Goldman Sachs: Techtronic Industries (00669.HK) profit margin performance exceeds expectations, raising earnings forecast and target price.

According to the Zhichun Finance APP, Goldman Sachs has released a research report stating that Techtronic Industries (00669.HK) is expected to report a revenue of USD 8.292 billion for the first half of 2026, representing a year-on-year increase of 6%, which aligns with expectations. Operating profit is projected to be USD 815 million, and net profit is expected to reach USD 738 million, reflecting year-on-year growth of 16% and 18%, respectively, surpassing the bank's forecasts by 6% and 3%. During this period, the gross profit margin improved by 2.6 percentage points year-on-year to 42.9%, with operating profit margin and net profit margin at 8.4% and 7.7%, both slightly above the bank's expectations. In response to the better-than-expected performance in profit margins, Goldman Sachs has raised its earnings per share forecast for Techtronic from 3% to 7% for 2026 to 2030 and increased the target price from HKD 152.4 to HKD 160.7, corresponding to an expected price-to-earnings ratio of approximately 22 times for 2027, maintaining a "Buy" rating.