Goldman Sachs: Raised TECHTRONIC IND's (00669) target price to HK$111.3, rating "Buy"

Goldman Sachs released a research report stating that TECHTRONIC IND (00669) is expected to have a 7% annual revenue growth in 2026, with Milwaukee professional tools returning to a 10% growth after a one-time adjustment in the second half of the year. Ryobi consumer tools are expected to see a moderate recovery after the US interest rate cut. Gross margin is expected to expand by 0.1 percentage points, while SG&A ratio is expected to decrease by 0.1 percentage points. The target price of the stock has been raised from HK$110.1 to HK$111.3, with a "Buy" rating. Goldman Sachs pointed out that TECHTRONIC IND's point of sale (POS) maintaining resilience, but overall revenue growth will slow down in the second half of the year due to Milwaukee's proactive adjustment of export volume to the US. The target revenue growth rate for the full year remains unchanged at 5%, with an expected 3% growth in the second half of the year compared to 7% in the first half. TECHTRONIC IND's pricing strategy is more conservative compared to Stanley Black & Decker, mainly relying on capacity transfer rather than across-the-board price increases to offset the impact of tariffs, hence Goldman Sachs expects the gross margin to remain steady in the second half of the year.