HK Stock Market Move | TECHTRONIC IND(00669) rises over 3%; the company reiterates its full-year profit guidance and expects its EBIT margin to rise further.

TECHTRONIC IND (00669) rose over 3%, up 3.43% as of press time, at HK$129.7, with a turnover of HK$711 million. On the news front, UBS released a research report stating that TECHTRONIC IND's management reiterated confidence in achieving its full-year revenue growth guidance of 6% to 7%, mainly driven by low double-digit year-on-year growth at Milwaukee. UBS added that AIDC is benefiting from contractors' multi-year backlog orders, with related sales remaining strong. The bank cited management's forecast that this year's EBIT margin is expected to reach 10%, earlier than the original timetable, and that the EBIT margin is expected to rise further, supported by continued gross margin expansion and a stable SG&A expense ratio. Management also noted that there is potential room to raise the dividend payout ratio and possibly increase share buybacks.