Citi released a research report stating that due to trade fluctuations and slightly higher selling, general and administrative expenses (SG&A), the net income forecast for techtronic ind (00669) for the fiscal years 2025 and 2026 has been lowered by 4.4% and 3.4% respectively, and the target price has been adjusted from 138 HKD to 135 HKD, reaffirming the "outperform" rating. The company's advantages in product innovation and solution development should further expand the profit gap with its industry peers.
Citi expects that techtronic ind's brand matrix and close ties with non-residential distribution channels will drive Milwaukee's sales growth back to double digits. The bank estimates that, regarding trade uncertainty, techtronic ind has significantly enhanced its supply chain resilience, reducing China's exposure to the USA market. Therefore, compared to its competitors, techtronic ind is better prepared.
