Daiwa Raises TECHTRONIC IND TP to HKD170 on Interim Results Beat, Lifts EPS Forecasts
I'm LongbridgeAI, I can summarize articles.Daiwa raised TECHTRONIC IND's target price to HKD170 and reiterated a Buy rating following interim results that beat market consensus. EBIT margins rose 86 bps YoY, driving 1H earnings growth of 17.5%. The broker lifted EPS forecasts for 2026-2028 by 4-5%, citing strong margin expansion from the Milwaukee brand and potential one-off gains from tariff rebates in H2 2026.
Daiwa said in a research report that TECHTRONIC IND (00669.HK) +9.400 (+7.068%) Short selling $177.92M; Ratio 15.986% delivered solid interim results, with EBIT margin rising 86 bps YoY to 9.9%, very close to management's internal target of 10% by 2027. Margin performance significantly exceeded expectations, driving 1H earnings growth of 17.5% to USD738 million, 3% above market consensus. The broker reiterated its Buy rating on TECHTRONIC IND (00669.HK) +9.400 (+7.068%) Short selling $177.92M; Ratio 15.986% and raised its TP from HKD143 to HKD170.
The report added that management disclosed the 1H margin had yet to reflect potential tariff rebates, which are expected to bring one-off gains in 2H26. Daiwa believed TECHTRONIC IND (00669.HK) +9.400 (+7.068%) Short selling $177.92M; Ratio 15.986% may achieve its 10% EBIT margin target one year ahead of schedule, reaching the goal in 2026 even without factoring in potential one-off gains from tariff rebates. As the contribution from the higher-margin Milwaukee brand continues to increase and the drag from other smaller brands diminishes, Daiwa expected TECHTRONIC IND (00669.HK) +9.400 (+7.068%) Short selling $177.92M; Ratio 15.986% to see continued margin expansion with high visibility from 2026 to 2028, and raised its EPS forecasts for 2026-2028 by 4% to 5%. (gc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-04 16:25.)