TECHTRONIC INDUSTRIES(00669.HK):MILWAUKEE'S RESILIENCE CAN ONLY DAMPEN THE EFFECTS OF DECLINING CONSTRUCTION INVESTMENT "REDUCE"
TECHTRONIC INDUSTRIES(00669.HK):MILWAUKEE'S RESILIENCE CAN ONLY DAMPEN THE EFFECTS OF DECLINING CONSTRUCTION INVESTMENT "REDUCE"
The Company's global performance was well balanced across geographies. The Company's sales in North America increased 5.6% YoY in local currency. Sales in Europe grew 7.9 % YoY in local currency. Sales in rest of world, featuring Australia and Asia, delivered 13.0% growth YoY in local currency.We downgrade to "Reduce", and decrease our target price to HK$91.60. We decrease Techtronic Industries' (the "Company") 2024-2026 shareholders' net profit forecasts to US$1,020 mn (-6.0%), US$1,091 mn (-7.6%), and US$1,210 mn (-3.9%), respectively. We forecast earnings per share in 2024-2026 to be US$0.558 (-5.5%), US$0.595 (-7.5%), and US$0.659 (-3.8%), respectively. Our target price represents 21.0x, 19.7x, and 17.8x 2024-2026 PE ratio, respectively, and 3.4x 2024 PB ratio. We believe that the stock has fully priced in the resilience of the Milwaukee power tool business against the decline in U.S. construction industry investment, therefore we reduce our TP to HK$91.60.
我們將評級調降爲"Reduce"，並將目標價下調至HK$91.60。我們將德沃爾工業（下稱"公司"）2024-2026年股東淨利潤預測分別下調至1,020萬美元（-6.0%）、1,091萬美元（-7.6%）和1,210萬美元（-3.9%）。我們預測2024-2026年每股收益分別爲0.558美元（-5.5%）、0.595美元（-7.5%）和0.659美元（-3.8%）。我們的目標價相當於2024-2026年市盈率分別爲21.0倍、19.7倍和17.8倍，以及2024年市淨率3.4倍。我們相信股票已充分反映了密爾沃基電動工具業務對美國建築行業投資下滑的彈性，因此我們將目標價下調至HK$91.60。
Interim earnings call focuses mostly on developments in Milwaukee business, emphasizing the resilience of its high-end power equipment in recessions. In 1H2024, the Company's flagship Milwaukee business's revenue increased by 11.2% YoY in local currency. The Company plans on integrating state-of-the-art technology into its products such as motion tracking, posture analysis, data encryption, and interconnectivity between devices, thereby making its products safer to use and better fitting the needs of its corporate customers. The Company expects its gross margin to continue to increase as it leverages trends in AI, but will continue to reinvest its proceeds into R&D to improve its products.
中期業績會主要關注密爾沃基業務的發展，並強調其高端電動設備在經濟衰退中的彈性。2024年上半年，公司旗艦密爾沃基業務在本地貨幣計量下，營業收入同比增長11.2%。公司計劃將最先進的技術整合到其產品中，例如動態跟蹤、姿勢分析、數據加密以及設備間的互聯性，從而使其產品更安全、更適應其企業客戶的需求。公司預計其毛利率將繼續增長，以利用人工智能的趨勢，但將繼續將銷售收益用於研發，改進產品。
The Company has been consistently reducing inventory and debt in preparation for lower sales growth in the US construction industry. The Company has increased its working capital efficiency, with working capital as a percentage of sales increasing 4.1 ppts YoY to 18.7%. In June, the residential and non-residential construction investment posted YoY growth rates of 7.3% and 5.3%, respectively, down from 8.1% and 6.4% in May. The Company's revenue in the US market is unlikely to increase in 2H2024.
公司一直在準備美國建築行業銷售增長放緩，因此持續減少庫存和債務。公司提高了其資本運作效率，銷售額佔營業額的比例同比增長4.1個百分點，達到18.7%。6月，住宅和非住宅施工投資的同比增長率分別爲7.3%和5.3%，較5月的8.1%和6.4%有所下降。公司在美國市場的營業收入不太可能在2024年下半年增加。
The Company's global performance was well balanced across geographies. The Company's sales in North America increased 5.6% YoY in local currency. Sales in Europe grew 7.9 % YoY in local currency. Sales in rest of world, featuring Australia and Asia, delivered 13.0% growth YoY in local currency.
公司的全球業績在地理區域上保持平衡。公司在北美的銷售額本地貨幣計算同比增長5.6％。歐洲的銷售額本地貨幣計算增長7.9％。澳大利亞和亞洲等其他地區的銷售額本地貨幣計算同比增長13.0％。
Risks: Interest rate risk coming from monetary policy, geopolitical friction.
風險：來自貨幣政策和地緣政治摩擦的利率風險。
譯文內容由第三人軟體翻譯。
