HK Stock Market Move | TECHTRONIC IND (00669) rose more than 4% in early trading. The company said it is prepared to face the challenge of tariffs. Morgan Stanley expects its performance to be strong in the second half of last year.

TECHTRONIC IND (00669) rose more than 4% in the morning session, rising 4.46% to 105.3 Hong Kong dollars with a trading volume of 194 million Hong Kong dollars at the time of writing. On the news front, TECHTRONIC IND announced that, in response to the recent announcements of potential 25% tariffs on Mexico and Canada and 10% tariffs on China, they reiterate their commitment to the resilience of the company as CKH HOLDINGS, confidently able to adapt to the potential new tariffs imposed by the Trump administration. With the delay of tariffs on Mexico and Canada for one month, considering mitigation measures and potential further actions, it is expected to have a negligible impact on the 2025 financial statements. J.P. Morgan released a research report stating that the U.S. market accounted for about 75% of TECHTRONIC IND revenue in the first half of 2024, and the resilience of the company lies in its early advantage in diversifying the supply chain and its operational flexibility to quickly adjust production layouts. The bank believes that with a strong balance sheet and positive supply chain restructuring, the company is more capable than ever of meeting these challenges. The bank expects a year-on-year increase in profit of 18% in the second half of last year, while the ability to generate free cash flow will strengthen, further reducing the leverage ratio of the balance sheet.