Shares of Johnson Elec H (00179) have risen more than 7%. At the time of writing, the stock is up 7.48% to HK$23.86, with a trading turnover of HK$239 million.
A recent analysis highlighted the company's capabilities in powder metallurgy technology. The powder metallurgy products manufactured by the firm have applications across multiple sectors, including solid oxide fuel cells (SOFC) and automotive. With the growing demand for SOFC power generation in the AI data center sector, Johnson Electric's powder metallurgy business is positioned for rapid expansion.
The analysis also noted that several of the company's industrial and commercial products are expected to begin contributing revenue after the 2027 fiscal year. Given that new products typically offer favorable profit margins, earnings forecasts for the 2026/27 to 2028/29 fiscal years have been revised upward.
Separately, a report from J.P. Morgan indicated that the company's results for the fiscal year ending March 2026 were near the upper end of its previous profit warning forecast, though underlying trends remain mixed. The Industrial Products Group (IPG) has returned to growth, driven by demand for AI data center cooling systems, medical equipment, and heating solutions.
Management pointed out that the scaling of its AI infrastructure business is progressing faster than its humanoid robotics segment. The company is now integrated into the liquid cooling ecosystem associated with Nvidia's Blackwell platform.
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