Lyon: Lower TECHTRONIC IND (00669) target price to 108 Hong Kong dollars, reiterating "outperform" rating.

Lyon released a research report stating that the uncertain trade environment, due to tariffs, will inevitably affect the company's performance this year, as TECHTRONIC IND (00669) in China accounts for approximately 15% of the US supply capacity. The bank lowered the company's revenue forecasts for 2025 and 2026 by 3% and 5%, and reduced its net profit forecast by 13% and 17%, while reaffirming its "outperform the market" rating but lowering the target price from HK$ 135 to HK$ 108. The bank holds a conservative view on the company's profitability prospects in the second half of the year. However, on a positive note, the company's cost structure and flexibility advantages will help it compete with industry peers. The bank pointed out that TECHTRONIC IND is expected to complete the transfer of its Chinese production capacity by the end of this year, while competitors will require 12 to 24 months. Although TECHTRONIC IND may face short-term pressures, it is believed that its market share will increase.