Citigroup maintains "buy" rating on TECHTRONIC IND (00669) with a target price of HK$140.

Citigroup released a research report stating that it maintained a "buy" rating on TECHTRONIC IND (00669) with a target price of HK$140. The company's main customer, Home Depot, reported third-quarter performance for the 2024 fiscal year, with same-store sales (SSSG) decreasing by 1.3%, better than the market's expectation of a decrease of 2-2.5%, and also better than the 3.3% decrease in the second quarter. Home Depot raised its sales guidance for the 2024 fiscal year to a decrease of 2.5%, compared to the previous guidance of a decrease of 3-4%. SSSG exceeded expectations, benefiting from normal weather conditions, seasonal products, outdoor projects, and increased demand for hurricane-related products. The bank stated that, as Home Depot is Techtronic's largest customer, it expects Techtronic to have a strong momentum in the third quarter. However, the current stock price is being weighed down by geopolitical factors. The bank believes that this is a good buying opportunity. Techtronic is also one of the bank's top picks in the Chinese industrial sector. The bank prefers Techtronic over CHERVON (02285).