Citigroup: Johnson Electric Holdings (00179) rated "buy" with target price raised to HK$19

Citigroup released a research report stating that it has given JOHNSON ELEC H (00179) a "buy" rating, with the target price raised from HK$14 to HK$19. The bank stated that due to weak demand for automotive products (APG) and industrial products (IPG) in the US/EU, it has lowered its profit forecast for Dechang for the 2025 fiscal year by 3%, but with new business development, it has raised its earnings forecast for the 2026 to 2027 fiscal years by 1% to 2%. Citigroup pointed out that it expects Dechang's performance for the 2025 fiscal year to focus more on the latest developments in the humanoid Siasun Robot & Automation motor system new business. In addition, the bank noted that peers in the A-share market, Jiangsu Leili Motor (300660.SZ) and Shenzhen Topband (002139.SZ), have also started to expand from the current automotive, home appliance, and power tool applications to the humanoid Siasun Robot & Automation business related to automotive systems.