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Techtronic Industries (HK:0669)
:0669

Techtronic Industries (0669) AI Stock Analysis

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HK

Techtronic Industries

(OTC:0669)

Rating:80Outperform
Price Target:
HK$101.00
▲(14.97%Upside)
Techtronic Industries scores well due to strong financial performance and positive earnings call outcomes, including revenue and profit growth. Technical analysis suggests stability with potential for upward movement, while valuation is reasonable but not exceptionally attractive. The absence of new corporate events and some operational challenges slightly temper the overall score.
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 primarily through the design, manufacturing, and sale of power tools, accessories, outdoor power equipment, and floor care products. The company leverages its strong brand portfolio, including Milwaukee, Ryobi, and AEG, to capture market share across various customer segments, from DIY enthusiasts to professionals in construction and maintenance. TTI's revenue streams include direct sales through retail partners, distributors, and e-commerce platforms. The company also benefits from strategic partnerships with major retailers which facilitate broad distribution and market reach. Additionally, TTI invests heavily in innovation and product development, ensuring a continuous pipeline of new and improved products that drive sales and market competitiveness.

Techtronic Industries Earnings Call Summary

Earnings Call Date:Mar 04, 2025
(Q4-2024)
|
% Change Since: -20.13%|
Next Earnings Date:Aug 06, 2025
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
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
14.16B13.73B13.25B13.20B9.81B7.67B
Gross Profit
5.64B5.42B5.21B5.12B3.75B2.89B
EBIT
1.18B1.13B1.19B1.18B857.09M662.73M
EBITDA
1.50B1.78B1.44B1.38B1.03B818.12M
Net Income Common Stockholders
1.05B976.34M1.08B1.10B800.76M614.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
979.35M1.17B1.67B2.04B1.69B1.61B
Total Assets
12.40B12.40B13.32B13.01B9.39B7.70B
Total Debt
2.84B2.84B3.86B3.84B1.70B1.73B
Net Debt
1.89B1.89B2.43B1.96B165.97M313.56M
Total Liabilities
6.65B6.65B8.11B8.29B5.49B4.30B
Stockholders Equity
5.75B5.75B5.21B4.72B3.90B3.39B
Cash FlowFree Cash Flow
1.79B1.23B652.11M-847.48M700.14M267.67M
Operating Cash Flow
2.19B2.10B1.23B-100.94M1.16B724.27M
Investing Cash Flow
-647.64M-778.78M-919.23M-1.02B-580.27M-568.49M
Financing Cash Flow
-1.80B-1.80B-712.74M1.47B-498.09M162.76M

Techtronic Industries Technical Analysis

Technical Analysis Sentiment
Negative
Last Price87.85
Price Trends
50DMA
85.74
Positive
100DMA
93.98
Negative
200DMA
100.35
Negative
Market Momentum
MACD
1.51
Positive
RSI
50.00
Neutral
STOCH
32.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0669, the sentiment is Negative. The current price of 87.85 is below the 20-day moving average (MA) of 88.87, above the 50-day MA of 85.74, and below the 200-day MA of 100.35, indicating a neutral trend. The MACD of 1.51 indicates Positive momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 32.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0669.

Techtronic Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$166.57B18.3318.52%2.46%6.13%14.88%
65
Neutral
$4.46B12.185.23%249.77%4.11%-12.28%
$155.42B23.2223.91%0.88%
$11.18B16.9313.20%4.42%
$5.05B10.818.59%4.55%
$7.22B9.048.13%5.23%
$10.96B12.4718.17%4.14%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0669
Techtronic Industries
87.85
-5.87
-6.26%
BYDDF
BYD Co
49.55
20.33
69.58%
CHJTF
CSPC Pharmaceutical Group
0.87
0.02
2.35%
CPWIF
China Power International Development
0.41
-0.07
-14.58%
DNGFF
Dongfang Electric
1.28
-0.37
-22.42%
SZHIF
Shenzhou International Group Holdings
7.19
-2.87
-28.53%

Techtronic Industries Corporate Events

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.

Techtronic Industries Grants Share Options and Awards to Employee
Apr 24, 2025

Techtronic Industries has announced the grant of 150,000 share options and 250,000 share awards to an employee, effective April 24, 2025. These grants are part of the company’s incentive schemes to align employee interests with company goals, with options vesting over three years and subject to clawback provisions in cases of financial misstatements or misconduct.

Techtronic Industries Grants Share Options to Directors
Apr 16, 2025

Techtronic Industries announced the grant of 1,375,000 share options to certain directors, including executive and independent non-executive directors, as part of its Share Option Scheme. The options, which are time-vesting and subject to a clawback mechanism, aim to align the interests of the grantees with the company’s long-term growth objectives. This move is expected to strengthen the company’s management and operational capabilities by recognizing the contributions and potential of its key personnel.

Techtronic Industries Announces Key Board Appointments
Mar 31, 2025

Techtronic Industries has announced new appointments to its board committees, effective March 31, 2025. The changes include new members for the Nomination and Remuneration Committees and the appointment of Mr. Robert Hinman Getz as the Lead Independent Non-executive Director. These appointments are expected to strengthen the company’s governance and strategic oversight, potentially enhancing its market position and stakeholder confidence.

Techtronic Industries Updates Remuneration Committee Terms
Mar 31, 2025

Techtronic Industries has updated the terms of reference for its Remuneration Committee, which is responsible for developing and administering policies on the remuneration of directors and senior management. The committee aims to ensure fair and transparent procedures and oversees the company’s human resources strategy, with a majority of its members being independent non-executive directors.

Techtronic Industries Updates Nomination Committee Terms
Mar 31, 2025

Techtronic Industries has updated the terms of reference for its Nomination Committee, which is responsible for ensuring a fair and transparent process for Board appointments. The committee, led by Mr. Horst Julius Pudwill, aims to identify suitable candidates for the Board and shareholders, with a majority of its members being independent non-executive directors.

Techtronic Industries Schedules 2025 Annual General Meeting
Mar 27, 2025

Techtronic Industries announced its Annual General Meeting to be held on May 9, 2025, where shareholders will discuss financial statements, declare dividends, re-elect directors, and appoint auditors. The meeting will also consider resolutions to authorize directors to allot and issue additional shares, with specific conditions on pricing and share limits, reflecting the company’s strategic focus on growth and shareholder value.

Techtronic Industries Proposes Amendments to Articles of Association
Mar 5, 2025

Techtronic Industries Company Limited, a Hong Kong-based company, has announced proposed amendments to its Articles of Association. These amendments, to be discussed at the upcoming Annual General Meeting in May 2025, aim to align with new legal and regulatory requirements, allow for hybrid or electronic general meetings, and remove the age limit for directors, among other changes. The proposed changes are subject to shareholder approval and are intended to enhance the company’s governance and operational flexibility.

Techtronic Industries Achieves Record Sales and Cash Flow in 2024
Mar 4, 2025

Techtronic Industries reported strong financial performance for 2024, with a 6.8% increase in sales to US$14.6 billion and record free cash flow of US$1.6 billion. The company’s flagship MILWAUKEE brand grew by 11.6%, while RYOBI saw a 6.4% increase. TTI’s global operations experienced growth across all regions, with notable improvements in gross profit margin and EBIT. The company also achieved significant reductions in net debt and inventory days, reflecting its successful cost-saving and supply chain initiatives. These results underscore TTI’s robust market positioning and operational efficiency.

Techtronic Industries Declares Final Dividend for 2024
Mar 4, 2025

Techtronic Industries announced a final ordinary dividend of HKD 1.18 per share for the financial year ending December 31, 2024. The dividend is set to be paid on June 27, 2025, following shareholder approval on May 9, 2025. This announcement reflects the company’s robust financial performance and commitment to returning value to its shareholders, potentially strengthening its position in the market.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.