Citigroup: Lower Johnson Electric Holdings (00179) target price to HK$32, the third-quarter performance slightly below expectations.

Citigroup released a research report stating that JOHNSON ELEC H (00179) third quarter performance of the 2026 fiscal year was slightly below expectations. Due to the recent rise in copper costs, the bank has lowered its profit forecast for the 2026-2028 fiscal years by about 5%, reducing the target price from HK$33 to HK$32. They maintain a "neutral" rating, expecting the company's stock price to face pressure in the short term due to underperformance. The bank believes that the company's value is still overestimated due to its involvement in the AI liquid cooling pump and humanoid Siasun Robot & Automation supply chain industries. It is expected that this business will account for only 1% and 3% of the company's sales and gross profit in the 2026 and 2027 fiscal years, respectively, and will still make a slight contribution to the 2027 fiscal year.