UBS gave Johnson Electric Holdings (0179.HK) a purchase rating for the first time. The target price was HK$5.20. UBS is optimistic about the company's medium-term prospects. UBS believes Johnson Electric Holdings will benefit from continued demand for motor vehicle products, particularly as demand for high-power vehicles rises in China. UBS pointed out that numerous patented products, strong cash flow, and net cash position have created Johnson Electric Holdings' leading position in the industry, all of which are seen as positive factors. UBS anticipates that Johnson Electric Holdings' revenue and net profit for the 2011-2014 fiscal year will both grow at a compound annual rate of 8%. The stock rose 2.47% to close at HK$4.57 last Friday.