J.P. Morgan maintained Johnson Electric's (0179.HK) holdings increase rating, with a target price of HK$6.70. J.P. Morgan said that the company's results for the 2011 fiscal year ended at the end of March were stronger than expected, with net profit of US$182 million, 5.1% higher than the bank's expectations, sales of US$2.10 billion, and 3.3% higher than the bank's expectations. J.P. Morgan said that although Johnson Electric's gross profit margin for the second half of the fiscal year fell to 26.4% from 28.7% in the first half of the year, this is expected. Considering the sharp rise in copper and steel prices since September last year, the profit margin could have declined even more. Johnson Electric's ability to transfer most of the rising commodity costs reflects the company's management's ability to control costs, a robust automotive market, and strong demand for micromotors. Johnson Electric declined 0.19% throughout the day to close at HK$5.26.