Lyon: Raised TECHTRONIC IND's (00669) target price to HK$136, reiterating its "outperform the market" rating.

Lyon issued a research report stating that TECHTRONIC IND (00669) saw a 4.4% year-on-year increase in revenue to 15.2 billion USD last year, lower than expected but still outperforming its peers. Net profit increased by 6.8% year-on-year to 1.2 billion USD, slightly below market expectations, with a gross profit margin of 41.2%. The bank lowered the group's revenue forecast for 2026 and 2027 by 1.8% and 1.6% respectively, while profit forecasts were raised by 0.1% and 1%, with the target price raised from 108 HKD to 136 HKD, reiterating its rating as "outperform". The bank predicts that Milwaukee will see low double-digit growth this year due to strong demand in technology, energy, and manufacturing sectors, as well as regular sales in the service and maintenance business, which will continue to drive annual gross margin growth of 40 basis points. Management has guided that the pre-tax profit margin will reach 10% by 2027.