HK Stock Market Move | TECHTRONIC IND(00669) falls more than 3% again, market worries that Trump's election will lead to increased tariffs and pressure on export stocks.

TECHTRONIC IND(00669) fell more than 3% again, dropping over 5% in the afternoon yesterday. As of the time of writing, it is down 3.27% at 106.5 Hong Kong dollars, with a turnover of 2.31 billion Hong Kong dollars. On the news front, the market is worried that Trump's election will lead to tariff increases, putting pressure on export stocks like TECHTRONIC IND for the second consecutive day. Nanhua Futures pointed out that after Trump's election, based on the information released in his statements, he is likely to continue the "America First" concept and continue to implement trade protectionist policies such as imposing tariffs. This will directly affect the profit margins and market share of Chinese export companies. However, Daiwa Securities released a research report believing that the market's concerns about potential new tariffs may be overstated, as TECHTRONIC IND has a diversified global production layout. According to the bank's estimate, China's capacity will only account for one-third of its total capacity next year. They believe the company has pricing power and reiterate a "buy" rating. Daiwa Securities lowered TECHTRONIC IND's profit forecasts for the next two years by 1-2%, based on a more realistic profit margin expansion forecast, and raised the target price from 120 Hong Kong dollars to 127 Hong Kong dollars.