Core Viewpoint - Morgan Stanley identifies Techtronic Industries (00699) as a top pick for 2026, citing a resurgence in the electric tools industry driven by normalized supply chains, favorable interest rate cycles, and company-specific catalysts [1] Group 1: Industry Outlook - The electric tools sector is expected to outperform the market for the remainder of the year as attention shifts back to growth potential [1] - The channel destocking cycle in the industry is nearing completion, with strong pricing power maintained [1] - Industry consolidation is accelerating, benefiting large brand suppliers [1] Group 2: Company-Specific Insights - Revenue growth for the Milwaukee brand is anticipated to accelerate due to rapid expansion of the total addressable market (TAM) [1] - Following the exit from Walmart's HART brand, the company will refocus on consumer business, particularly the Ryobi brand at Home Depot [1] - The impact of supply chain migration on the industry is largely over, with a noticeable recovery in both professional and DIY demand [1]

Core Viewpoint - Morgan Stanley identifies Techtronic Industries (00699) as a top pick for 2026, citing a return to growth in the power tools industry driven by supply chain normalization, favorable interest rate cycles, and company-specific catalysts [1] Group 1: Industry Outlook - The power tools industry is expected to outperform the market for the remainder of the year as attention shifts back to growth potential [1] - The channel destocking cycle in the industry is nearing completion, with strong pricing power maintained [1] - The impact of supply chain migration on the industry is largely over, and both professional and DIY demand are showing clear signs of recovery [1] Group 2: Company-Specific Insights - Revenue growth for the Milwaukee brand is anticipated to accelerate due to the rapid expansion of the total addressable market (TAM) [1] - Following the exit from Walmart's HART brand, the company will refocus on consumer business, particularly the Ryobi brand at Home Depot [1] - The industry consolidation is accelerating, benefiting large brand suppliers [1]

Core Viewpoint - Morgan Stanley identifies Techtronic Industries as a top stock pick for 2026, maintaining an "overweight" rating with a target price of HKD 136, citing a return to growth in the power tools industry driven by supply chain normalization, favorable interest rate cycles, and company-specific catalysts [1] Group 1: Industry Insights - The power tools industry is expected to re-enter a growth trajectory, influenced by the normalization of supply chains and inventory adjustments [1] - The total addressable market (TAM) for the industry is rapidly expanding, which is anticipated to accelerate revenue growth for the Milwaukee brand [1] Group 2: Company-Specific Developments - Techtronic Industries is refocusing on its consumer business after exiting the HART brand at Walmart, particularly emphasizing the Ryobi brand at Home Depot [1]

Core Viewpoint - Techtronic Industries (00669) is voluntarily terminating its HART business by the end of 2025 to focus on profitability growth, while retaining the HART brand in its product portfolio [1] Group 1: Business Strategy - The company aims to achieve an operating profit margin of over 10% in the medium term by discontinuing the HART business, which is currently estimated to contribute a low single-digit percentage to total sales this year [1] - The strong demand trends for Milwaukee and Ryobi brands across all core verticals in November are expected to support the company's growth momentum into 2026 [1] Group 2: Market Performance - As of the report, Techtronic Industries' stock rose by 2.88% to HKD 94.7, with a trading volume of HKD 178 million [1]

Core Viewpoint - Techtronic Industries (00669) is set to voluntarily terminate its HART business by the end of 2025, while retaining the HART brand in its product portfolio, aiming to enhance profitability and operational efficiency [1] Group 1: Business Strategy - The company emphasizes its commitment to continuous profit growth, which is reflected in the decision to exit the HART business [1] - The termination of the HART business is expected to help the company achieve a mid-term operating profit margin target of over 10% [1] Group 2: Sales Performance - Sales demand for Milwaukee and Ryobi brands in all core verticals remained strong throughout November, providing a solid foundation for the company's success in 2026 [1] - Citigroup estimates that the HART business accounts for a low single-digit percentage of the company's total sales this year, indicating its relatively minor impact on overall performance [1]