According to the Citigroup report, based on Dechang (00179.HK)'s annual exchange loss situation falling short of expectations, the operating costs required for the acquisition were higher than expected, and the revenue from industrial and commercial products continued to decline. As a result, the 2017-18 earnings forecast was lowered by 15% to 16%. Based on the 2017 price-earnings ratio forecast 11 times, the target price dropped from 22 yuan to 20 yuan.

The bank estimates that Stteco International, which was acquired last year, will drag down the Group's marginal profit for fiscal year 2017 because its profit margin is lower than the Group's other businesses, and it will take 3-4 years for several new plants to improve profits to be reflected, maintaining Johnson's “selling” rating.