Lyon: TECHTRONIC IND(00669) target price lowered to 134 Hong Kong dollars, flagship brand growth steady.

Lyon released a research report stating that considering the adjustment of low-profit businesses, it lowered TECHTRONIC IND's (00669) profit forecast for 2026 to 2028 by 1.1% to 3.4%. However, due to the company's announcement yesterday to cancel the repurchase of 300,000 shares and plan to repurchase $500 million worth of shares in the next 18 months, the target P/E ratio was slightly raised from 19.5 times to 19.8 times to reflect investors' consensus on buybacks amid macroeconomic uncertainty. The target price was lowered from HK$136 to HK$134, and the "outperform the market" rating was maintained. TECHTRONIC IND's flagship brands Milwaukee and Ryobi recorded mid- to high-single-digit growth. However, due to restructuring and macroeconomic uncertainty, the remaining business segments may still be a drag. Milwaukee's 15% sales growth came from data centers, believing that with its leading position in the mechanical, electrical, and plumbing engineering fields, it can achieve double-digit growth in the long term, bringing highly visible demand from non-residential end markets.