tiprankstipranks
Trending News
More News >
Techtronic Industries (HK:0669)
:0669
Advertisement

Techtronic Industries (0669) AI Stock Analysis

Compare
6 Followers

Top Page

HK:0669

Techtronic Industries

(OTC:0669)

Rating:80Outperform
Price Target:
HK$114.00
▲(20.63% Upside)
Techtronic Industries demonstrates robust financial performance with strong revenue and profit growth, supported by efficient cost management and cash flow generation. Earnings call insights reinforce a positive outlook for 2025. However, technical analysis shows overbought signals, and valuation is reasonable but not undervalued. Potential tariff impacts and division-specific challenges are risks to consider.
Positive Factors
Earnings Forecast
There is upside risk to consensus' earnings forecasts for TTI in 2024 and 2025, given unchanged projections in the past three months.
Market Position
Techtronic Industries remains well positioned to capitalize on the continued shift to cordless tools.
Revenue Growth
Stronger 2H24 revenue growth helped by resilient pro demand and better OPM expansion and lower commodity inflation/shipping cost burden.
Negative Factors
CEO Transition Volatility
Overall, the report is viewed positively for shares, given continued solid growth/margin improvement and recent volatility associated with CEO transition.
Market Estimate Comparison
Power Equipment revenue was +7% yoy, just above the +6% yoy estimate.
Price Target Risk
Up/downside to price target is 9%.

Techtronic Industries (0669) vs. iShares MSCI Hong Kong ETF (EWH)

Techtronic Industries Business Overview & Revenue Model

Company DescriptionTechtronic Industries Company Limited engages in the design, manufacture, and marketing of power tools, outdoor power equipment, and floorcare and cleaning products worldwide. It offers power tools, power tool accessories, outdoor products, and outdoor product accessories for consumer, trade, professional, and industrial users under the MILWAUKEE, EMPIRE, AEG, RYOBI, HOMELITE, and HART brands, as well as to original equipment manufacturer (OEM) customers. The company provides floorcare products and accessories under the HOOVER, DIRT DEVIL, VAX, and ORECK brands, as well as to OEM customers. It serves Do-It-Yourself, professional, and industrial users in the home improvement, repair, maintenance, construction, and infrastructure industries. The company was founded in 1985 and is based in Kwai Chung, Hong Kong.
How the Company Makes MoneyTechtronic Industries generates revenue through the sale of its diverse range of power tools, hand tools, outdoor power equipment, and floorcare products under its various brands. The company's revenue model is primarily based on manufacturing and distributing these products globally through major retailers, distributors, and direct sales channels. Key revenue streams include the professional market segment, which demands durable and high-performance tools, and the consumer market segment, which seeks more affordable, user-friendly solutions. TTI's partnerships with major retailers, such as Home Depot and Lowe's, as well as its strategic focus on product innovation and brand development, play a significant role in driving its earnings. Additionally, the company invests heavily in research and development to maintain its competitive edge and expand its market share.

Techtronic Industries Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q4-2024)
|
% Change Since: -0.37%|
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant revenue and profit growth, especially in the Milwaukee Power Tools division. The company also achieved a significant reduction in net finance costs and increased dividends. However, challenges remain in the Floorcare & Cleaning division, and there are concerns about potential tariffs affecting future operations.
Q4-2024 Updates
Positive Updates
Strong Financial Performance
TTI Group reported revenue growth of 6.5%, net profit increase of 14.9%, and generated $1.6 billion in free cash flow for 2024. Gross profit increased by $476 million to $5.9 billion, with a margin increase of 85 basis points to 40.3%.
Milwaukee Power Tools Growth
Milwaukee Power Tools achieved a sales growth of 11.6% in local currencies and continued to extend its market leadership. The division's operating profits increased by 12.1%.
Reduction in Net Finance Costs
Net finance costs were reduced by 32%, saving over $25 million, due to disciplined working capital management and paying down high-cost debts.
Dividend Increase
The board recommended a final dividend of HK$1.18 per share, a 20.4% increase compared to the previous year. The total dividend for the year 2024 will be HK$2.26 per share, representing a payout ratio of 47.5%.
Geographic Expansion and Growth
All regions delivered outstanding growth, with North America growing by 5.5%, Europe by over 10%, and the rest of the world, led by Australia, by 12.5% in local currencies.
Negative Updates
Floorcare & Cleaning Division Revenue Decline
Floorcare & Cleaning division's revenue was down 4.5% in local currency, although operating profits increased by 4.73% due to improved profitability and exiting non-performing SKUs.
Concerns Over Future Tariffs
Uncertainty surrounding potential tariffs, especially if a 25% tariff is imposed on Vietnam, could impact manufacturing and pricing strategies.
Inventory and Trade Receivables
Trade receivables increased by 2 days to 47 days due to higher sales in Q4 2024, and inventory days improved by 7 days to 102 days.
Company Guidance
In the TTI Group's 2024 annual results announcement, the company reported an impressive fiscal year with revenue growing by 6.5% to $14.6 billion and net profit increasing by 14.9% to $1.12 billion. The group generated $1.6 billion in free cash flow, marking a 23% increase from the previous year, leading to a 142% conversion of net profits. Milwaukee Power Tools achieved 11.6% sales growth in local currencies, while RYOBI Power Tools saw a 6.7% increase. The company's gross profit rose by $476 million to $5.9 billion, with gross margins improving by 85 basis points to 40.3%. Earnings per share climbed by 15.1% to $0.6143, and the dividend payout ratio increased to 47.5%. TTI's strategy focused on innovation, market leadership, and global manufacturing footprint expansion, contributing to significant operational improvements, including a 32% reduction in net finance costs and a substantial decrease in net debt by over 95% to $45 million. The company anticipates continued growth and maintains a positive outlook for 2025, with plans to further invest in R&D and leverage its strong balance sheet for future opportunities.

Techtronic Industries Financial Statement Overview

Summary
Techtronic Industries shows strong revenue growth and efficient cost management, with robust cash flow generation. The balance sheet indicates decreasing leverage, but there is room for improvement in operational profitability and return on equity. The absence of EBIT in the latest year is a concern.
Income Statement
85
Very Positive
Techtronic Industries has demonstrated robust revenue growth over the years, with a solid revenue growth rate of approximately 6.5% in 2024. The company maintains a healthy gross profit margin of 40.3% in 2024, reflecting efficient cost management. However, the EBIT margin is notably absent in the latest report, which is a concern for assessing operational profitability. The EBITDA margin remains strong at 13.7%, indicating good earnings before depreciation and amortization.
Balance Sheet
78
Positive
The company's balance sheet is stable with an improving equity position, as stockholders' equity increases to $6.36 billion in 2024. The debt-to-equity ratio decreased to 0.33, indicating prudent leverage management. The equity ratio is 49.4%, reflecting a solid capital structure. However, the return on equity (ROE) of 17.6% suggests room for improvement in generating returns from shareholders' investments.
Cash Flow
90
Very Positive
Techtronic demonstrates strong cash flow performance with a significant increase in free cash flow by 28.6% in 2024. The operating cash flow to net income ratio is 2.02, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 1.41, showcasing efficient capital allocation and capacity to reinvest in the business or return value to shareholders.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.62B13.73B13.25B13.20B9.81B
Gross Profit5.90B5.42B5.21B5.12B3.75B
EBITDA2.01B1.78B1.44B1.38B1.03B
Net Income1.12B976.34M1.08B1.10B800.76M
Balance Sheet
Total Assets12.89B12.40B13.32B13.01B9.39B
Cash, Cash Equivalents and Short-Term Investments1.25B1.17B1.67B2.04B1.69B
Total Debt2.11B2.84B3.86B3.84B1.70B
Total Liabilities6.53B6.65B8.11B8.29B5.49B
Stockholders Equity6.36B5.75B5.21B4.72B3.90B
Cash Flow
Free Cash Flow1.58B1.23B652.11M-847.48M700.14M
Operating Cash Flow2.27B2.10B1.23B-100.94M1.16B
Investing Cash Flow-606.24M-778.78M-919.23M-1.02B-580.27M
Financing Cash Flow-1.33B-1.80B-712.74M1.47B-498.09M

Techtronic Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price94.50
Price Trends
50DMA
90.06
Positive
100DMA
88.34
Positive
200DMA
96.96
Negative
Market Momentum
MACD
2.00
Negative
RSI
57.98
Neutral
STOCH
35.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0669, the sentiment is Positive. The current price of 94.5 is above the 20-day moving average (MA) of 92.24, above the 50-day MA of 90.06, and below the 200-day MA of 96.96, indicating a neutral trend. The MACD of 2.00 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0669.

Techtronic Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$173.11B19.7618.59%2.39%6.13%14.88%
64
Neutral
$10.60B16.525.71%2.12%2.78%-25.85%
$4.29B12.0415.54%2.90%
$8.38B12.126.96%5.37%
83
Outperform
HK$58.78B7.2612.46%5.34%5.80%5.59%
76
Outperform
HK$92.47B13.3912.01%7.77%1079.57%
69
Neutral
HK$9.92B11.1811.29%3.16%28.57%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0669
Techtronic Industries
94.50
-0.98
-1.02%
HAIIF
Haitian International Holdings
3.23
0.09
2.87%
ZLIOF
Zoomlion Heavy Industry Science & Technology Co
0.79
0.26
49.06%
HK:2285
Chervon Holdings Limited
19.41
4.66
31.59%
HK:2618
JD Logistics, Inc.
13.91
6.04
76.75%
HK:6198
Qingdao Port International Co Ltd Class H
6.42
1.03
19.11%

Techtronic Industries Corporate Events

Techtronic Industries Reports Strong First Half 2025 Performance
Aug 5, 2025

Techtronic Industries reported a robust performance for the first half of 2025, with sales increasing by 7.5% in local currency to $7.8 billion and net profit rising by 14.2% to $628 million. The company’s flagship brands, MILWAUKEE and RYOBI, contributed significantly to this growth with impressive sales increases. Operational efficiencies and strategic focus on high-margin products led to improved gross profit margins and reduced SG&A expenses. TTI’s strong financial position, highlighted by a net cash status and positive free cash flow of $468 million, positions it well for future investments and growth amidst a changing macro-economic environment.

The most recent analyst rating on (HK:0669) stock is a Buy with a HK$140.00 price target. To see the full list of analyst forecasts on Techtronic Industries stock, see the HK:0669 Stock Forecast page.

Techtronic Industries Schedules Board Meeting for Interim Results and Dividend Consideration
Jul 3, 2025

Techtronic Industries has announced that its board of directors will meet on August 5, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it could impact the company’s financial strategy and shareholder returns, reflecting its ongoing commitment to growth and value creation.

The most recent analyst rating on (HK:0669) stock is a Buy with a HK$140.00 price target. To see the full list of analyst forecasts on Techtronic Industries stock, see the HK:0669 Stock Forecast page.

Techtronic Industries Unveils New Employee Equity Incentive Plan
May 30, 2025

Techtronic Industries has announced the adoption of an Employee Equity Incentive Plan effective from May 8, 2025. This plan aims to attract and retain employees by aligning their interests with shareholders through share awards, enhancing the company’s long-term success. The plan involves purchasing existing shares from the secondary market, without issuing new shares, and includes provisions for Restricted Stock Units and Performance Share Units. This strategic move is expected to strengthen employee engagement and contribute to the company’s growth.

The most recent analyst rating on (HK:0669) stock is a Buy with a HK$140.00 price target. To see the full list of analyst forecasts on Techtronic Industries stock, see the HK:0669 Stock Forecast page.

Techtronic Industries Secures Shareholder Approval at AGM
May 9, 2025

Techtronic Industries held its Annual General Meeting on May 9, 2025, where all proposed resolutions were passed, including the approval of the audited financial statements and the declaration of a final dividend. The re-election of several executive and non-executive directors was confirmed, and mandates were granted for share allotment and buyback. The amendments to the Articles of Association were also approved, reflecting strong shareholder support and potentially enhancing the company’s governance framework.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025