Nomura: Maintains "buy" rating on TECHTRONIC IND (00669) and raises target price to HK$125

Nomura released a research report, maintaining a "buy" rating on TECHTRONIC IND (00669), with the target price raised from HKD 115 to HKD 125 to reflect potential incremental sales in the first quarter of the 2025 fiscal year due to the Los Angeles fire accident in the United States, as well as the solid growth prospects of its subsidiary Milwaukee in the 2025 fiscal year. TECHTRONIC IND's revenue in the 2024 fiscal year increased by 6.5% year-on-year, and profit increased by 14.9% year-on-year, with an annual dividend of HKD 2.26, a 17.1% increase year-on-year. Nomura pointed out that TECHTRONIC IND's revenue in the 2024 fiscal year increased by 6.5% year-on-year, in line with the bank's expectations, but 0.1% lower than the market consensus; profit increased by 14.9% year-on-year, 0.5% lower than the bank's and market expectations. In addition, the TECHTRONIC IND board of directors proposed a final dividend of 118 cents per share, together with an interim dividend of HKD 1.08, resulting in an annual dividend of HKD 2.26, implying a 17.1% increase year-on-year. The bank expects that the first quarter of the 2025 fiscal year for TECHTRONIC IND will bring additional sales due to the Los Angeles fire, which will be beneficial for the company's performance in the first half of the 2025 fiscal year.