TECHTRONIC INDUSTRIES(00669.HK):STOCK DECLINE UNWARRANTED NEW CEO TO CONTINUE OLD STRATEGY "ACCUMULATE"
TECHTRONIC INDUSTRIES(00669.HK):STOCK DECLINE UNWARRANTED NEW CEO TO CONTINUE OLD STRATEGY "ACCUMULATE"
We maintain "Accumulate", and increase the TP to HK$101.40. We forecast Techtronic Industries' (the "Company") shareholders' net profit in 2024-2026 to be US$1,085 mn, US$1,181 mn, US$1,260 mn, respectively.
我們維持“累計購買”，並將目標價上調至101.40港元。我們預計科通工業（以下簡稱“公司”）2024-2026年股東淨利潤分別爲10.85億美元、11.81億美元和12.6億美元。
We forecast earnings per share in 2024-2026 to be US$0.591, US$0.643, and US$0.685, respectively. Our TP represents 22.0x/ 20.2x/ 19.0x 2024-2026 PE ratio and 3.8x 2024 PB ratio.
我們預計2024-2026年每股收益分別爲0.591美元、0.643美元和0.685美元。我們的目標價代表2024-2026市盈率分別爲22.0倍、20.2倍和19.0倍以及2024市淨率爲3.8倍。
The Company's 2023 results slightly beat our expectations. The Company's revenue in 2023 was US$13.7 billion, an increase of 3.6% YoY, in line with our expectations. The Company's net profit was US$976 million, a decrease of 9.4% YoY, but higher than our forecast of US$953 million. The earnings decrease was partially driven by significant increases in interest rates over the period. The Company has taken steps to reduce interest expenses by reducing debt, with net gearing ratio decreasing from 46.6% to 32.8% over the period. Also, due to promotional funding investments, Techtronic was able to drive sell through at its partners and reduce inventories from US$5.08 billion to US$4.10 billion. The Company believes they can streamline operations and continue to reduce inventory days on hand in 2024 and the years ahead.
公司2023年業績略超我們的預期。2023年公司營業收入爲137億美元，同比增長3.6%，符合我們的預期。公司淨利潤爲9.76億美元，同比下降9.4%，但高於我們預計的9.53億美元。淨利潤下降部分原因是該時期利率大幅上升。公司採取了降低債務的措施來減少利息支出，淨負債率從46.6%降至32.8%。此外，由於進行促銷資金投資，科通能夠推動合作伙伴的銷售並將庫存從50.8億美元降至41億美元。該公司認爲他們能夠優化運營，並在2024年及以後減少庫存週轉天數。
Milwaukee business growth accelerates. In 2023, the Company's flagship Milwaukee revenue increased by 12.7% YoY in local currency, up from 8.7% YoY in 2022. The Company's strategy of transitioning to cordless devices has allowed it to increase its products' average selling price, increasing gross margin by 14 ppts to 39.5%. The Company's further investment in new technologies such as advanced electronics, brushless motors, the Company's new cordless products offer users productivity and safety benefits that command a price premium.
密爾沃基業務增長加速。2023年，公司旗艦牌密爾沃基營收同比增長12.7%，達到當地貨幣，高於2022年的8.7%。公司向無繩設備的轉型戰略使其能夠提高產品的平均售價，將毛利率提高了14個百分點，達到39.5%。公司進一步投資於新技術，如先進電子設備、無刷電機，更重要的是公司的新無繩產品爲用戶提供生產力和安全性方面的效益，可以獲得價格溢價。
Investments in manufacturing in Vietnam, Mexico and USA. Capex expenditure in 2023 was US$502 million, with much of the investment used to expand manufacturing facilities in Vietnam, Mexico and the United States.
對越南、墨西哥和美國的製造業投資。2023年資本支出爲5.02億美元，其中很大一部分用於擴大越南、墨西哥和美國的製造工廠。
Diversification of manufacturing facilities allows the Company to mitigate supply chain risk amidst the global trend of decoupling.
製造業多樣化讓公司能夠在全球分合趨勢中規避供應鏈風險。
Company veteran Steven Richman to replace CEO Joseph Galli Jr. On 20 May 2024, Steven Galli ended his 16 year tenure as Techtronic's CEO to be replaced by Steven Richman, formerly president of the Company's flagship Milwaukee Tool business for 17 years. Richman also has experience working at Techtronic's competitors, holding key management positions at Black & Decker, Skil and Bosch Power Tools for over five years respectively.
公司老將史蒂文·裏奇曼將取代CEO約瑟夫·蓋爾。2024年5月20日，史蒂文·蓋爾結束了16年的科通工業CEO任期，由17年擔任公司旗艦密爾沃基工具業務總裁的史蒂文·裏奇曼接任。裏奇曼還擁有在科通工業競爭對手公司Black & Decker、Skil和Bosch Power Tools任職五年的管理經驗。
Risks: Company management may not perform as well as expected, lower demand in US and European housing markets.
風險：公司管理可能不如預期，美國和歐洲房地產市場需求下降。
譯文內容由第三人軟體翻譯。