Techtronic (0669.HK): Positive Read-Thru from HD 2QFY26 Results and Outlook

Research evidence excerpt

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18 Aug 2026 12:32:13 ET │ 17 pages

Techtronic (0669.HK)

Positive Read-Thru from HD 2QFY26 Results and Outlook

CITI'S TAKE

Home Depot, TTI's largest customer, posted a 2Q results beat. Adjusted

EPS of $4.92 topped VA consensus of $4.73. HD (covered by Steven

Zaccone) received IEEPA tariff refunds totaling US$730m, of which

US$685m was used to reduce COGS. As the refunds are used to offset

unplanned and rising cost pressures throughout the year, this should

mitigate pricing pressure on strategic suppliers like Techtronic. HD also

improved consumer fulfillment through speed of delivery, which should

enable TTI to win more share at HD given its stronger logistics

management compared with major rivals, as seen from TTI's swift supplychain management response during COVID. We are more confident in TTI

with a faster earnings growth outlook of 32.5% in 2H26E vs 17.5% in 1H26

(Figure 4). We prefer TTI > Great Star > Chervon > SWK among global

power tools players.

HD FY26 guidance reiteration implies revenue growth upside for TTI — HD guided

sales +2.5–4.5% and SSSG of flat to +2% in FY26. The 3.5% midpoint of the sales

growth guidance reflects the GMS acquisition, new stores, new branches, and tuckin acquisitions. We model TTI sales growth of 7.1% (vs VA cons 6.7%) this year,

outperforming HD's sales growth by 3.9% (or 3.2ppt per VA cons). This is slower than

TTI's 5–6% p.a. relative outperformance average over HD over the past decades. We

thus see TTI revenue growth upside in 2026.

Buy

Price (18 Aug 26 16:10)

Target price

Expected share price

return

Expected dividend yield

Expected total return

Market Cap

HK$141.30

HK$168.00

18.9%

2.3%

21.2%

HK$258,263M

US$32,923M

Eric LauAC

Alice Cai

Andy Li

Overall SSSG outpaced US SSSG slightly in 2Q — At the HD analyst call,

management said overall SSSG slightly outpaced US SSSG in 2Q. Overall SSSG was

1.7%, with the monthly split of 1.2% in May, 1.5% in June, and 2.3% in July showing an

accelerating trend. This was ahead of US SSSG of 1.3% for the quarter with a

monthly split of 0.5%, 1.2%, and 2.2%, respectively. HD noted overall

SSSG outpaced US SSSG mainly due to stronger demand in Canada and Mexico. In

…