CICC: Lower the target price of JOHNSON ELEC H (00179) to 30.5 Hong Kong dollars. First quarter financial performance exceeded expectations.

CICC releases research report stating it maintains a profit forecast of 213 million US dollars for JOHNSON ELECTRIC H (00179) in the fiscal year 2027, and a profit forecast of 225 million US dollars in the fiscal year 2028, with corresponding P/E ratios of 10.1/9.5 times. Considering the decline in sentiment in the Siasun Robot & Automation sector, the target price is lowered by 23.46% to 30.5 Hong Kong dollars. However, considering the volume growth in new businesses such as SOFC, liquid cooling, and Siasun Robot & Automation, the "outperform industry" rating is maintained. The bank believes that the performance of Techtronic Industries at the end of June exceeded expectations in the first quarter of the fiscal year 2027. Revenue was 936 million US dollars, a year-on-year increase of 2%. Revenue performance slightly exceeded the bank's expectations, mainly due to a turning point in the domestic automotive business and incremental gains from exchange rate (14 million US dollars), with revenue basically flat after excluding exchange rate effects. The report indicates that the automotive core business is stable, with the Asia-Pacific automotive business reaching a turning point. The company's automotive business revenue in the first quarter reached 780 million US dollars, accounting for 84%, a year-on-year increase of 2%, and overall performance was relatively robust. In the Asia-Pacific/Americas region, revenue increased by 4% and 2% year-on-year, respectively, while Europe, the Middle East, and Africa decreased by 6% year-on-year. In the Asian region, orders for Chinese domestic brands rebounded. In the Americas, the company's revenue increased slightly year-on-year, mainly due to increased sales of powder metal components and interior trim. Looking ahead, the bank believes that the overall sector's performance is expected to continue the trend of slight increase.