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Techtronic Industries (HK:0669)
:0669
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Techtronic Industries (0669) AI Stock Analysis

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HK:0669

Techtronic Industries

(OTC:0669)

Rating:80Outperform
Price Target:
HK$114.00
▲(12.87% Upside)
Techtronic Industries demonstrates strong financial performance and positive earnings call sentiment, driving the overall score. Technical analysis supports a positive trend, while valuation is moderate. The absence of significant corporate events and potential macroeconomic challenges are minor considerations.
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
(Q2-2025)
|
% Change Since: 6.48%|
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance for TTI in the first half of 2025, with record results, robust growth in key segments, and improved financial metrics. However, there are challenges related to tariff uncertainties and specific market underperformance. Overall, the company demonstrates confidence in its strategy and future growth prospects.
Q2-2025 Updates
Positive Updates
Record First Half of 2025
TTI delivered a record first half of 2025 with double-digit growth in profit and free cash flow. Revenue increased by 7.1% to USD 7.83 billion, and EBIT increased by 13.3% to USD 709 million.
Strong Performance of MILWAUKEE and RYOBI
MILWAUKEE achieved an 11.9% sales growth globally, while RYOBI recorded an 8.7% growth in local currencies. RYOBI cordless has shown a 15% CAGR since 2016.
Improved Margins and Cash Flow
Gross profit increased by 8% to USD 3.16 billion with margins improved by 34 basis points to 40.3%. Free cash flow generation was USD 468 million in the first half of 2025.
Investment in R&D and Innovation
TTI increased R&D spend to 4.6% of sales and continues to focus on disruptive innovation and new product development.
Strong Balance Sheet
Shareholders' equity increased by 6.4% to USD 6.7 billion, and net current assets increased by 10.5% to USD 3.1 billion. The company is in a net cash position as of the first half of 2025.
Negative Updates
Tariff Uncertainty
The company faces uncertainties with changing tariffs, particularly impacting the production and sourcing strategies, which may affect future growth rates.
Challenges in ANZ Market
The ANZ market experienced challenges due to seasonality and specific issues affecting the outdoor and MILWAUKEE business, leading to underperformance compared to usual double-digit growth.
Increased Effective Tax Rate
The effective tax rate increased by 15% compared to the same period last year, though it remains sustainable.
Company Guidance
During the call, the company provided detailed guidance on its financial performance for the first half of 2025, highlighting several key metrics. Revenue increased by 7.1% to USD 7.83 billion, with MILWAUKEE and RYOBI driving global sales growth of 11.9% and 8.7%, respectively. Gross profit rose by 8% to USD 3.16 billion, with margins improving by 34 basis points to 40.3%. EBIT grew by 13.3% to USD 709 million, and net profit increased by 14.2% to USD 628 million, with a net margin of 8%. Earnings per share also saw a rise of 14.1% to USD 0.34. The company declared an interim dividend of HKD 1.25 per share, marking a 15.7% increase. Free cash flow generation remained strong at USD 468 million. The company maintained a healthy balance sheet, with shareholders' equity growing by 6.4% to USD 6.7 billion and net current assets increasing by 10.5% to USD 3.1 billion. The effective tax rate was 7.8%, and net finance costs were reduced to 0.35% of sales. The company emphasized its commitment to strategic growth and operational efficiency, including R&D investment, while managing geopolitical and economic challenges.

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 Price101.00
Price Trends
50DMA
93.22
Positive
100DMA
89.04
Positive
200DMA
95.88
Positive
Market Momentum
MACD
2.43
Positive
RSI
58.11
Neutral
STOCH
65.10
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 101 is above the 20-day moving average (MA) of 98.93, above the 50-day MA of 93.22, and above the 200-day MA of 95.88, indicating a bullish trend. The MACD of 2.43 indicates Positive momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 65.10 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
$188.10B20.2918.59%2.20%6.51%13.97%
64
Neutral
$10.95B16.378.81%1.96%2.68%-15.33%
$4.62B11.3715.98%5.81%
$8.92B13.296.96%5.03%
83
Outperform
HK$57.77B7.4512.46%5.25%5.80%5.59%
70
Outperform
HK$91.97B12.7212.40%11.05%81.01%
69
Neutral
HK$12.64B14.1411.29%7.34%28.57%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0669
Techtronic Industries
101.00
-1.32
-1.29%
HAIIF
Haitian International Holdings
3.23
0.09
2.87%
ZLIOF
Zoomlion Heavy Industry Science & Technology Co
0.83
0.33
66.00%
HK:2285
Chervon Holdings Limited
23.36
6.52
38.72%
HK:2618
JD Logistics, Inc.
13.29
4.08
44.30%
HK:6198
Qingdao Port International Co Ltd Class H
6.55
1.04
18.87%

Techtronic Industries Corporate Events

Techtronic Industries Declares Interim Dividend for 2025
Aug 5, 2025

Techtronic Industries announced an interim dividend of HKD 1.25 per share for the six months ending June 30, 2025. The dividend will be paid on September 19, 2025, with the ex-dividend date set for September 2, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders and indicates a stable financial performance during the reporting period.

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 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: Aug 06, 2025