Johnson Electric Holdings (00179) dropped more than 3% in late trading, falling 3.37% to HK$13.17 as of press time, with turnover of HK$55.5033 million.
On the news front, Johnson Electric Holdings recently issued a profit warning. A research report from CICC pointed out that the company expects profit attributable to shareholders of US$50 million to US$58 million for the first half of fiscal year 2027, representing a year-on-year decline of 56% to 62%, while revenue is expected to be roughly flat compared with the same period last year. The bank believes that of the profit shortfall, approximately US$49 million to US$55 million comes from foreign exchange-related impacts. First-half FY2027 revenue was in line with market expectations, but profit fell short of market expectations, mainly due to exchange losses.
CICC further noted that with new business ramping up and diversification of core business customers, the company's revenue is expected to achieve steady growth with a slight upward trend, though profitability will remain under pressure. In the past, automotive products accounted for more than 80% of the company's revenue. In the first quarter of fiscal year 2027, automotive business revenue grew only 2% year-on-year, reflecting that global automotive demand, changes in customer structure, and price competition continue to constrain core business growth.
Looking ahead to the second half of the year, the recovery of core business profitability will mainly depend on the pace of implementation of price adjustments and raw material cost pass-through, as well as progress in customer structure transformation. Profitability may still face pressure.
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