--- title: "Industrial Securities: The prosperity trend of the tool industry is on the rise, and there is ample room for Chinese companies to increase their market share" type: "News" locale: "zh-HK" url: "https://longbridge.com/zh-HK/news/276817983.md" description: "Industrial Securities released a research report indicating that the global tools market size exceeds USD 100 billion. It is expected that by 2026, influenced by the expectation of interest rate cuts, the real estate and consumer cycle in the United States will bottom out and rebound, leading to an upward trend in the tools industry. Chinese tool companies, leveraging their brands, product iterations, and global layout, are expected to accelerate their rise and increase market share. It is recommended to pay attention to companies such as GreatStar, CHERVON, TECHTRONIC IND, and ALTON ELECTRICAL" datetime: "2026-02-25T02:29:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276817983.md) - [en](https://longbridge.com/en/news/276817983.md) - [zh-HK](https://longbridge.com/zh-HK/news/276817983.md) --- > 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/276817983.md) | [English](https://longbridge.com/en/news/276817983.md) # Industrial Securities: The prosperity trend of the tool industry is on the rise, and there is ample room for Chinese companies to increase their market share According to the Zhitong Finance APP, Industrial Securities released a research report stating that looking ahead to 2026, with expectations of interest rate cuts, the U.S. real estate and consumer cycles are likely to bottom out and rebound. Coupled with the resonance of the inventory cycle and the renewal cycle, the prosperity trend of the tool industry is on the rise. In terms of competitive landscape, the strong will continue to grow stronger. Chinese tool companies with brand momentum, strong product iteration capabilities, deepening channel layouts, and well-established global production capacities are expected to accelerate their rise, with ample room for market share improvement. It is recommended to pay attention to: GreatStar Technology (002444.SZ) with strong performance certainty and relatively low valuation, CHERVON (02285) with significant performance recovery elasticity and bottom valuation, TECHTRONIC IND (00669) as a leading stock that transcends cycles, and ALTON ELECTRICAL (301187.SZ) which is undergoing operational bottoming and recovery. ## The main viewpoints of Industrial Securities are as follows: **Market Space: A hundred billion dollar track, dominated by demand from Europe and the U.S.** The global tool market size exceeds a hundred billion dollars, with a stable growth center of about 6.4%. By category, electric tools and outdoor power equipment (OPE) account for over 60%, with better elasticity in volume and price growth; hand tools account for about 20%, with steady expansion. By region, demand from Europe and the U.S. dominates, with a deep DIY culture and high labor costs being the core long-term drivers. Tool companies have over 60% of their revenue exposure in North America. **Catalysts: Resonance of the real estate cycle and inventory cycle, upward trend in prosperity** 1. Real estate bottoming and recovery: About 60% of tool demand is related to the real estate chain, highly synchronized with the U.S. real estate cycle. The Federal Reserve is currently in a rate-cutting phase, and mortgage rates have fallen from their highs, which is expected to drive a recovery in existing home sales that are at historical lows, thereby improving terminal demand for tools. 2) Channel replenishment begins: Home Depot and Lowe's, the two major key accounts, have a market share of over 50%, and their replenishment/de-stocking behavior directly leads upstream orders. The industry is experiencing a complete inventory cycle from 2020 to 2024, and current channel inventory is at a relatively low level. Coupled with the warming of terminal demand, a new round of replenishment cycle is expected to begin. **Competitive Landscape: The strong continue to grow stronger, with Chinese brands rising** The first tier companies, TECHTRONIC IND and Stanley Black & Decker, have a scale in the tens of billions of dollars, with a market share in the range of 10-15%. In trend, TECHTRONIC IND has completed its overtaking and established its position as the global leader. GreatStar Technology and CHERVON rank second globally in hand tools and OPE respectively, with the gap to the leader continuously narrowing. Overall scale expansion is faster than the market, with small but clear upward trends in market share. Growth drivers: 1) Brand side: Leading companies TECHTRONIC IND and Stanley Black & Decker have taken the lead in completing brand transformation through large-scale acquisitions, achieving scale leaps. Chinese brands GreatStar Technology and CHERVON are accelerating their layout in independent brand incubation and merger expansion, currently still in a growth phase of structural optimization and category expansion, with ample upward space. 1. Product side: The lithium battery and smartization of the tool industry are accelerating. TECHTRONIC IND, relying on forward-looking technology layout and the brand momentum of Milwaukee, is capturing structural dividends and achieving excess growth in the lithium battery process of electric tools; CHERVON focuses on the lithium battery OPE track, with the EGO brand relying on a 56V battery platform to build a moat advantage in the high-end market, and is expected to benefit from the increase in lithium battery OPE penetration rates to achieve elastic growth 2. Channel side: TECHTRONIC IND is deeply bound to Home Depot to obtain traffic tilt, with a single customer contributing approximately 45% of revenue; GreatStar and CHERVON, in addition to deepening traditional offline KA channels, are also simultaneously enhancing online channels and distribution channel expansion, with diversified layouts opening up growth space. 4) Capacity side: Under the impact of tariffs, the supply chain pattern is being reshaped, with overseas production transfer capacity being a core competitive factor, mainly concentrated in countries such as Vietnam and Thailand. TECHTRONIC IND and GreatStar have laid out early and have basically achieved full coverage of exposure to the U.S.; CHERVON is accelerating its overseas production transfer, with new capacity in Vietnam steadily released to strengthen risk resistance. **Risk Warning:** Macroeconomic fluctuation risk, tariff policy fluctuation risk, overseas supply chain fluctuation risk, raw material price fluctuation risk, exchange rate fluctuation risk ### 相關股票 - [Harvest SSE STAR Industrial Machinery ETF (588850.CN)](https://longbridge.com/zh-HK/quote/588850.CN.md) - [Guotai CSI Subdivision Mechanical Equipment Industry Theme ETF (516960.CN)](https://longbridge.com/zh-HK/quote/516960.CN.md) - [CHERVON (02285.HK)](https://longbridge.com/zh-HK/quote/02285.HK.md) - [CHUANGXIN IND (02788.HK)](https://longbridge.com/zh-HK/quote/02788.HK.md) - [GF Fund CSI Construction Machinery Theme ETF (560280.CN)](https://longbridge.com/zh-HK/quote/560280.CN.md) - [GreatStar (002444.CN)](https://longbridge.com/zh-HK/quote/002444.CN.md) - [Dacheng CSI Construction Machinery Theme ETF (159542.CN)](https://longbridge.com/zh-HK/quote/159542.CN.md) - [Guotai CSI Machine Tool ETF (159667.CN)](https://longbridge.com/zh-HK/quote/159667.CN.md) - [TECHTRONIC IND (00669.HK)](https://longbridge.com/zh-HK/quote/00669.HK.md) - [ALTON ELECTRICAL (301187.CN)](https://longbridge.com/zh-HK/quote/301187.CN.md) ## 相關資訊與研究 - [Chuangxin Industries Announces 2025 Annual Results](https://longbridge.com/zh-HK/news/279538898.md) - [Chuangxin Industries Declares HKD 0.77 Final Dividend for 2025](https://longbridge.com/zh-HK/news/279491680.md) - [Sany Heavy Equipment International sees FY unaudited net profit RMB1,600 mln-RMB1,850 mln](https://longbridge.com/zh-HK/news/279965419.md) - [Shanghai XNG Sets March 31 Board Meeting to Approve 2025 Results and Consider Dividend](https://longbridge.com/zh-HK/news/279415013.md) - [Techtronic Industries Reshapes Board and Committee Roles for 2026](https://longbridge.com/zh-HK/news/278374972.md)