[ET Net News Agency, 11 May 2020] HSBC Global Research maintained its target price for
Techtronic Industries (TTI)(00669) at HK$60 but downgraded its rating to "hold" from "buy"
with 6% downside.
The research house has selected four listed Chinese suppliers of power tool controls and
battery protection devices. Cumulatively, HSBC estimated that they account for 30% of
TTI's electronics purchase or 9% of total COGS. Their average 1Q revenue fell 9% due to
delayed orders and production halts.
HSBC thinks TTI's sufficient inventories, built up during the US-China trade tensions in
2019, will buffer the supply shock in 1Q. However, 2Q might be more difficult for TTI
with the COVID-19 pandemic. These Chinese suppliers also flagged potential overseas order
cancellations in 2Q in their filings.
HSBC cut its 2020/21/22 EPS forecasts by 14%/12%/7% to reflect weaker sales. (KL)
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00669 TECHTRONIC IND
Nominal 
105.000 +2.200 (+2.140%) Research Report
11/05/2020 17:30
{I-bank focus}HSBC lowers Techtronic Industries to "hold"
| Remark: | Real time quote last updated: 23/04/2024 17:59 |
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