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2026-10-12 15:52:08 Deutsche Bank issued a report stating that JOHNSON ELEC H (00179.HK)'s profit warning for 1H of the current fiscal year ending September this year came in below market expectations, guiding for reported net profit to fall 56%-62% YoY. The main factor involved unfavorable foreign exchange fluctuations of USD49 million to USD55 million YoY, as the company benefited from substantial foreign exchange gains in 1H FY2025/26, while no comparable gains were recorded in 1H FY2026/27. The remaining decline of about USD26 million to USD28 million was mainly attributable to gross margin pressure, including pricing actions taken in response to competition in China's automobile market, provisions for customer credits and claims under negotiation, rising costs of raw materials and other inputs such as copper, silver, aluminum, steel and electronic components, as well as inflationary pressure on labor and other operating costs. This was partly offset by favorable changes in other income, provisions and taxes. Interim sales are expected to remain broadly stable YoY at about USD1.8 billion, below the company's previous guidance of mid-single-digit growth for full-year FY2026/27. In response to the latest profit warning, the bank slightly adjusted its full-year FY2026/27 revenue forecast for the year ending March 2027 down by 2% to USD3.8 billion, lowered its gross margin assumption by 1.5 ppts to 21.8%, and after factoring in foreign exchange fluctuations, cut its full-year net profit forecast by 38% to USD160 million. The rating was maintained at Buy, while the TP was lowered from HKD40 to HKD33.5. (ha/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |