CICC: Maintains "Outperform" rating on Johnson Electric Holdings (00179); FX and costs drag short-term profit

Zhitong Finance APP has learned that CICC issued a research report stating that, taking into account exchange rate fluctuations and rising costs, it has lowered Johnson Electric Holdings' (00179) FY27/FY28 profit forecasts by 42.3%/16.5% to USD 123 million/188 million, corresponding to current P/E of 13.2x/8.6x; at the same time, expectations of interest rate hikes have led to a decline in Hong Kong stock valuations, and the target price has been cut by 33.6% to HKD 20.25, corresponding to FY27/FY28 P/E of 19.8x/12.9x, implying 50% upside from the current share price, while maintaining the "Outperform" rating.