The Zhitong Finance App learned that Chuangke Industrial (00669) rose nearly 3%. As of press release, it had risen 2.85% to HK$88.5, with a turnover of HK$256 million.

According to the news, J.P. Morgan Chase released a report saying that Chuangke Industrial's stock price performance has taken a turn since the fourth quarter of last year. It has risen 35% since mid-October last year, and the Hang Seng Index has fallen 4% compared to the same period. I believe this is due to the effects of investors already watching short selling reports, poor profit standards, downward guidance, inventory removal, and interest rate hikes. Looking ahead to 2024, the company's management revealed that sales growth is picking up again. Milwaukee's sales increased by more than 10% in the second half of 2023, and sales of professional tool products are expected to grow at an average compound annual rate of 12% to 15% in the 2024-2026 fiscal year.

The bank expects that with the support of technology-led product innovation and a higher gross margin product portfolio, I&T's EBIT margin is expected to rise to about 10% by 2026. It is expected that the growth momentum will return this year and the operating conditions are in line with market expectations, then there is room for the stock price to rise. The target price will rise from HK$96 to HK$107. The compound annual profit growth rate for the 2024-2025 fiscal year is expected to accelerate again to 18%, maintaining the “gain” rating.