JP Morgan: Lowered TECHTRONIC IND (00669) target price to HKD 126, maintaining "neutral" rating.

JPMorgan released a research report stating that despite uncertainties about the impact of tariffs and unclear factors in US demand due to fluctuations in trade policy, TECHTRONIC IND (00669) operations remain resilient within the year. Based on a discounted cash flow model for the fiscal year ending December 2026, the bank has lowered the group's target price from 138 Hong Kong dollars to 126 Hong Kong dollars, with a potential upside of about 37% from the current level, maintaining a "overweight" rating. The report indicates that the group's brand Milwaukee is expected to see strong sales growth in the first half of the 2025 fiscal year, with a growth rate of 10-15% in the lower range. However, the DIY and consumer divisions face challenges, prompting a slight downward revision of revenue forecasts by about 2%, while profit margins are assumed to remain unchanged. TECHTRONIC IND and its competitors have raised prices, and JPMorgan believes that this may have a slight negative impact on demand, but it is expected to positive industry sales growth for the fiscal year. TECHTRONIC IND is actively adjusting its supply chain to address tariff fluctuations in China, Vietnam, and Mexico, ensuring ongoing operational efficiency. It is also expected that TECHTRONIC IND will achieve a 10% EBIT profit margin target for the 2026 fiscal year.