HK Stock Market Move | JOHNSON ELEC H (00179) Falls Over 3%; Interim Results Forecast Below Market Expectations, Institutions Say Multiple Factors Still Constrain Growth of Core Business

JOHNSON ELEC H (00179) fell over 3% in late trading, down 3.37% as of press time to HK$13.17, with turnover of HK$55.5033 million. On the news front, JOHNSON ELEC H recently issued a profit warning. A CICC research report noted that the company expects profit attributable to shareholders of US$50 million to US$58 million for the first half of FY27, down 56%-62% year-on-year, while revenue is roughly flat compared with the same period last year. The bank believes that of the profit shortfall, about US$49 million to US$55 million comes from foreign exchange-related effects. 1H27 revenue was in line with market expectations, while profit was below market expectations, mainly due to exchange losses. CICC added that with the ramp-up of new businesses and diversification of core business customers, the company's revenue is expected to achieve steady growth with some upside, while profitability remains under pressure. In the past, the automotive product group accounted for more than 80% of the company's revenue. In Q1 of FY27, automotive business revenue grew only 2% year-on-year, reflecting that global automotive demand, changes in customer structure and price competition are still constraining growth of the core business. Looking ahead to the second half, the recovery of core business profitability will mainly depend on the pace of implementation of price adjustments and the pass-through of raw material costs, as well as progress in customer structure transformation, and profitability may still come under pressure.