In "The Big Banks," Citigroup raised the target price for TECHTRONIC IND to 136 yuan, reiterating "Outperform the Market."

Citi published a research report stating that TECHTRONIC IND (00669.HK) had a revenue increase of 4.4% year-on-year to USD 15.2 billion last year, which was below expectations, but still outperformed peers. Net profit rose 6.8% year-on-year to USD 1.2 billion, slightly below market expectations, with a gross margin increasing to 41.2%.

The bank expects that due to strong end demand in technology, energy, and manufacturing sectors, as well as recurring sales from service and maintenance businesses, Milwaukee will achieve low double-digit growth this year, which will continue to drive annual gross margin growth by 40 basis points. Management guidance indicates an EBITDA margin of 10% by 2027.

The bank has lowered its revenue forecasts for the group for 2026 and 2027 by 1.8% and 1.6%, respectively, while raising its profit forecasts by 0.1% and 1%. Its target price has been raised from HKD 108 to HKD 136, reiterating its rating as "outperform."