Citigroup: raised JOHNSON ELEC H(00179) target price to 29 Hong Kong dollars, included in industry's top pick

Citi released a research report stating that JOHNSON ELEC H (00179) just announced its first quarter sales performance and announced the establishment of two equity joint ventures with Shanghai Mechanical & Electrical Industry (600835.SH). This move will enhance Johnson Electric's component engineering capabilities in new businesses. The target price of JOHNSON ELEC H was raised from HK$23.5 to HK$29 by the bank, maintaining a "buy" rating and including the company in its preferred list of Chinese industrial stocks. The bank stated that although JOHNSON ELEC H's sales in the first quarter declined by 2%, sales are expected to rebound in the second and third quarters due to a solid backlog of orders. In addition, the company's strong momentum in the humanoid robot market is expected to bring about larger business opportunities.