–62% year on year to US$50–58 million. Revenue held roughly flat, but FX accounted for about two-thirds of the profit decline, while persistent pricing pressure and cost inflation compressed margins further. The company noted that growth in its SOFC business has not yet offset weakness in traditional operations, and delayed launches of China automotive programs have limited capacity utilization.
JPMorgan expects the H1 net margin to fall to 2.7–3.2%, from 7.3% in 1H26 and 3.8% in 2H26, with SOFC revenue contribution rising from about 3% to about 5%. The bank cut FY27–29 net profit forecasts by 29%/22%/23% to US$169 million, US$247 million and US$309 million, and lowered its target price from HK$21.00 to HK$18.00 while retaining a Neutral rating. It projects FY27 gross margin easing from 23.0% to 21.5% before recovering to 22.5% and 23.0% in FY28/29, with revenue growth of 1% in FY27 and 10%/9% in FY28/29.