Techtronic Ind (00669) fell more than 3% during the trading session. At the time of writing, the stock was down 2.7% to HK$104.7, with a turnover of HK$176 million. According to a research note from CLSA, the company's flagship brands, Milwaukee and Ryobi, collectively achieved mid-to-high single-digit growth. However, other business segments may continue to face headwinds due to restructuring and macroeconomic uncertainties. Approximately 15% of Milwaukee's sales growth came from the data center sector. The report expressed confidence that, given the brand's leading position in mechanical, electrical, and plumbing sectors, it could achieve double-digit growth in the long term, supported by strong non-residential end-market demand. CLSA lowered its earnings forecasts for Techtronic Ind by 1.1% to 3.4% for the years 2026 to 2028, citing adjustments in lower-margin businesses. Nevertheless, following the company's announcement of the cancellation of 300,000 repurchased shares and a planned US$500 million buyback over the next 18 months, the target price-to-earnings ratio was slightly raised from 19.5x to 19.8x, reflecting investor approval of the buyback initiative amid ongoing macroeconomic uncertainty.
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