HK Stock Market Move | JOHNSON ELEC H (00179) drops over 7%; Citi expects its net profit to fall 18% year-on-year in the first half of fiscal 2027.

JOHNSON ELEC H (00179) dropped over 7%, down 6.6% as of press time, at HK$16.69, with a turnover of HK$107 million. On the news front, Citi released a research report stating a bearish view on Johnson Electric, expecting the company's net profit to fall 18% year-on-year to US$109 million in the first half of fiscal 2027. Citi believes Johnson Electric is mainly exposed to copper price costs, and copper prices have risen over 30% since the beginning of this year. Deutsche Bank previously also cited management as saying that gross margins may face multiple challenges in fiscal years 2026 to 2027, including rising freight costs due to geopolitical tensions, rising plastic resin costs, an expected 3% year-on-year decline in global light vehicle production, and widespread increases in raw material costs such as copper, silver, aluminum, steel, and electronic components.