Macquarie: Maintains TECHTRONIC IND (00669) "outperform" rating, raises target price to HK$134

Macquarie released a research report, maintaining a "outperform" rating for TECHTRONIC IND (00669), with a target price raised by 12% to HK$134. They also raised the net profit forecasts for 2025 and 2026 by 1.6% and 1.2% respectively. The bank believes that TECHTRONIC has strong free cash flow generation capabilities, expecting to achieve a net cash position this year, and an EBIT profit margin of 10% by 2026. Macquarie points out that the revenue contribution from TECHTRONIC's brand Milwaukee continues to increase, expecting it to reach 70% this year. This is expected to drive the EBIT profit margin to expand to 9.2% for the full year. Additionally, higher capital expenditures will lead to further improvements in productivity and efficiency. They forecast an 11% revenue growth for Milwaukee in 2025, and a 7% growth in overall group revenue.