Johnson Electric Holdings (0179) AI Stock Analysis

• Market Cap: HK$26.84B
• Dividend Yield: 2.18%
• Average Volume (3M): 6.52M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.92
• Revenue Growth: -3.02%
• EPS Growth: 11.38%
• Country: HK
• Employees: 30,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 934,412,050
• 10 Day Avg. Volume: 4,894,091
• 30 Day Avg. Volume: 6,517,460
• PEG Ratio: 0.45
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 7.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$50.11
• Price Target Upside: 52.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.25
• Revenue Forecast (FY): HK$28.94B

• Rating: 64 Neutral
• Price Target: HK$32.00 ▼(-2.50% Downside)

Johnson Electric Holdings has a strong financial foundation with consistent revenue growth and improving profitability. However, the technical indicators suggest bearish momentum, which could pose short-term risks. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Balance Sheet Health

A lower debt-to-equity ratio indicates reduced leverage, enhancing financial stability and providing the company with greater flexibility to invest in growth opportunities.

Profitability Margins

Improving profit margins indicate enhanced operational efficiency and cost management, supporting long-term profitability and competitive positioning.

Cash Generation

Strong cash generation supports the company's ability to fund operations, invest in growth, and return capital to shareholders, ensuring financial resilience.

Negative Factors

Revenue Growth Decline

Modest revenue growth may limit the company's ability to expand market share and scale operations, potentially impacting long-term competitiveness.

Free Cash Flow Decline

A decline in free cash flow growth can constrain the company's ability to invest in new projects and innovations, potentially affecting future growth prospects.

Revenue Contraction

A contraction in revenue growth suggests challenges in maintaining sales momentum, which could impact the company's market position and long-term profitability.

Johnson Electric Holdings Business Overview & Revenue Model

Company Description

Johnson Electric Holdings (0179) is a global leader in the design and manufacture of electric motors, actuators, and motion systems. The company operates in various sectors, including automotive, industrial, and consumer products, providing innovative solutions that enhance the performance and efficiency of a wide range of applications. Johnson Electric's core products include small motors, solenoids, and precision components that are utilized in automotive systems, home appliances, and medical devices.

How the Company Makes Money

Johnson Electric generates revenue primarily through the sale of its electric motors and motion systems to various industries. Key revenue streams include automotive components, which account for a significant portion of its sales, as well as industrial applications and consumer products. The company benefits from long-term partnerships with major automotive manufacturers and other industries, providing customized solutions that meet specific client needs. Additionally, Johnson Electric invests in research and development to innovate and improve its product offerings, which helps maintain its competitive edge and drive sales growth. The company's global manufacturing footprint and supply chain efficiencies also contribute to its profitability.

Johnson Electric Holdings Financial Statement Overview

Summary

Johnson Electric Holdings exhibits a strong financial position, characterized by consistent revenue growth, improving profitability margins, and a solid balance sheet with low leverage. Despite a slight decrease in free cash flow growth, the company maintains healthy cash generation and operational efficiency. Overall, the financials reflect a well-managed company with potential for steady growth.

Income Statement

The company shows strong profitability with gross profit and net profit margins improving over the years. Gross profit margin in 2025 is 23.1%, up from 19.6% in 2022. Net profit margin has also increased to 7.2% in 2025 from 4.2% in 2022. Revenue growth has been consistent but modest at around 5-6% annually. EBIT and EBITDA margins show healthy operational efficiency, with the EBITDA margin being 16.4% in 2025.

Balance Sheet

The company's balance sheet is solid, characterized by a strong equity base. The debt-to-equity ratio has improved significantly to 0.16 in 2025 from 0.26 in 2022, indicating reduced leverage. The equity ratio is robust at 65.6% in 2025, reflecting financial stability. Return on equity improved to 9.9% in 2025, showcasing enhanced shareholder returns.

Cash Flow

Cash flow from operations remains strong, although there was a decline from previous years. The operating cash flow to net income ratio is 1.7 in 2025, indicating efficient cash generation. Free cash flow has been positive, with a growth rate of -36.6% from 2024 to 2025. The free cash flow to net income ratio is 0.95 in 2025, suggesting a healthy cash position relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.12B	3.65B	3.81B	3.65B	3.45B	3.16B
Gross Profit	3.73B	843.34M	850.72M	715.91M	701.91M	723.29M
EBITDA	2.71B	575.76M	577.59M	476.87M	473.46M	512.93M
Net Income	1.17B	262.80M	229.23M	157.81M	146.35M	212.03M
Balance Sheet
Total Assets	4.26B	4.06B	4.22B	4.10B	4.34B	4.02B
Cash, Cash Equivalents and Short-Term Investments	936.92M	817.98M	822.93M	428.07M	359.51M	544.25M
Total Debt	420.76M	423.54M	634.64M	567.42M	618.33M	474.73M
Total Liabilities	1.44B	1.36B	1.62B	1.61B	1.84B	1.71B
Stockholders Equity	21.61B	2.67B	2.55B	2.45B	2.42B	2.22B
Cash Flow
Free Cash Flow	1.49B	252.58M	395.73M	205.93M	-132.85M	170.81M
Operating Cash Flow	2.73B	448.09M	581.88M	432.49M	183.59M	434.38M
Investing Cash Flow	-1.06B	-94.26M	-225.41M	-240.80M	-351.20M	-264.63M
Financing Cash Flow	-532.03M	-305.02M	-5.87M	-110.37M	-23.95M	-37.15M

Johnson Electric Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0179, the sentiment is Negative. The current price of 32.82 is above the 20-day moving average (MA) of 29.58, above the 50-day MA of 31.97, and above the 200-day MA of 24.74, indicating a neutral trend. The MACD of -0.83 indicates Negative momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 22.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0179.

Johnson Electric Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1571	76 Outperform	HK$3.75B	7.19	13.59%	13.37%	-3.80%	-27.62%
0564	75 Outperform	HK$45.20B	7.84	19.86%	5.96%	2.23%	13.60%
0425	71 Outperform	HK$37.07B	13.24	12.26%	1.37%	11.06%	22.10%
1316	69 Neutral	HK$16.69B	19.56	5.45%	1.02%	4.73%	492.16%
1057	65 Neutral	HK$12.93B	20.73	9.59%	1.27%	35.32%	24.24%
0179	64 Neutral	HK$26.84B	12.91	9.85%	2.18%	-3.02%	11.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Johnson Electric Holdings Corporate Events

Johnson Electric Reports Stable Interim Results Amid Market Challenges

Johnson Electric Holdings Limited reported stable financial results for the six months ending September 2025, despite challenging macro-economic conditions and global trade uncertainties. The company experienced a slight decline in group sales by 1% to US$1,833 million, while net profit attributable to shareholders increased by 3% to US$133 million. The Automotive Products Group, which constitutes 84% of total sales, saw a 3% decline in sales on a constant currency basis, largely due to price reductions and market share losses among Sino-foreign joint venture OEM customers in China. However, Johnson Electric is making progress in securing new business with leading domestic Chinese OEMs, aligning with the structural shift towards electrification in the automotive sector.

Johnson Electric Announces Interim Dividend for 2025

Johnson Electric Holdings Limited has announced an interim dividend of HKD 0.17 per share for the six months ending 30 September 2025, with payment scheduled for 6 January 2026. This announcement reflects the company’s financial health and commitment to providing returns to its shareholders, potentially reinforcing its position in the market and impacting investor sentiment positively.

Johnson Electric Schedules Board Meeting to Approve Interim Results

Johnson Electric Holdings Limited has announced a board meeting scheduled for November 12, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns for shareholders, impacting its market positioning and stakeholder interests.