JP Morgan: Electric tool industry regains growth, prefers TECHTRONIC IND (00699) with a target price of HK$136.

JPMorgan released a research report stating that TECHTRONIC IND (00699) is one of the bank's top stock picks for 2026. The report believes that the power tool industry is entering a growth trajectory, driven by factors such as normalization of supply chain and inventory adjustments, more favorable interest rate cycles, and the company's own catalysts. The bank stated that as the market refocuses on the industry's growth potential, the sector is expected to outperform the market for the remainder of the year. They continue to be positive on TECHTRONIC IND, maintaining a "overweight" rating with a target price of HK$136. Regarding TECHTRONIC IND, the bank expects that revenue growth for the Milwaukee brand will accelerate again as the Total Addressable Market (TAM) rapidly expands. Meanwhile, after exiting the HART brand from Walmart, the company will refocus on consumer operations, especially the Ryobi brand at Home Depot. After discussions with industry leaders, the bank reconfirmed that the industry's destocking cycle is approaching completion, pricing power remains strong, industry consolidation is accelerating, and this is favorable for large brand suppliers. In addition, the impact of supply chain shifts on the industry has largely passed, and there is a noticeable recovery in professional and DIY demand.