Techtronic Industries (0669): The re-rating cycle for TTI‘s data center story is just beginning, raising PT; 1H26 preview

研报英文原文证据摘录

Techtronic Industries (0669): The re-rating cycle for TTI‘s data center story is just beginning, raising PT; 1H26 preview

ecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

into power-and-cooling shells, with 60-85% of construction work tied to

mechanical, electrical, and plumbing trades – the core workflow where Key Changes (FYE Dec)

Milwaukee dominates. The market is beginning to recognize that TTI’s Prev Cur Δ

exposure is not about selling into hyperscalers directly, but about being the Adj. EPS - 26E ($) 0.81 0.80 -0.6%

workflow standard for contractors and engineers building and maintaining Adj. EPS - 27E ($) 0.92 0.93 0.8%

the power and cooling backbone of data centers. This reframing is helping

Style Exposure investors move beyond the “US housing + Home Depot” lens and see the

durability and scale of the non-residential runway. The narrative is further

supported by Quanta Services’ record $48.5B backlog and $565B TAM for

data centers through 2030, with Milwaukee tools increasingly “specified” by

leading contractors for construction and maintenance.

• How does the AIDC business underpin the re-rating, and what is the

growth and margin profile? The re-rating is fundamentally about the

AIDC business, which now accounts for c.10% of TTI’s group revenue and

c.16% of Milwaukee, and is growing at a 20-25% rate in 2025 – well above

the group average. We expect this growth rate to accelerate further, and the

key question for investors is how fast this segment can scale, which we will

be watching closely at the upcoming briefings. This segment is not only

expanding rapidly, but also carries a structurally higher margin profile, as

data center and grid projects demand premium, specified solutions and drive

recurring aftermarket pull-through.