创科实业(00669 HK)中期业绩符合预期：估值将缓慢回升

公司报告：创科实业(00669 HK) AccumulateDowngraded Company ReportWedowngrade to"Accumulate",and increase TP to HK$109.00.Techtronic Industries (the“Company”)isstilltrading at a significant discountcompared toitsfive-yearhistorical PE average of 20x.The Company’s interimresults mostly met our expectations, with theexception of slightly slower debtreductionthan expected.Therefore,we maintain our 2025-2027 revenueforecastsatUS$15,637mn(+0.3%)/US$16,992mn(+0.4%)/US$18,422(+0.5%) mn, respectively.We slightly decrease the Company'searnings per share in 2025/ 2026/ 2027 to beUS$0.700 (-3.0%),US$0.803 (-1.8%), andUS$0.929(-1.1%), respectively.Our TP represents 20.0x/ 17.5x/15.1x 2025-2027 PE ratio and 3.6x 2025 PB ratio. 评级：收集(下调) 研究报告The Company posted revenue of US$7,833 mn, representing an increaseof 7.1% YoY,exceeding our expectations by 0.4%.Growth was primarilydriven by the Company’s two leading brands, Milwaukee and Ryobi, postinggrowth of 11.9% and 8.7% YoY in local currency. All categories of Milwaukee,which accounts for a majority of the Company’s revenue and its highest marginsegment,performed well.With outdoor power equipment and personalprotective equipment outperforming the portfolio average.Ryobi’s growth of8.7% in local currency indicates that demand for DIY power tools may berecovering.The Company reiterates their strategy of attracting new users withexemplary products and increasing spend from existing users through cordlessproducts. Share price股价:HK$95.200 Stock performance Equity Research Report证券Profitabilityslightly missed our expectations with the Company postingEPS of US$0.344in 1H2025,representing an increase of14.1% YoY, butmissing our target by 4.5%.TheCompany posted gross margin of40.3%,increasing by 0.3 ppt YoY, missing expectations by 0.1ppt. Operating marginwas posted at 9.1%, increasing 0.5ppt YoY, in line with expectations.TheCompany’snet margin was 8.0%,increasing 0.5 ppt YoY,but missingexpectations by 0.4ppt. The miss in net margin was primarily due to financecosts exceeding expectations by 88.2%,caused bythe Company preferring tomaintain extra cash on handinstead of reducing their debt. Risk factor:potential of a recession in the United States decreasing demandfromconsumers. Source:Bloomberg,Guotai Junan International. Source:Bloomberg,Guotai Junan International. Company Rating Definition The Benchmark:Hong Kong Hang Seng Index Time Horizon: 6 to 18 months The Benchmark:Hong Kong Hang Seng Index Time Horizon: 6 to 18 months (1)The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.(2)The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research Report. (4)Guotai Junan International Holdings Limited and/or its subsidiaries have not had investment banking relationships with the issuermentioned in this Research Report within the preceding 12months.(5)Guotai Junan International Holdings Limited and/or its subsidiariesare not making a market in the securities in respect of the issuer mentioned in this Research Report.(6)Guotai Junan International Holdings Limited and/or its subsidiarieshave not employed an individual serving as an officerof the issuer mentioned in this Research Report. There is no officer of the issuer mentioned in this Research Report associated withGuotai JunanInternational Holdings Limited and/or its subsidiaries. DISCLAIMER This Research Report does not constitute an invitation or offer to acquire, purchase or subscribe for securities by Guotai JunanSecurities (Hong Kong) Limited ("Guotai Junan"). Guotai Junan and its group companies may do business that relatesto companiescovered in research reports, including investment banking, investment services, etc. (for example, the placing agent, lead manager,sponsor, underwriter or invest proprietarily). Any opinions expressed in this report may differ or be contraryto opinions or investment strategies expressed orally or in written formby sales persons, dealers and other professional executives of Guotai Junan group of companies. Any opinions expressed in thisreport may differ or be contrary to opinions or investment decisions made by the asset management and investment banking groupsof Guotai Junan. Though best effort has been made to ensure the accuracy of the information and data contained in this Research Report, GuotaiJunan does not guarantee the accuracyand completeness of the information and data herein. This Research Report may containsome forward-looking estimates and forecasts derived from the assumptions of the future political and economic conditions withinherently unpredictable and mutable situation, so uncertainty may contain. Investors should understand and comprehend theinvestment objectives and its related risks, and where necessary consult their own financial advisers prior to any investmentdecision. This Research Report is not directed at, or intended for distribution to