Techtronic Industries (00669.HK) $opened higher in early trading, rising more than 6 per cent at one point. As of press time, it rose 5.02% to HK $100.5, with a turnover of HK $248 million.
On the news side, the National Bureau of Statistics said that from the perspective of consumption, employment is generally stable and residents' income has increased. Under the role of more accurate prevention and control of the epidemic and policies to promote consumption, household consumption is expected to gradually recover, especially the continued development of preferential policies for the consumption of cars and home appliances, which will boost the growth of commodity sales. In July, retail sales of above-quota automobile goods increased by 9.7% compared with the same period last year, continuing to maintain a relatively rapid growth.
Macquarie pointed out that Techtronic Industries's income and net profit in the first half of this year were in line with the bank's expectations: revenue rose 10 per cent year-on-year to $7 billion, gross margin rose 50 basis points to 39.1 per cent, and EBIT rose 11 per cent to $633 million. Net profit rose 10.4% to $578 million. Taking into account the destocking of consumer / DIY and floor care businesses, the bank cut its revenue / net profit forecast for the second half of 2022 by 11 per cent. But the bank is still bullish on the company's market share advantage, especially its strong growth in the professional segment.
Edit / harry