HK Stock Market Move | JOHNSON ELEC H (00179) drops over 5%, share price has halved year-to-date; exchange rate and costs drag down interim profit.

JOHNSON ELEC H (00179) dropped over 5%, touching HK$3.13 to hit a new stage low, with the stock down 55% year-to-date. As of press time, it fell 5.37% to HK$13.21, with turnover of HK$29.6214 million. On the news front, JOHNSON ELEC H recently issued a profit warning, expecting profit attributable to shareholders for the six months ending in September to be between US$50 million and US$58 million, a year-on-year decline of 56% to 62%. Of this, approximately US$49 million to US$55 million came from unfavorable foreign exchange-related impacts, while rising raw material and other input costs, as well as inflationary pressure on labor and other operating costs, also negatively affected profitability. Citi released a research report stating that given the company's margin outlook is worse than expected, the bank lowered its earnings forecasts for fiscal years 2027 to 2029 by 21% to 37%, cut its target price by 25.5% from HK$19.6 to HK$14.6, and downgraded its rating from "Neutral" to "Sell." JP Morgan lowered its net profit forecasts for the company for each year from fiscal 2027 to 2029 by 29%, 22%, and 23%, to US$169 million, US$247 million, and US$309 million, which are 25%, 8%, and 7% below market expectations.