Citigroup maintained the sales rating of Johnson Electric (00179-HK) and raised Johnson's profit forecast for 2012-2014 by 11%/3%/1%, but the target price was lowered from HK$3.65 to HK$3.5 due to slowing prospects in Europe and the US and increasing the risk of declining revenue. Citigroup said that Johnson Electric's profit increased 9% to US$102 million in the first half of the fiscal year, which was in line with market expectations, but was higher than Citibank's forecast. The growth was driven by falling tax rates and financial costs. Operating interest rates fell 4%, and profits contracted due to rising raw material costs and wages in the Mainland. Johnson Electric declined 0.49% across the day to close at HK$4.05.