The Zhitong Finance App learned that Morgan Stanley released a research report saying that it gave Chuangke Industrial (00669) an “increase” rating. The results for the second half of last year were better than market expectations. Improved revenue growth supported performance. The basic factors have bottomed out. The outlook is positive. The target price was raised from HK$95 to HK$108.

According to the report, the company expects medium unit revenue growth this year. Among them, the Milwaukee business will have low double-digit growth, while the consumer business category will grow steadily. According to Damo's supply chain survey, orders from I&T suppliers have increased positively since the third quarter of last year, reflecting some demand to replenish inventory.

Chuangke Industrial pointed out that with reduced promotion activities and improved product portfolios this year, gross margin will resume an expansion trajectory. The bank estimates that the company's operating profit margin will expand from 8.1% last year to 8.6%, and expects profit growth of 16% this year and 23% next year. Due to the diversification of innovation and technology production, the position is better than that of peers in terms of tariff risk.