Core Viewpoint - Goldman Sachs forecasts a 7% year-over-year revenue growth for Techtronic Industries (00669) in 2026, with a return to 10% growth for Milwaukee tools after a one-time adjustment in the second half of the year [1] Revenue Growth - The overall revenue growth for Techtronic Industries is expected to slow down in the second half of the year due to Milwaukee's proactive adjustment of export volumes to the U.S. from China, maintaining a full-year revenue growth estimate of 5% [1] - The second half is projected to grow by 3%, compared to 7% growth in the first half [1] Margin and Cost Structure - Gross margin is expected to expand by 0.1 percentage points, while SG&A (Selling, General and Administrative expenses) as a percentage of revenue is anticipated to decrease by 0.1 percentage points [1] - The company's pricing strategy is more cautious compared to Stanley Black & Decker, relying on capacity transfer rather than broad price increases to offset tariff impacts, which is expected to support stable gross margins in the second half [1] Target Price and Rating - Goldman Sachs raised the target price for Techtronic Industries from HKD 110.1 to HKD 111.3, maintaining a "Buy" rating [1] Retail Performance - The end retail (POS) performance of Techtronic Industries remains resilient despite the revenue growth slowdown due to Milwaukee's adjustments [1]

Group 1 - The core viewpoint of the article is that Goldman Sachs has raised its target price for Techtronic Industries (00669) from HKD 110.1 to HKD 111.3, maintaining a "Buy" rating, with a projected revenue growth of 7% in 2026 [1] - The professional tools segment (Milwaukee) is expected to return to a 10% growth after a one-time adjustment in the second half of the year, while the consumer tools segment (Ryobi) is anticipated to recover moderately following interest rate cuts in the U.S. [1] - Gross margin is projected to expand by 0.1 percentage points, and SG&A expenses as a percentage of revenue are expected to decrease by 0.1 percentage points [1] Group 2 - The company's retail performance (POS) remains resilient, but overall revenue growth is expected to slow down in the second half due to Milwaukee's proactive adjustment of export volumes to the U.S. from China [1] - Goldman Sachs maintains its full-year revenue growth forecast at 5%, with a projected growth of 3% in the second half compared to 7% in the first half [1] - The company's pricing strategy is more cautious compared to Stanley Black & Decker, relying on capacity shifts rather than broad price increases to mitigate tariff impacts, which is expected to support stable gross margins in the second half [1]