First Read Techtronic Industries: H126 preview: margins to beat; reiterating Buy

研报英文原文证据摘录

First Read Techtronic Industries: H126 preview: margins to beat; reiterating Buy

% ch Cons.

drive continued robust growth for this US$10bn+ segment. On GPM side, we now 12/26E 0.78 0.79 1 0.77

expect 85bp (vs. 80bp previously) GPM expansion YoY to 41.1% in H126E, and forecast 12/27E 0.90 0.92 2 0.89

9.6% OPM (vs. 9.4% previously), reflecting lowered tariff. We expect H126 net profit to 12/28E 1.02 1.03 2 1.02

grow 17.0% YoY to US$735m.

Sky Hong

Analyst

H226 outlook: topline to accelerate and margins to further thrive

sky.hong@ubs.com

We forecast topline growth to accelerate to 7.8% in H226, given the favourable base on +86-21-3866 8856

one-time sales suspension for Milwaukee and exit of Hart in H225. Our latest discussions

Mandy Liu

with management also revealed that POS remained steady while key verticals like AIDC

continued to be robust lately. Management also remained confident that such solid S1460521110001

trend is highly likely to carry on in H226. Together with multiple margin-accretive growth mandy.liu@ubs.com

drivers and potential tariff refund, we expect NP to grow 26.3% YoY in H226 (vs. 21.9% +86-21-3866 8831

of consensus).

Gus Huang, CFA

Valuation: maintain Buy, lift PT from HK$145.00 to HK$148.00 S1460522090006

We lifted our H126/2026E NP forecasts by 2.1%/1.4%, mainly reflecting our stronger gus.huang@ubs.com

GPM/OPM expectations. The stock is trading at 18x 2027E PE, in line with its 10-year +86-21-3866 8541

average of 18x PE vs. NP CAGR of 13%. With earnings growth accelerating to 21% in

2026E and 16% in 2027E on a much larger earnings base, we think current valuation is

not demanding. Our DCF-derived price target of HK$148.00 (WACC unchanged at

7.1%) indicates a 21x 2027E PE.

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E