Citigroup: Johnson Electric's (00179) Profit Warning Signals Ongoing Earnings Downturn Risks, Maintains "Neutral" Rating

Stock News04-22 11:36

Citigroup has released a research report stating that Johnson Electric Holdings (00179) has issued a profit warning, indicating continued downside risks to its earnings. The group forecasts that its net profit for the fiscal year ending March 2026 will decline by 21% to 25% year-on-year, to between $197 million and $207 million. The bank believes that the recent sharp rise in raw material costs, coupled with the longer time required for Johnson Electric to pass these increased costs on to customers, is expected to continue posing risks to its profit margins. Consequently, Citigroup has maintained its "Neutral" rating on the stock with a target price of HK$32.

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