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2026-06-26 12:22:55 JPM issued a report stating that TECHTRONIC IND (00669.HK)'s data center narrative is gaining market attention, and its valuation re-rating cycle has only just begun. The broker raised its TP for TECHTRONIC IND to HKD179 from HKD176 and reiterated an Overweight rating. The broker noted that discussions over the past quarter with the president of Milwaukee Tool, a subsidiary of TECHTRONIC IND, as well as with the company癒礎s investor relations manager, have catalyzed more active investor engagement. The market remains overly focused on the traditional framework of 癒禮US housing + Home Depot,癒穡 while overlooking the profit growth potential from artificial intelligence data centers (AIDC), power grid and non-residential workflow businesses. JPM expects the company癒礎s upcoming 1H26 results to serve as a key validation point for its 癒禮portfolio-driven profit compound growth癒穡 thesis. It forecasts 1H26 sales of USD8.1 billion and profit of USD700 million, representing YoY growth of 4% and 10%, respectively. Management is expected to provide more detailed disclosure on its data center business, which would help reduce the modeling discount applied by the market. Currently, the AIDC business accounts for about 10% of group revenue and around 16% of Milwaukee brand revenue, and recorded growth of 20% to 25% in 2025, significantly outpacing the group average. JPM maintained its earnings forecasts for 2026 to 2027 largely unchanged and raised its 2028 earnings forecast by 4%. Its earnings forecasts for 2026 to 2028 are about 5% above market consensus, reflecting that the re-rating has only just begun and that long-term earnings upside remains substantial. The broker added that, due to the cumulative effect of workflow adoption, the time required for contractor standardization, and the scaling of recurring accessories businesses, greater earnings growth potential is likely to be further unlocked in 2028 and beyond. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |