Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of $7.31 billion in the first half of 2024, representing a year-on-year increase of 6.3%, and a net profit of $550 million, up 15.7% year-on-year [4][5] - The Milwaukee brand showed strong performance with a sales increase of 11.2% (in local currency), while Ryobi also experienced mid-single-digit growth [2][4] - The company is expected to benefit from a potential interest rate cut and a recovery in the U.S. real estate market, leading to strong order certainty in the second half of the year [2][4] Financial Performance Summary - Revenue for the first half of 2024: $7.31 billion, up 6.3% year-on-year - Net profit: $550 million, up 15.7% year-on-year - Gross margin: 39.9%, an increase of 0.67 percentage points year-on-year - Net profit margin: 7.5%, an increase of 0.6 percentage points year-on-year [2][4] Business Segment Performance - By business segment: - Power tools: +6.73% - Milwaukee sales: +11.2% - Ryobi sales: mid-single-digit growth - Floor care and cleaning: -0.4% [2][4] - By region: - North America: +5.69% - Europe: +8.64% - Other regions: +6.95% [2][4] Future Earnings Forecast - Revenue projections for 2024-2026 are $14.62 billion, $16.07 billion, and $17.67 billion, with year-on-year growth rates of 6.5%, 9.9%, and 10.0% respectively - Net profit projections for the same period are $1.14 billion, $1.33 billion, and $1.53 billion, with growth rates of 16.7%, 16.9%, and 14.6% respectively [6][7] Valuation Metrics - As of August 7, 2024, the price-to-earnings (P/E) ratios are projected to be 20, 17, and 15 for 2024, 2025, and 2026 respectively [6][7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][7] Core Views - The recovery of the US real estate market is expected to drive revenue acceleration, while structural optimization and efficiency improvements will enhance profit release [2] - The company maintains net profit forecasts for 2024-2026 at $1.145 billion, $1.369 billion, and $1.710 billion, respectively, corresponding to year-on-year growth rates of 17.3%, 19.5%, and 24.9% [2] - The current stock price corresponds to P/E ratios of 19.6, 16.4, and 13.2 for the years 2024, 2025, and 2026, respectively [2] Financial Performance Summary - For H1 2024, the company reported revenue of $7.132 billion, a year-on-year increase of 6.3%, driven primarily by strong performance from core brands Milwaukee (up 11.2%) and RYOBI (mid-single-digit growth) [2] - H1 2024 net profit reached $550 million, reflecting a year-on-year growth of 15.7%, outpacing revenue growth due to improved gross margins and reduced interest expenses [2] - The gross margin for H1 2024 improved to 39.94%, benefiting from a higher proportion of high-margin new products and ongoing production efficiency enhancements [2] Future Outlook - The company is entering an upcycle in the electric tools industry, with brand premium and market share expected to remain stable [2] - Anticipated interest rate cuts by the Federal Reserve in September 2024 may stimulate housing sales and renovation demand, further supporting revenue growth for Milwaukee and RYOBI in 2025-2026 [2] - The expansion of high-margin Milwaukee products and after-sales battery business is expected to drive overall gross margin improvement and accelerate net profit release [2]

Financial Performance - Revenue for the first half of 2024 increased by 6.3% to $7.312 billion, compared to $6.879 billion in 2023[2] - Net profit rose by 15.7% to $550 million, up from $476 million in the previous year[2] - Gross margin improved by 67 basis points to 39.9%[2] - Operating profit before interest and tax increased by 11.8% to $626 million, with an operating margin of 8.6%[4] - The company's revenue for the reporting period was $7,312,000,000, representing a growth of 6.3% compared to the same period last year[11] - Shareholders' profit increased to $550,000,000, up 15.7% from $476,000,000 in the previous year[11] - Gross profit for the same period was USD 2,920,717, compared to USD 2,701,664 in 2023, reflecting a year-over-year increase of about 8.1%[28] - The net profit attributable to shareholders for the six months was USD 550,365, up from USD 475,779 in the previous year, indicating a growth of approximately 15.7%[28] - The group reported a net profit of $550,365,000 for the six months ended June 30, 2024, compared to $475,779,000 for the same period in 2023, representing an increase of approximately 15.7%[46] Cash Flow and Capital Management - Free cash flow reached a record $508 million, an increase of $207 million from the prior year[5] - Free cash flow generated during the period was $508,000,000, compared to $301,000,000 in the same period last year[15] - The company reported a strong cash flow and improved balance sheet through rigorous working capital management[27] - The net cash generated from operating activities for the six months ended June 30, 2024, was $774,916 thousand, compared to $693,774 thousand in the previous year, indicating an increase of approximately 11.7%[32] - The company incurred a loss of $170,119 thousand in acquiring intangible assets during the six months ended June 30, 2024, compared to $186,680 thousand in the same period of 2023[32] Dividends and Shareholder Returns - The company declared an interim dividend of approximately 13.90 US cents per share, up from 12.23 US cents in 2023[3] - The company declared a final dividend of 98.00 HKD cents (approximately 12.61 USD cents) per share, totaling around $231,355,000, compared to 90.00 HKD cents (approximately 11.58 USD cents) per share, totaling about $212,525,000 in 2023[47] - The company plans to distribute an interim dividend of 108.00 HKD cents (approximately 13.90 USD cents) per share, amounting to approximately $254,725,000, compared to 95.00 HKD cents (approximately 12.23 USD cents) per share, totaling about $224,334,000 in 2023[47] - The company repurchased a total of 2,500,000 ordinary shares at a price between HKD 86.00 and HKD 105.00, with a total cost of approximately USD 30,960,000[24] - The company repurchased a total of 2,500,000 shares in 2024, with a total cost of approximately $30,960,000, which has been included in retained earnings[57] - The company repurchased 1,000,000 shares in May 2024 at a maximum price of HKD 105.00 per share, totaling $13,147 thousand[57] Operational Efficiency - Capital expenditure for the first half of 2024 was $100 million, a decrease of 52.3% year-over-year[5] - Operating expenses totaled $2,302,000,000, accounting for 31.5% of revenue, an increase from 31.2% in the previous year[13] - The total inventory was $4,027,000,000, with inventory turnover days decreasing from 128 days to 104 days[17] - Inventory decreased by $71 million from the end of 2023, with total inventory days reduced from 128 days to 104 days[4] - The company reported a significant increase in depreciation expenses, with property, plant, and equipment depreciation rising to $142,561 thousand from $129,727 thousand year-over-year[31] - The total depreciation and amortization expenses for the period amounted to $325,640,000, up from $283,046,000 in the previous year, indicating a year-over-year increase of about 15.1%[46] Debt and Equity Management - The debt ratio improved to 9.2%, reflecting effective cost management and lower interest expenses[5] - The net debt-to-equity ratio improved to 9.2%, down from 25.7% in the previous year[15] - The total amount of shareholders' equity increased by 8.8% to $6,300,000,000[14] - As of June 30, 2024, total equity attributable to shareholders increased to $6,252,844 thousand from $5,747,550 thousand as of December 31, 2023, representing an increase of approximately 8.8%[30] - The company’s current liabilities totaled USD 5,143,611, compared to USD 4,783,469 at the end of 2023, indicating an increase in operational scale[29] Market Performance - The Milwaukee brand saw a sales growth of 11.2% in local currency, reinforcing its position as the leading professional power tool brand globally[4] - North America accounted for $5,461,455 thousand of the total revenue for the six months ended June 30, 2024, up from $5,167,421 thousand in 2023, marking an increase of about 5.7%[43] - The external sales revenue from the power tools segment was $6,884,453 thousand for the six months ended June 30, 2024, compared to $6,450,231 thousand in the same period of 2023, reflecting an increase of about 6.7%[39] Strategic Initiatives - The company aims to expand its market leadership through its brands MILWAUKEE and RYOBI, which complement each other in the industry[27] - The company plans to continue its leadership in the rechargeable sector with a strong and motivated team under the new CEO Steven Philip Richman[27] Assets and Liabilities - As of June 30, 2024, total assets amounted to USD 7,930,699, an increase from USD 7,122,714 as of December 31, 2023[29] - The company reported a decrease in non-current liabilities, with lease liabilities at $725,923 thousand as of June 30, 2024, down from $734,369 thousand at the end of 2023[30] - The company’s total liabilities and non-current liabilities amounted to $7,978,045 thousand as of June 30, 2024, compared to $7,618,514 thousand at the end of 2023, marking an increase of approximately 4.7%[30] - The total accounts receivable at the end of the reporting period was $2,405,903,000, compared to $1,811,592,000 as of December 31, 2023, reflecting an increase of approximately 32.7%[51] - The total procurement payables amounted to $1,999,013,000, an increase from $1,655,367,000 in the previous year, representing a growth of approximately 20.8%[53] Accounting and Compliance - The group confirmed no projected pillar two income tax expenses for the fiscal year ending December 31, 2024, across all jurisdictions where it operates[5] - The group’s total liabilities related to leaseback transactions were not significantly impacted by the application of the revised Hong Kong Financial Reporting Standards[38] - The group’s non-current liabilities classification remained unaffected by the new accounting policies, with no significant impact on the profit or earnings per share for the six months ended June 30, 2023[38]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has successfully transitioned its management, with Joseph Galli Jr. retiring and Steven Richman taking over as CEO, which is expected to positively impact the Milwaukee brand [3] - The company has repurchased a total of 2.6 billion HKD worth of shares, indicating confidence in its future performance and suggesting that the stock may be undervalued [3] - The company is anticipated to benefit from a potential interest rate cut by the Federal Reserve, which could stimulate demand in the real estate sector and positively affect the company's stock price [3] - Revenue projections for 2024-2026 are estimated at 14.91 billion, 16.47 billion, and 18.36 billion USD, with corresponding net profits of 1.16 billion, 1.32 billion, and 1.49 billion USD, reflecting a positive growth outlook [3] Financial Data Summary - The company reported a revenue of 13.73 billion HKD in 2023, with an expected growth rate of 8.59% in 2024 [4] - The projected net profit for 2024 is 1.16 billion HKD, with a net profit growth rate of 18.49% [4] - The earnings per share (EPS) is expected to increase from 0.53 HKD in 2023 to 0.63 HKD in 2024 [4] - The price-to-earnings (PE) ratio is projected to decrease from 36.66 in 2023 to 20.30 in 2024, indicating improved valuation [4] - The return on equity (ROE) is expected to remain stable around 16.97% in 2024 [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to benefit from a recovery in industry export data and the launch of new products, with a significant number of new tools and equipment introduced [3][4] - The company has launched 230 new products, including enhancements in battery technology and high-power tools, which are anticipated to drive revenue growth [3] - The company is positioned as an industry leader, with its brand Milwaukee ranking second in global sales of power tools and Ryobi being the leading brand in outdoor power equipment [3] Summary by Relevant Sections Industry Performance - In the first half of 2024, China's power tool exports reached $5.11 billion, a year-on-year increase of 14.3%, while lawn mower exports were $1.35 billion, up 27.0% [3] - The second quarter of 2024 saw a significant increase in exports, with power tools reaching $2.75 billion (up 17.1% year-on-year) and lawn mowers at $590 million (up 55.0% year-on-year) [3] Financial Projections - The company is projected to achieve revenues of $14.91 billion, $16.47 billion, and $18.36 billion for the years 2024, 2025, and 2026 respectively, with net profits of $1.16 billion, $1.32 billion, and $1.49 billion [4][5] - The expected growth rates for revenue are 8.59%, 10.48%, and 11.46% for the years 2024, 2025, and 2026 respectively [5] Market Position - The company’s Milwaukee brand has a market share of 6% in the professional power tool segment, while Ryobi holds an 8% share in the DIY segment [3] - The company is expected to benefit from the anticipated recovery in consumer demand and channel restocking due to the strengthening of U.S. interest rate cut expectations [4]

Investment Rating - The report maintains an "Accumulate" rating for Techtronic Industries (00669 HK) and raises the target price to HK$101.40 from HK$89.10 [2]. Core Views - The new CEO will continue the existing strategy, focusing on operational efficiency and inventory reduction [1]. - The company reported a slight revenue increase of 3.6% year-on-year in 2023, with total revenue reaching USD 13.73 billion [5]. - Net profit for 2023 was USD 976 million, a decrease of 9.4% compared to the previous year, but above the forecast of USD 953 million [5]. - The company aims to reduce inventory turnover days in the coming years, having successfully decreased inventory from USD 5.08 billion to USD 4.1 billion [1]. - The Milwaukee brand saw a revenue increase of 12.7% in local currency, benefiting from a shift towards cordless tools and improved gross margins [1]. Financial Summary - Projected shareholder net profits for 2024-2026 are USD 1.085 billion, USD 1.181 billion, and USD 1.260 billion respectively [1]. - Earnings per share (EPS) for the same period are forecasted at USD 0.591, USD 0.643, and USD 0.685 [1]. - The company’s net debt ratio improved from 46.6% to 32.8% due to debt reduction measures [1]. - Capital expenditures in 2023 amounted to USD 502 million, primarily for expanding manufacturing facilities in Vietnam, Mexico, and the U.S. [1]. Comparative Analysis - The company’s market capitalization is approximately HK$169.93 billion, with a current share price of HK$92.95 [2]. - The projected price-to-earnings (P/E) ratios for 2024-2026 are 22.0x, 20.2x, and 19.0x respectively, with a price-to-book (P/B) ratio of 3.8x for 2024 [1][4].

Company Overview Industry and Company - The company was established in 1985 and operates primarily in two major business segments: electric tools and floor care and new cleaning products [1] - The company holds a leading position in the global electric tools industry, ranking first with a market share of 16.6% in 2020 [1] - The company's global operations are spread across North America, Europe, the Middle East, and Asia [1] Key Points and Arguments - The company has a rich product portfolio that supports its market leadership in the electric tools sector [1] - The strategic focus on electric tools and cleaning products positions the company well for future growth opportunities in these segments [1] Other Important Information - The company's extensive global presence enhances its ability to capture diverse market opportunities and mitigate regional risks [1]

2023 年報 坑槽剪 M18 FORCE LOGIC坑槽剪是工地最有效切割 支撐杆的方式。它採用專利的剪邊模，提供 方正、齊口的切割，毋須再作額外修整或去邊， 而其雙重模切設計亦可以避免刀片外露，減少 電工在工地上割傷自己的機會。 專利剪邊模 達至齊口切割而毋須 修整或去邊 ...

2024 年 03 月 10 日 公司研究 评级：买入 (维持 ) 研究所： [Table_Title] 年经营稳健， 表现优秀 证券分析师： 杨仁文 S0350521120001 2023 MILWAUKEE yangrw@ghzq.com.cn 证券分析师： 马川琪 S0350523050001 ——创科实业（ ） 年报点评报告 00669 2023 macq@ghzq.com.cn 联系人 ： 廖小慧 S0350122080035 liaoxh@ghzq.com.cn 最近一年走势 事件 : 创科实业2024年3月6日公告：2023年公司实现营业额137.31亿美元， 同比+3.6%，归母净利润9.76亿美元，同比-9.4%，毛利率39.5%，较 去年同期+0.14pct，净利率 7.1%，较去年同期-1pct，摊薄 EPS 53.17 美仙，公司拟派发末期股息每股98港仙。 投资要点 :  2023年下半年业绩改善明显，MILWAUKEE 业务表现优秀：2023 相对恒生指数表现 2024/03/08 年公司实现营业额137.31 亿美元，同比+3.6%，归母净利润 9.76 表现 1M 3M 12 ...

家用电器/其他家电Ⅱ 公 司 研 创科实业（00669.HK） 业绩率先复苏，短期有韧性，2025 年增长有望提速 究 2024年03月08日 ——港股公司信息更新报告 投资评级：买入（维持） 吴柳燕（分析师） 李祎晗（联系人） wuliuyan@kysec.cn liyihan@kysec.cn 证 书编号：S0790521110001 证书编号：S0790123080037 日期 2024/3/7  2024年业绩韧性有望继续优于同业，2025年受益美国地产复苏有望提速 港 当前股价(港元) 93.650 基于2023H2收入复苏超预期，我们将2024/2025年净利润预测由11.38/13.01亿 股 一年最高最低(港元) 98.350/67.350 公 美元上调至11.45/13.69亿美元，新增2026年净利润预测17.1亿美元，分别对应 司 总市值(亿港元) 1,717.39 同比增速17.3%/19.6%/24.9%，对应摊薄后EPS 0.6、0.7、0.9美元，当前股价分 信 流通市值(亿港元) 1,717.39 息 别对应 19.2、16.0、12.8 倍 PE。短期专业级电动工具增长具备 ...