创科实业（“TTI”或“公司”）是全球电动工具行业龙头，具备多种优势。1）公司采用多品牌战略满足不同消费者的各类需求，旗下主要品牌具备较强品牌竞争力。2）公司技术积累深厚。公司研发的充电式电池系统具有兼容性强、性能优越、可适应复杂环境的优势。3）公司电池平台兼容产品种类繁多，裸工具+电池的销售模式打造工具行业的“生态系统”。4）公司与北美最大的家装零售商家得宝深度合作，渠道优势明显。
　　电动工具行业中长期发展前景向好。1）工具行业应用场景丰富，消费需求稳固。2）无绳化工具在易用性、便利性上有较为明显的优势，长期发展趋势向好。3）公司作为行业龙头，发展优于同业，市场占有率将继续提升。
　　首予“收集”，目标价为107.30港元。我们预计公司2023-2025年营收分别为13,929/15,034/16,617百万美元。我们的目标价对应22.0倍/ 20.4倍/ 17.9倍的2023-2025年市盈率和4.3倍的2023年市净率。

研究报告全文：股票研TableTitleAlexBai白舸CompanyReportTechtronicIndustries00669HK究85225097202EquityResearch公司报告创科实业00669HKgebaigtjascomhk15March2023ATableSGlobalummaryLeaderintheElectricToolIndustryBuildinganEcosystemofElectricToolsInitiateWithAccumulate公全球电动工具行业领导者构建电动工具生态系统首予收集司TechtronicIndustriesCompanyLimitedTTIortheCompanyisaTableRankgloballeaderinelectrictoolindustrywithcompetitiveadvantages1TheRatingAccumulate报Companysmulti-brandstrategyisabletomeettheneedsofconsumersitsInitial告mainbrandshavestrongbrandcompetitiveness2TheCompanyhasstrong评级收集首次覆盖CompanyReporttechnologicaldevelopmenttherechargeablebatterysystemdevelopedbytheCompanyhasadvantagesofstrongcompatibilitysuperiorperformanceandadaptabilitytocomplexenvironments3TheCompanysbatteryplatformis6TablePrice-18mTP目标价HK10730compatiblewithawidevarietyofproductsanditssalesmodelofbaretoolbatteriesoffersanecosysteminthetoolindustry4TheCompanyisworkingShareprice股价HK84050withHomeDepotthelargesthomeimprovementretailerinNorthAmericaandhasgainedchanneladvantages证Themedium-andlong-termdevelopmentprospectsofthepowertoolStockperformance券告industryarepromising1Thepowertoolindustryhasrichapplicationsand股价表现报研stableconsumerdemand2CordlesstoolshaveobviousadvantagesineaseTableQuotePic200究ofuseandconvenienceandthelong-termdevelopmenttrendispositive3ofreturn究研AsaleaderintheindustrytheCompanysdevelopmentissuperiortothatof100报itspeersanditsmarketsharewillcontinuetoincrease券00告证InitiatewithAccumulateandaTPofHK10730Weforecastthe100EquityResearchReportCompanysrevenuein2023-2025tobeUS13929mnUS15034mn200US16617mnrespectivelyOurTPrepresents220x204x179x2023-2025PEratioand43x2023PBratio300Tab创科实业TTI或公司是全球电动工具行业龙头具备多种优势1公司采用400leI多品牌战略满足不同消费者的各类需求旗下主要品牌具备较强品牌竞争力2公司技术500Mar-22Jun-22Sep-22Dec-22Mar-23积累深厚公司研发的充电式电池系统具有兼容性强性能优越可适应复杂环境的优势nfo13公司电池平台兼容产品种类繁多裸工具电池的销售模式打造工具行业的生态系统HSIindexTTI4公司与北美最大的家装零售商家得宝深度合作渠道优势明显机电动工具行业中长期发展前景向好1工具行业应用场景丰富消费需求稳固2无绳械化工具在易用性便利性上有较为明显的优势长期发展趋势向好3公司作为行业龙头ChangeTablePriceChangeinSharePrice1M3M1Y行发展优于同业市场占有率将继续提升股价变动1个月3个月1年Abs216127305业首予收集目标价为10730港元我们预计公司2023-2025年营收分别为绝对变动139291503416617百万美元我们的目标价对应220倍204倍179倍的2023-2025ReltoHSIndex128105291MachinerySector年市盈率和43倍的2023年市净率相对恒指变动AvgsharepriceHK870934933平均股价港元SourceBloombergGuotaiJunanInternationalTableInfYTableearEndTurnoverNetProfitEPSEPSPERBPSPBRDPSYieldROEo2年结Profit收入股东净利每股净利每股净利变动市盈率每股净资产市净率每股股息股息率净资产收益率1231USDmUSDmUSDxUSDxUSD2021A132031099060037110965257442021520255创2022A13254107705892011184283738025123217科2023F13929114806256210530321134024623207实2024F15034124406768197403615300264241982025F16617141907691388559408027029327200业TableBaseDataSharesinissuem总股数m18348Majorshareholder大股东PudwillHorstJulius198MarketcapHKm市值HKm1548569Freefloat自由流通比率7513monthaveragevol3个月平均成交股数00071865FY23NetgearingFY23净负债股东资金53852WeekshighlowHK52周高低HK13570072700TechtronicIndustries00669HKTechtronicIndustries00669SourcetheCompanyGuotaiJunanInternationalSeethelastpagefordisclaimerPage1of19TablePageHeaderTechtronicIndustries00669HK1raMthgiRelbaTContentsCOMPANYPROFILE3TheCompanyleadsthedevelopmenttrendofelectrictoolsandhasstrongbrandeffect3TheCompanysperformanceremainedsolidandthegrossprofitmargincontinuestoincrease5March20235DiscussionontheCompanysincreasinggrossprofitmargin71INDUSTRYANALYSIS7ThemarketofpowertoolsandOPEhasmaintainedsteadygrowth7EuropeandAmericaarethemainconsumermarkets8Cordlesselectrictoolshavebecomeadevelopmenttrend9Theindustryishighlyconcentratedandthecompetitionlandscapeisstable10COMPETITIONANALYSIS11BrandCoordinateddevelopmentofmultiplebrandstoestablishbrandcompetitiveness11TechnologyBatteryplatformwithtechnicaladvantages2raMthgiRelb11aTChannelsClosecooperationwithofflinechannels13GROWTHPROSPECTSANALYSIS13TheCompanyhasmadeeffortstodeveloptheglobalmarketandactivelyenteronlinechannels13TheCompanycontinuesupdatingproductstodriveconsumerdemandforreplacement14EARNINGSFORECASTSANDRECOMMENDATIONS15Coreassumptions15Earningsforecastsandrecommendations1600669HKRISKFACTORS17Globalrecessionrisk17创科实业Intensifiedmarketcompetitionrisk17UnstabletraderelationsbetweenChinaandtheUnitedStates17FinancialStatementsandRatios182raMthgiRelbaTTechtronicIndustriesCompanyReportSeethelastpagefordisclaimerPage2of19TablePageHeaderTechtronicIndustries00669HKCOMPANYPROFILE1raMthgiRelbaTTheCompanyleadsthedevelopmenttrendofelectrictoolsandhasstrongbrandeffectTechtronicIndustriesCompanyLimitedTTIortheCompanyisafast-growingworldleaderinpowertoolsaccessorieshandtoolsoutdoorpowerequipmentOPEandfloorcareandcleaningindustriesTheCompanywasMarch2023establishedin1985andlistedontheHongKongStockExchangein1990Drivenbybrandacquisitionanditsown5technologicalinnovationtheCompanyhassuccessfullytransformedfromoriginalequipmentmanufacturerOEMoriginal1designmanufacturerODMmodeltooriginalbrandmanufacturerOBMmodelandhasbecomeagloballeaderinelectrictoolsFigure-1TTIsdevelopmentmilestones2raMthgiRelbaT00669HKSourcetheCompanyGuotaiJunanInternationalTheCompanysshareholdingstructureisstableandthefounderMrHorstPudwillisthelargestshareholderMrHorst创科实业PudwillisoneofthefoundersoftheCompanyandisnowtheCompanysexecutivedirectorholding1980oftheCompanyssharesandisthelargestshareholderoftheCompanyTheCompanysownershipstructureisstableTable-1TTIsshareholdingstructure2raMthgiRelbaTShareholdingPersonPositionMainResponsibilityTechtronicIndustriesRatioHorstJuliusPudwillChairmanCo-founderExecutiveDirectorStrategicplanninganddevelopment1980JPMorganChaseConana724TheBankofNewYorkMellonCorporationnana500SourcetheCompanyGuotaiJunanInternationalTheCompanyoperatesmultiplebrandsandhasawiderangeofproductswhichcloselymeetstheneedsofconsumersTheCompanysbrandportfoliohasbeenstronglyenhancedthroughacquisitionandlicensingTheCompanysbrandportfoliocurrentlyincludesMILWAUKEEAEGRYOBIandHARTpowertoolsaccessoriesandhandtoolsRYOBIandHOMELITEoutdoorpowerequipmentEMPIRElayoutandmeasuringproductsandHOOVERORECKVAXandDIRTDEVILfloorcareandappliancesTheCompanyimplementsmulti-brandcoordinateddevelopmentfordifferentconsumersEachbrandincludesawiderangeofcategoriesandcloselymeetstheneedsofconsumersForexampleMILWAUKEEprovideshigh-endproductsforindustrialandprofessionalusersandRYOBIfocusesonconsumer-gradeDIYproductsTheCompanyhasbeendevelopingelectricandcordlesspowertoolsformanyyearsandhassuccessfullybuiltanecosystemofelectrictoolsutilizingtechnologicaladvantagesAsoneofthefirstcompaniestofocusonelectrificationandcordlesspowertoolsTTIhasstrongtechnicaladvantagesinkeycomponentssuchasbrushlessmotorslithiumbatterypacksandelectroniccontrolsystemsTTIhasdevelopedauniversalbatteryplatformwithstrongintercompatibilityandappliedittoCompanyReportvariousbrandsandseriesofproductsForexampletheMILWAUKEEM18serieshasmorethan250productsallofwhichuseSeethelastpagefordisclaimerPage3of19TablePageHeaderTechtronicIndustries00669HKthesamerechargeablelithiumbatterysystemandthesubsequentreplacementofthebatterysystemstillensurescontinuouscompatibilitywiththesameseriesofproductsThecompatiblebatteryplatformnotonly1providesraMTTIsthcustomersgiRewithlbanaTattractiveoptionofbaretoolreplaceablebatteriesbutalsomaintainstheloyaltyofitscustomersduetothehighcross-brandswitchingcostsenablingtheCompanytosuccessfullybuildapowertoolsecosystemFigure-2TTIsbrandsandrepresentativeproductsCoreBrandsPositioningRepresentativeProductsMarch202351IndustrialandprofessionalpowertoolsHandtoolsandMILWAUKEERotaryHydraulicstorageDrillImpactWrenchAngleGrinderSawGreaseGunPolisher2005HammerCableCutterConsumerDIYpowertoolsOutdoorgardenRYOBIequipmentPressureHedgeNailerInflatorSprayerMowerSnowBlowerCultivator2000-2004WasherTrimmer2raMthgiRelbaTPremiumcommercialfloorcareHOOVERUprightHandheldBackpackHardFloorStickVacuumSurfaceBlowerCarpetCleanerRobotCleaner2007VacuumVacuumVacuumCleanerOtherBrands00669HKAEGHOMELITESTILETTOIMPERIALBLADESEMPIREVAXDIRTDEVILORECKHART20052002200720182014199920032013创科实业ProfessionalConsumerPremiumConsumerOscillatingLayoutandHighConsumerfloorProfessionalpowertoolsoutdoorgardenlightweighthandtoolsmulti-toolmeasuringperformancecarecommercialequipmenthandtoolsaccessoriestoolsfloorcarefloorcare2raMthgiRelbaTSourcetheCompanyGuotaiJunanInternationalTechtronicIndustriesNoteYearofTTIsbrandacquisitionorlicensingTTIusesAEGaregisteredtrademarkofABElectroluxpublandRYOBIaregisteredtrademarkofRyobiLimitedunderlicenseAllothertrademarksareownedbyTTIInthefaceofuncertaintyinglobaltraderelationsTTIcontinuestodiversifyitsglobalmanufacturingDuetouncertaintiesinglobaltraderelationsinrecentyearstheCompanyhasgraduallyreduceditsdependenceontheproductioncapacityinChinaandhasbeenexpandingitsmanufacturingfacilitiesinVietnamMexicoandtheUnitedStatessince2018TheproportionoftheCompanysproductioncapacityinChinadroppedfrom70in2019to50in2021CompanyReportSeethelastpagefordisclaimerPage4of19TablePageHeaderTechtronicIndustries00669HKFigure-3TTIsglobalmanufacturingandproductdevelopmentfootprint1raMthgiRelbaTMarch202351SourcetheCompanyGuotaiJunanInternational2raMthgiRelbaTTheCompanysperformanceremainedsolidandthegrossprofitmargincontinuestoincreaseDemandforpowertoolsisstableandtheCompanysrevenueisgrowingsteadilyIn2022theCompanysrevenuewasUS1325billion04yoyandnetprofitattributabletotheparentofUS1077billion-20yoySincethelocalCovidepidemicoutbreakin2020DIYdemandhasincreasedandtheNorthAmericanrealestatemarkethascontinuedtoprosperwhichhasledtocontinuedstrongdemandinthetoolindustryandtheCompanysrevenuehasmaintainedrapidgrowthfortwoconsecutiveyearsSince2022astheUSFederalReservecontinuestoraiseinterestratestosuppressdownstreamdemandtheCompanysrevenuegrowthratedroppedPowerequipmentincludingOPEistheCompanysmainbusinessaccountingfor930oftotalrevenuein2022andfloorcarebusinessaccountedfor70oftotalrevenue00669HKFigure-4TheCompanysrevenueFigure-5Revenuebreakdownbybusinessin2022USbillion创科实业1440Floorcare7012351030258206154102raMthgiRelbaTTechtronicIndustries25002013A2014A2015A2016A2017A2018A2019A2020A2021A2022A2012APowerPowerequipmentFloorcareTotalYoYRHSequipment930SourcetheCompanyGuotaiJunanInternationalSourcetheCompanyGuotaiJunanInternationalTheCompanyscoremarketisNorthAmericaandisdevelopingsteadilyinEuropeAsiaPacificandotherregionsBecauseofthepopularityofDIYandlowpopulationdensityNorthAmericaistheregionwiththelargestshareofglobalpowertoolssalesTheCompanyworkscloselywithHomeDepotthelargesthomeimprovementandbuildingmaterialsretailerinNorthAmericatomeettheneedsofconsumersacrossNorthAmericaInthepastfewyearstheCompanysNorthAmericanrevenueaccountedformorethan75ofitstotalInadditiontheCompanyactivelyexpandsmarketsinotherregionsandmaintainssteadydevelopmentinEuropeAsiaPacificandotherregionsCompanyReportSeethelastpagefordisclaimerPage5of19TablePageHeaderTechtronicIndustries00669HKFigure-6RevenuebreakdownbyregionFigure-7RevenuegrowthbyregionUSbillion1raMthgiRelbaT1450124010830620March2023541102002018201920202021202220182019202020212022NorthAmericaEuropeOthersNorthAmericaEuropeOthersSourcetheCompanyGuotaiJunanInternationalSourcetheCompanyGuotaiJunanInternationalTTIsgrossprofitmarginisincreasingyearbyyearandrevenuegrowthhasbeenfasterthanitspeersTheCompanysgrossprofitmarginhassteadilyincreasedfrom342in2013to393in2022higherthanitsmaincompetitorsStanleyBlackDeckerandMakitaInthepastfewyearstheCompanyhasbeenintheleadingpositionintheindustry2raMthgiRelbaTFigure-8TheCompanysgrossmarginFigure-9TheCompanysnetmargin5520501545393377383388798082838140372103553002520-500669HK2018201920202021202220182019202020212022TTISBDMakitaTTISBDMakitaSnap-onChervonSnap-onChervon创科实业SourcetheCompanyGuotaiJunanInternationalSourcetheCompanyGuotaiJunanInternationalTheCompanysROEisindustry-leadingIn2022theCompanysROEwas217-38pctyoyTheROEoftheCompanyisintheleadingpositionintheindustrymuchhigherthanthatofmajorcompetitorssuchasStanleyBlackDeckerandMakitaSince2012theCompanysROEhasbeensteadilyincreasingshowingtheCompanysexcellentoperatingcapabilitiesandwe2raMthgiRelbaTexpectthatthisadvantagewillremaininthefutureTechtronicIndustriesFigure-10TheCompanysROE3125526219217211911911611620182019202020212022TTISBDMakitaSnap-onChervonSourcetheCompanyGuotaiJunanInternationalNoteForcomparisontheCompanysFY22dataisdisplayedas2021ACompanyReportSeethelastpagefordisclaimerPage6of19TablePageHeaderTechtronicIndustries00669HKDiscussionontheCompanysincreasinggrossprofitmargin1raMthgiRelbaTRecentlysomeinvestorshavequestionedtheCompanysprofitabilityandissuedshort-sellreportsTheCompanyhasrefutedtheshort-sellreportsonseveralfrontsWewanttodiscusstheCompanysgrossmarginTheCompanyssustainedgrossmarginimprovementhadsomeinvestorsaccusingtheCompanyofprofitmanipulationbutweareconfidentontheCompanysintegrityWebelievethattheCompanysgrossprofitmarginimprovementcomesfromthefollowingMarch2023511ThestronggrowthoftheCompanysMilwakeesbusinesshasaffecteditsrevenuecompositionAstheCompanysmainbrandMilwakeehasmaintainedrapidgrowthandhasgraduallybecometheCompanysmainbusinessaccountingformorethan50oftheCompanystotalrevenuein2022AsabrandwithhighgrossprofitmarginMilwakeehasmadecontinuingcontributiontotheCompanysgrossprofitmargingrowthOntheotherhandtheCompanysbaretoolbatteriessalesstrategyhasgreatlypromotedgrowthoftheCompanysbatterybusinessThebatterybusinesshasahighgrossprofitmarginwhilemaintainingrapidgrowthcontributingtotheimprovementintheCompanysoverallgrossprofitmargin2raMthgiRelbaT2TheCompanymaintainsahighrateofsalesexpensesandRDexpensestoensurethecompetitivenessofitsproductsTheCompanyssalesexpenseratiohasincreasedinrecentyearsindicatingthattheCompanyhasincreasedinvestmentinsalestomaintainbrandcompetitionofthecompanysproductsInadditionthecompanysRDexpenseratehasbeenincreasingyearbyyearTheCompanyscontinuousinvestmentinRDensuresthetechnicaladvantagesofitspowertoolsecosystemfurtherenhancingproductcompetitivenessandmaintaininghighgrossmargins00669HKFigure-11TheCompanysgrossmargincontinuestoincrease50创科实业45388393372377383403530252raMthgiRelbaT16016416520157156TechtronicIndustries151029303232375020182019202020212022GrossmarginSellingexpenseratioRDexpenseratioSourcetheCompanyGuotaiJunanInternationalThereforewebelievethattheCompanysstrongproductcompetitivenessguaranteesitsprofitabilityandthepossibilityoffinancialfraudislowINDUSTRYANALYSISThemarketofpowertoolsandOPEhasmaintainedsteadygrowthCompanyReportThetoolindustryincludeshandtoolspowertoolsandOPEForpowertoolspowertypesincludeelectricpneumaticandfueloilElectricpowertoolscanbefurtherdividedintotwocategoriescordedandcordlessAccordingtothedifferenttypesofSeethelastpagefordisclaimerPage7of19TablePageHeaderTechtronicIndustries00669HKconsumerstheycanbedividedintoindustrialgradeprofessionalgradeandconsumergrade1raMthgiRelbaTFigure-12DivisionoftoolindustryPowerToolsElectricCordMarch2023Cordless51ToolOtherPowerIndustryOPESourcesHandToolsSourceFrostSullivanGuotaiJunanInternationalThetoolindustryhasbroadapplicationsstrongdownstreamdemandstrongconsumptionattributesandhasmaintainedsteadygrowthAccordingtoFrostSullivantheglobalpowertoolmarketgrewfrom2rUS309aMthbilliongiRin2016elbtoaTUS392billionin2020withacompoundannualgrowthrateof61Itisexpectedthattheglobalpowertoolmarketwillmaintainacompoundannualgrowthrateof55overthenextfewyearsandwillfurthergrowtoamarketsizeofUS513billionby2025TheglobalpowertoolmarketsizegrewataCAGRof62from2016to2020Itisexpectedtomaintainacompoundannualgrowthrateof59overthenextfewyearsFortheglobalOPEmarketthemarketsizein2016wasUS201billionandgrewtoUS25billionin2020withcompoundannualgrowthrateof56ItisexpectedthattheglobalOPEmarketwillmaintaincompoundannualgrowthrateof53overthenextfewyearsandwillfurthergrowtoamarketsizeofUS324billionby202500669HKFigure-13GlobalmarketsizeofpowertoolsFigure-14GlobalmarketsizeofOPE十亿美元十亿美元6040513创科实业3245046348830843929341530279392250264403732383373582263092012133020202raMthgiRelbaT10TechtronicIndustries100020162017201820192020202120222023202420252016201720182019202020212022202320242025SourceFrostSullivanGuotaiJunanInternationalSourceFrostSullivanGuotaiJunanInternationalEuropeandAmericaarethemainconsumermarketsTheEuropeanandAmericanmarketsarethemainconsumermarketsandthistrendisexpectedtocontinueAccordingtoFrostSullivanEuropeanandAmericanmarketsarethemainmarketsofpowertoolsThehighpercapitaincomehighpercapitahousingareaandhighlaborcostsinEuropeandtheUnitedStatesprovideopportunitiesforthedevelopmentofelectrictoolsIncontrastthepowertoolmarketintheAsiaPacificregionisrelativelysmallMostcountriesinAsiaaredenselypopulatedwithsmalllivingareasandsmallDIYmarketAustraliaandNewZealandhavesimilarlivingconditionstoEuropeandtheUnitedStatesbutthepopulationbaseistoosmalltomatchtheconsumptionscaleinEuropeandAmericaThereforeweexpectthattheEuropeandAmericamarketswillstillbethemainmarketforpowertoolsinthefutureCompanyReportSeethelastpagefordisclaimerPage8of19TablePageHeaderTechtronicIndustries00669HKFigure-15GlobalmarketsizeofpowertoolsbyregionFigure-16GlobalmarketsizeofOPEbyregion1raMthgiRelbaT10010090901031021011009816917017017217580807070324319319316314606039038137336135350504040March202330305540540546552557120373392391402411201010002017201820192020202120172018201920202021NorthAmericaEuropeAPACOthersNorthAmericaEuropeAPACOthersSourceFrostSullivanGuotaiJunanInternationalSourceFrostSullivanGuotaiJunanInternationalAllbrandmanufacturersworkcloselywithofflineretailersandofflinesalesaccountforarelativelyhighproportionofoverallsalesMajorpowertoolsandOPEbrandsworkcloselywithofflineretailerssuchasHomeDepotLowesandWalmartAccordingtoFrostSullivanin2020offlinechannelsoccupied90ofallchannelsofthepowertoolindustryandonlinechannelsoccupied10OfflinechannelswillstillbethemainchannelsTherearemanytypesofpowertoolswithdifferent2raMthgiRelbaTfunctionsForconsumerspre-salesandafter-salesconsultationandmaintenanceisimportantThereforeallbrandmanufacturersattachgreatimportancetotheirrelationshipwithofflinechannelsWiththedevelopmentoftheinternetofflineretailersaregraduallyintroducingmodelsoforderingonlineandpickingupgoodsofflinesotheintegrationofonlineandofflinechannelswillbecloserWeexpectthatofflinesaleswillremainpopularinthefutureCordlesselectrictoolshavebecomeadevelopmenttrendElectrictoolsarethemaintypesofpowertoolsandwillfurtherdeveloptowardscordlesspowertoolsinthefutureAccordingtoFrostSullivanthepowertoolmarketoccupied74ofthetotaltoolmarketin2020Amongthemcordless00669HKelectrictoolsoccupied563WiththeadvancementofbatterytechnologycordlesspowertoolsaredevelopingrapidlyComparedwithcordedtoolscordlesspowertoolsarepoweredbybatterypackswhichhavesignificantsafetyandconvenienceadvantagesForconsumersabatterypackcanbepurchasedandmatchedwithavarietyofcompatibletoolsto创科实业provideconsumerswithpersonalizedchoicesThepenetrationrateofcordlesselectrictoolsisexpectedtocontinuetoincreaseinthefutureTheproportionofelectricOPEisstillrelativelylowAtpresentOPEisstillmainlypneumaticandtheproportionofelectric2raMthgiRelbaTOPEisrelativelylowComparedwithpneumaticOPEcordlesselectricequipmenthasadvantagesoflownoiseandlowTechtronicIndustriespollutionInthefutureasbatterytechnologycontinuestoadvancethesubstitutioneffectfromcordlessdeviceswillbecomemoresignificantTheadvantagesofcordlesstoolsareoutstandingandmarketsharewillcontinuetoincreaseCordlesstoolshaveobviousadvantagesineaseofuseandconvenienceandthelong-termdevelopmenttrendispositiveAtthesametimecordlesstoolshavetheadvantagesoflowpollutionandlownoiseAsimportanceonenvironmentalsocialandgovernanceissuesgrowinpopularitytheenvironmentalprotectionfactorswillalsohelpincreasethepenetrationrateofcordlesspowertoolsWiththecontinuousadvancementinbatterytechnologybatterylifeisnolongerarestrictingfactorinthedevelopmentofcordlesstoolsAccordingtoFrostSullivansestimatesthemarketshareofcordlesselectricpowertoolswillrisefrom470in2020to562in2025andthemarketshareofcordlesspenetrationrateofOPEswillrisefrom170to199in2025CompanyReportSeethelastpagefordisclaimerPage9of19TablePageHeaderTechtronicIndustries00669HKTable-2Compoundgrowthrateofpowertoolsdividedbypowersource1raMthgiRelbaTPeriodOverallCordedCordless2016-20206242932020-20255921992016-2025603096SourceFrostSullivanGuotaiJunanInternationalMarch202351Table-3CompoundgrowthrateofpowertoolsdividedbypowersourcePeriodOverallCordedCordless2016-20205649842020-20255344902016-2025544687SourceFrostSullivanGuotaiJunanInternationalFigure-17CordlesspenetrationrateofelectrictoolsFigure-18CordlesspenetrationrateofOPE2raMthgiRelbaT602256219954419555205251905071834891775018470170451600669HK4014202020212022202320242025202020212022202320242025SourceFrostSullivanGuotaiJunanInternationalSourceFrostSullivanGuotaiJunanInternational创科实业TheindustryishighlyconcentratedandthecompetitionlandscapeisstableThetoolindustryhasahighdegreeofconcentrationandarelativelystablecompetitivelandscapeTheCompanysmaincompetitorsinthefieldofpowertoolsincludeBoschandStanleyBlackDeckerTheconcentrationratiooftop52raMthgiRelbaTcompaniesinpowertoolindustryexceeds607showingahighindustryconcentrationInthefieldofOPEtheCompanysTechtronicIndustriesmaincompetitorsincludeChervonStanleyBlackDeckerBoschandGreebowiththeconcentrationratiooftop5companiesinOPEindustryexceeding623OverallthetoolindustryhasahighdegreeofconcentrationarelativelystablecompetitivelandscapeandindustryleadersoccupyamajorshareofthemarketEspeciallyinthefieldsofpowertoolsandOPEwhichhaverelativelyhighbarrierstoentrythedevelopmentadvantagesofleadingenterprisesaremoreobviousTheCompanysbrandcompetitivenessisstronganditsmarketsharecontinuestoexpandTTIismainlyfocusingonthesubdivisionofpowertoolswithahightechnicalthresholdandwasthefirsttoadoptarechargeablebatterypowersystemplatformWithupgradesinbatterytechnologytheCompanyhasbecomethebiggestbeneficiaryofthetrendofelectrificationandcordlesspowertoolsRelyingonstrongproductcompetitivenesstheCompanysmarketshareintheelectrictoolsandOPEindustriescontinuestoincreaseAccordingtoFrostSullivanscalculationstheCompanyrankedfirstinmarketshareofthepowertoolindustryandOPEindustryin2020withmarketshareof166and204respectivelyCompanyReportSeethelastpagefordisclaimerPage10of19TablePageHeaderTechtronicIndustries00669HKFigure-19MarketshareofelectricpowertoolindustryinFigure-20MarketshareofelectricOPEindustryin20201raMthgiRelbaT202016252041420121511410March202310410410151079186865402TTISBDBosch0ChevronPOSITICTTIBoschSBDMakitaHiltiHiKOKIChevronHusqvarnaGreenworksSourceFrostSullivanGuotaiJunanInternationalSourceFrostSullivanGuotaiJunanInternationalCOMPETITIONANALYSISBrandCoordinateddevelopmentofmultiplebrandstoestablishbrandcompetitiveness2raMthgiRelbaTCoordinateddevelopmentofmultiplebrandstomeetdifferentconsumerdemandsTheCompanyimplementsmulti-brandcoordinateddevelopmentfordifferenttypesofconsumersEachbrandincludesawiderangeofcategoriesandcloselymeetstheneedsofitstargetconsumersForexampleMILWAUKEEprovideshigh-endproductsforindustrialandprofessionalusersRYOBIfocusesonprovidingconsumerproductsforDIYandgardeningenthusiastsandAEGismainlyforprofessionaltechniciansFigure-21BrandPositioningofTTIandOtherLeadingPowerToolManufacturers00669HKMakita创科实业BoschSBD2raMthgiRelbaTTTITechtronicIndustriesConsumerProfessionalIndustrialSourcetheCompanyGuotaiJunanInternationalTechnologyBatteryplatformwithtechnicaladvantagesTTIcontinuestoinvestinkeytechnologiestoestablishabatteryplatformwithtechnologicaladvantagesAfteryearsoftechnicaldevelopmenttheCompanyhascertaintechnicaladvantagesinbatterysystemsTheCompanyhasanumberofinnovationsinthebatteryplatformusedinitsownproductsamongwhichthreekeytechnologiesdeterminethetechnicaladvantagesoftheCompanysbatteryplatformbrushlessmotorscontrolsystemsandlithiumbatterypacksTheachievedtechnicaladvantagesinclude1longlifeandlownoisebrushlessmotor2longerbatteryruntime3strongerenvironmentaladaptabilityforexampletheCompanysbatterysystemcanoperateincoldconditionsaslowas-18CTheseadvantagesmaketheCompanysproductsmoreattractivetoconsumerswithlongerdurabilityandreliabilitycharacteristicsCompanyReportSeethelastpagefordisclaimerPage11of19TablePageHeaderTechtronicIndustries00669HKFigure-22KeyComponentsofTTIsBatterySystem1raMthgiRelbaTMarch202351SourcetheCompany2raMthgiRelbaTTheCompanysRDexpenseratioissignificantlyhigherthanthatofitspeersTTIsRDexpenseratioin2022reached37significantlysurpassingitspeersWeexpecttheCompanytocontinuetomaintainRDexpenseratioofover3andcontinuetoinvestinRDtoexpanditsrechargeableproductlineupbyutilizingmoreofitsowntechnologicaladvantagesinkeycomponentssuchasbrushlessmotorslithiumbatterypacksandcontrolsystemsFigure-24CompatibleProductsonTTIsMajorBatteryFigure-23TheCompanysRDExpensePlatforms产品数570000669HK60043750032322930400创科实业3300200210001201720182019202020212raMthgiRelbaTMilwaukeeM12MilwaukeeM18MilwaukeeMXFUELTechtronicIndustries020182019202020212022RyobiONERyobi40VSourcetheCompanyStanleyBlackDeckerMakitaGuotaiJunanSourcetheCompanyGuotaiJunanInternationalInternationalTheCompanysbatteryplatformhasastrongecosystemwithonebatteryplatformbeingcompatiblewithhundredsofproductsTheCompanyhasdevelopedaleadinguniversalbatteryplatformunderitscorebrandincludingMILWAUKEEsM12seriesM18seriesandMXFUELseriesRYOBIsONEseriesand40VseriesHOOVERandVAXsONEPWRserieseachofwhichcanshareitsownbatterysystemwhilesubsequentbatterysystemupgradeswillremaincompatibleForexampletheRYOBIONEplatformwaslaunchedwithnickel-cadmiumbatteriesin1996andwasupgradedtolithiumbatteriesin2007Thenewlithiumbatteriescanstillbeusedonoldtoolsandtheoldnickel-cadmiumbatteriescanalsobeusedinnewproductsForacertainseriestheCompanycontinuestoincreasethenumberofcompatibleproductsallowinguserstoadapthundredsofproductsthroughonebatterysystemInadditionthegeneral-purposebatteryplatformprovidescustomerswiththepurchaseplanofbaretoolreplaceablebatterieswhichgenerallyreducespurchasecostforcustomersandismoreattractiveThird-partytoolsorbatterysystemsarenotcompatiblewiththeCompanysbrandwhichincreasescostforcustomersswitchingbrandsTheuniversalbatteryplatformdevelopedbytheCompanyisonlyapplicabletotheCompanysCompanyReportproductsandisnotcompatiblewiththird-partyproductsOntheotherhandtheCompanystechnicaladvantagesmakeSeethelastpagefordisclaimerPage12of19TablePageHeaderTechtronicIndustries00669HKthird-partybatterysystemsunabletoachievetheperformanceoftheoriginalbatterysystemThereforethecombinationofbatterysystemsandtoolsincreasescostforcustomersbrandswitchingandhelpstomaintain1theraloyaltMtyofhitsgicustomersRelbaTChannelsClosecooperationwithofflinechannelsTTIhasestablishedacloseworkingrelationshipwithHomeDepotHomeDepotisthelargesthomeimprovementretailerMarch2023inNorthAmericaandthenumberoneretailerofpowertoolswith2317storesinNorthAmericaasat2021TheCompanyhas51acloseworkingrelationshipwithHomeDepotforexampleintheformofexclusivesalesofRYOBIproductsatHomeDepotAsTTIslargestdistributorforthepastdecadeHomeDepotcontributed475ofTTIstotalsalesin2021SincetheoutbreakHomeDepotsonlinechannelshavegraduallydevelopedanditssalesmodelhasbeencontinuouslyoptimizedHomeDepotstoreshaveastrongofflinechanneladvantageontheonehandbecauseofthenumberofHomeDepotstoresandontheotherhandbecauseHomeDepotemploysskilledworkerstoprovidecustomerswithhigh-qualitypre-salesandafter-salesservicesThetoolindustryhasnotbeenseverelyimpactedbye-commerceinthepastfewyearsSincetheoutbreakdistributorssuchasHomeDepothavealsoexpandedtheironlineservicesadoptingthemodel2raMthgiRelbaTofonlineorderingandstorepickuptoenrichsalesmodelsInthepasttwoyearsHomeDepotsonlinesaleshavedevelopedrapidlyandtheproportionofonlinesalesin2021willincreaseto137ItisexpectedthatHomeDepotwillcontinuetoconsolidateitschanneladvantagesinthefutureanditsonlineserviceswillalsodeveloprapidlyTheCompanysclosecooperationwithHomeDepotwillcontinuetohelptheCompanyssalesgrowthintheNorthAmericanmarketFigure-25HomeDepotsContributiontotheCompany6000669HK5048946847540448455455427创科实业3773793773743020102raMthgiRelbaT0TechtronicIndustries20112012201320142015201620172018201920202021SourcetheCompanyGuotaiJunanInternationalInadditiontheCompanyisstillactivelyexpandingothersaleschannelsTheCompanysonlineplatformcontinuestoexpandInadditiontothecooperationwithHomeDepottheCompanysbrandMILWAUKEEisactivelybeingdevelopedone-commerceplatformssuchasAmazonOfflineanothertoolsbrandoftheCompanyHARThasbeenexclusivelysoldinWal-MartalargesupermarketchainintheUnitedStatesTheCompanysactiveexpansionofsaleschannelswillhelptheCompanyfurtherconsolidateitsleadingpositioninthepowertoolindustryandOPEindustryGROWTHPROSPECTSANALYSISTheCompanyhasmadeeffortstodeveloptheglobalmarketandactivelyenteronlinechannelsLong-termdemandinEuropeanandAmericanmarketsremainsresilientandnewdemandhasbeenreleasedintheAsia-PacificregionTheNorthAmericanmarketisTTIslargestmarketaccountingfor772ofrevenuein2022AlthoughCompanyReporttheUSrealestatemarketisfacingpressurefromtheFedsinterestratehikesitwillcontinuetomaintainresilienceinthemediumandlongtermanddrivedemandinthetoolindustrytocontinuetobestrongAccordingtoFrostSullivantheNorthSeethelastpagefordisclaimerPage13of19TablePageHeaderTechtronicIndustries00669HKAmericanregionwillstillbetheregionwiththehighestcompoundgrowthrateforthepowertoolindustryandOPEindustryinthenextfewyearswhiletheAsia-PacificregionwillranksecondIn2022theCompanycontinued1raMtoachievethgistableRgrowthelbinaTotherregionswithoperatingincomeincreasingby65YoYshowingthattheCompanyisactivelyexpandinginotherregionsoftheworldItisexpectedthattheproportionoftheCompanysrevenuefromEuropeandtheAsia-PacificregionwillfurtherincreaseinthefuturecontributingnewdevelopmentspacefortheCompanyMarch2023Table-4Compoundgrowthrateofpowertoolsbyregion51PeriodOverallNorthAmericaEuropeAsia-PacificOthers2016-202062903468482020-202559783365462016-20256084346647SourceFrostSullivanGuotaiJunanInternationalTable-5CompoundgrowthrateofOPEbyregionPeriodOverallNorthAmericaEuropeAsia-PacificOthers2016-202056644953162raMthgiRelbaT2020-202553594454222016-20255461465420SourceFrostSullivanGuotaiJunanInternationalTheCompanyisactivelycuttingintoonlinechannelstobroadensalesdirectionTheCompanyhasenteredtheonlineplatformofHomeDepotandjoinede-commerceplatformssuchasAmazontoexpandonlinechannelsTheCompanysRYOBIbrandisexclusivelysoldonHomeDepotsonlineretailchannelandcontinuestoconsolidatetheCompanysworkingrelationshipwithdealersTheCompanysmainbrandMILWAUKEEhasenteredtheAmazone-commerceplatformfurthertargetingglobalconsumersInadditiontheCompanyalsosellsbrandssuchasHooverandVAXthroughthedualchannel00669HKmodelofofficialself-operatedwebsiteande-commerceplatformTheCompanycontinuesupdatingproductstodriveconsumerdemandforreplacement创科实业TheCompanyactivelyinvestsinresearchanddevelopmentandtheirproductsareconstantlyupdatedTheCompanyisactivelybuildingitsecosystemwiththebatteryplatformasthecoreTheproductisalwayscompatiblewithitsbatteryplatformmakingtheCompanysmainseriesofproductsatoolssystemwiththebatteryplatformasthecoreTheCompanysmaincomponentsareallself-developedandself-producedItsbatteryplatformhastheadvantagesoflongbatterylifehighpower2raMthgiRelbaThighspeedhighefficiencylownoiseandlightweightIthasgreatadvantagesinservicelifeandportabilityofelectrictoolsTechtronicIndustriesTheCompanywillbenefitfromtheincreaseinpenetrationrateofcordlesspowertoolsandcontinuetoexpanditsmarketshareTheCompanyhasbeenworkinginthefieldofelectrictoolsformanyyearswithstrongbrandcompetitivenessandobvioustechnicaladvantagesInthepastfewyearstheCompanyhasgraspedthedevelopmenttrendofelectricandcordlesstoolsanditsmarketsharehasincreasedsignificantlyTheCompanysrichproductlinewillcontinuetomeettheneedsofitsconsumersandtheCompanyisthebiggestbeneficiaryoftheincreaseinthecordlesspowertoolsAccordingtoFrostSullivanscalculationsTTIsmarketsharehascontinuedtoexpandinthepastfewyearsIn2018themarketsharewas142rankingthirdandin2020itroseto166rankingfirstWeexpectthattheCompanywillcontinuetoexpanditsmarketsharebyvirtueofitstechnologicaladvantagesandbrandcompetitivenessCompanyReportSeethelastpagefordisclaimerPage14of19TablePageHeaderTechtronicIndustries00669HKFigure-26Marketshareofmajorcompaniesinpowertools1raMthgiRelbaT171661615115142March202314511312201820192020TTISBDMakitaSourceFrostSullivanGuotaiJunanInternationalTheCompanysmainbrandswillcontinuetobethedriversofrevenueandprofitgrowthAsfarasthepowertoolsbusinessisconcernedMilwaukeeandRyobihavestronggrowthpotentialMilwaukeemainlyfocusesonprofessionalusersanditsindustriesincludeelectricalmechanicalengineeringtransformationtransportationmaintenanceetcTheCompanys2raMthgiRelbaTpenetrationrateintheprofessionalusermarketcontinuestoincreaseSince2015Milwaukeesrevenuegrowthhasremainedabove20whichhasbecomeanimportantdriveroftheCompanysoverallrevenueandgrossprofitmarginItisexpectedthatthecompoundannualgrowthrateofMilwaukeesrevenueinthenextthreeyearswillremainat20anditwillcontinuetoplaythekeyroleinboostinggrowthoftheCompanysrevenueandgrossprofitmarginEARNINGSFORECASTSANDRECOMMENDATIONS00669HKCoreassumptionsPowerEquipmentBusiness创科实业1TheglobalmarketofpowertoolsandOPEwillcontinuetomaintainsteadygrowthAlthoughoverallmarketdemandmaybeweakenedduetotheunstableeconomicenvironmentunderthetrendofelectrificationandcordlesspowertoolstheelectricaltoolmarketcanstillmaintainrelativelystableandcontinuousgrowth2raMthgiRelbaT2BackedbyrisingRDexpenseswebelieveTTIsmoreaggressivenewproductexpansionthanmostpeersonitsleadingTechtronicIndustriesbatteryplatformwilldriveitsmarketsharegrowthAtthesametimethankstoitschannelandbrandadvantagesTTIsmarketshareisexpectedtofurtherincreaseWeforecastthattheCompanyspowertoolsbusinessrevenuefrom2023to2025willbeUS12999millionUS14057millionUS15555millionwithgrowthratesof5481107FloorcarebusinessWeforecastthattherevenueoftheCompanysfloorcarebusinessin2023-2025willbeUS930millionUS977million1062millionwithgrowthrateof2675100Table-6CoreForecastAssumptions2021A2022A2023E2024E2025ERevenuebysegmentUSDmnPowerEquipment1196112329129991405715555CompanyReportFloorcare12429259309771062SeethelastpagefordisclaimerPage15of19TablePageHeaderTechtronicIndustries00669HKOperatingmarginbysegment1raMthgiRelbaTPowerEquipment97100101102103Floorcare24-41-27-25-23KeyfinancialdataUSDmnRevenue1320313254139291503416617March2023Grossprofit5122521355146008670551EBIT12241227131714251593Shareholdersprofit10991077114812441419BasicEPSUSD06000589062506760769SourcetheCompanyGuotaiJunanInternationalEarningsforecastsandrecommendationsWeforecastthattheCompanysrevenuein2023-2025willbeUS7302millionUS9851millionUS13244millionrespectivelyyoygrowthrateof362349344ShareholdersprofitwillbeUS913millionUS1291millionUS1804millionwithagrowthrateof459414397andPERof21x15x10xrespectively2raMthgiRelbaTTheweightedaverageindustryPERis30in2023ConsideringtheuncertaintyoftheCompanysperformancerecoveryweconservativelygivetheCompanyaPERof22xin2023representedaTPofHK10730ThereforeWegiveaninvestmentratingofAccumulateandaTPofHK10730OurTPrepresentsPER220x204x179xin2023-2025andPBR43xin2023withanupsideof271Table-7PeerscomparisonMarketCapPEfiscalyearPBfiscalyearROEDYEVEBITDACompanyStockCodeCurrencyLastPriceHKDmn22A23F24F25F22A23F24F25F23F23F23F00669HKGlobalListedPeersTechtronicIndustriesCoLtd00669HKHKD844001548571831621391173832282521224110ChervonHoldingsLtd02285HKHKD4305022001185148117112282420181741299创科实业StanleyBlackDeckerIncSWKUSUSD84050100963118822164117141414132438177MakitaCorp6586JPJPY326000052655137510311207121211112208195Snap-OnIncSNAUSUSD2470801030181441461401422927252319326102HusqvarnaAb-BShsHUSQBSSSEK91920385412711801421222221201811932912raMthgiRelbaTSebSaSKFPEUR10570048703184147118105181716141232279TechtronicIndustriesElectroluxAb-BELUXBSSSEK12498026090na2088667211916141043761JsGlobalLifestyleCoLtd01691HKHKD80302806292796905161412na1895249IrobotCorpIRBTUSUSD439609463nananana253339na-28900naNilfiskHoldingASNLFSKDCDKK13400040381201078871191614121631356SimpleAverage159251137107222119169424102WeightedAverage1613031511212522201913027118MainlandChinaListedPeersHangZhouGreatStarIndus-A002444CHCNY19700267091481251031970191614na1320494GlobeJiangsuCoLtd-A301260CHCNY3329018248520202141na976645na320nanaKenHoldingCoLtd-A300126CHCNY62802152nananananananananananaBeijingRoborockTechnolog-A688169CHCNY34735036692273220183963430262113608175EcovacsRoboticsCoLtd-A603486CHCNY8104052299272218177173725847na26915160KingcleanElectricCoLtd-A603355CHCNY2932018976178159133na464036na29746122SimpleAverage2781851477465442332123118138WeightedAverage2351921585634839332120915146CompanyReportSeethelastpagefordisclaimerPage16of19TablePageHeaderTechtronicIndustries00669HKRISKFACTORS1raMthgiRelbaTGlobalrecessionriskThecurrentglobalmacroenvironmentisfacinggreatuncertaintyTheFederalReservescontinuousinterestratehikesinordertocurbinflationmayleadtoglobaleconomicrecessioncurbconsumerdemandinthetoolindustrymarketandmaketheMarch2023Companyscontinuousandstablegrowthtrendunsustainable51IntensifiedmarketcompetitionriskTherearemanycompetitorsinthetoolindustryandtheCompanyfacescompetitionIfcompetitorssignificantlysurpasstheCompanyintermsoftechnologychannelsbrandsetctheCompanysmarketsharemaydeclineUnstabletraderelationsbetweenChinaandtheUnitedStatesSincethetradewarbetweenChinaandtheUnitedStatesbrokeoutin2018theCompanyhasbeguntodeployproduction2raMthgiRelbaTbasesaroundtheworldtospreadtheriskoftradeconflictsHoweverabout50ofthecurrentproductioncapacityisstillconcentratedinChinaCompaniesfaceriskofhighercostsintheeventoffutureinstabilityinUS-Chinatraderelations00669HK创科实业2raMthgiRelbaTTechtronicIndustriesCompanyReportSeethelastpagefordisclaimerPage17of19TablePageHeaderTechtronicIndustries00669HKFinancialStatementsandRatiosTableIncomeStatementTableBalanceSheetIncomeStatement1rBalanceaSheetMthgiRelbaTYearend31DecUSDm2021A2022A2023F2024F2025FYearend31MarchHKm2021A2022A2023F2024F2025FTotalrevenue1320313254139291503416617Propertyplantandequipment18532086253930593671Costofsales80828041841590269912Right-of-useassets553683724768814Goodwill577599617635654512252135514600867058501124119112631339March2023GrossprofitIntangibleassets5Otherincome1314161923Others1132872953033111Sellinganddistributionexpenses21652191230325102801Totalnon-currentassets39464778536660286789Generalandadministrativeexpenses13521350141915311692RDexpenses426484523579657Cashcashequivalents18741429795643371Inventories48501713164819472348Operatingprofit11921201128514061577Tradeandbillsreceivables20222018205826243252Financeincomeandcosts-net1044516952Others3153377452744144425Totalcurrentassets906285379028962810396Profitbeforetax11821157123513371526Incometax83808694107Tradeandbillspayablesotherpaybles40953854410644674956depositsandaccrualsProfitaftertax10991077114812441419Borrowings2253195320122072213400000331415446487534Non-controllinginterestOthers2raMthgiRelbaTShareholdersprofitloss10991077114812441419Totalcurrentliabilities66796222656470267623BasicEPSUSD06000589062506760769Borrowings102811981234127113094960453026OtherPayablesanddepositOthers529629648668688TableCashFlowStatementCashFlowStatementTotalnon-currentliabilities1606188819271969202382858110849189959646TotalliabilitiesYearend31MarchHKm2021A2022A2023F2024F2025F683685709739775Profitbeforetax8611182115712351337Sharecapital40394521519359226764Depreciationamortization40442747181247Sharereservesandretainedearnings00669HK47235205590266607539Changesinworkingcapital-166-1778-332-858-359Totalshareholdersequity00000Incometaxpaid-51-47-137-178-199Minorityinterest47235205590266607539Otheradjustments-1150995-305716180Totalequity创科实业Cashfromoperatingactivities-10177943010961207Capitalexpenditure-459-747-878-1040-1240Otherinvestingactivities-566124150157178Cashfrominvestingactivities-1025-623-729-882-1062TableFinancialRatioFinancialRatios2raMthgiRelbaTNetchangesinborrowings1968-3289699102TechtronicIndustriesDividendspaid-394-425-452-486-541Yearend31March2021A2022A2023F2024F2025FOtherfinancingactivities-101151202122Grossmargin388393396400404Cashfromfinancingactivities1472-602-335-365-417Operatingmargin9091929495Netmargin8381828385Cashatbegofyear346-445-634-152-272ROE255217207198200Netchangesincash-60000ROA10287888890Effectofexchangeratechanges153418741429795643Netgearingratio415466538518510CashatEndofYear18741429795643371SourcetheCompanyGuotaiJunanInternationalCompanyReportSeethelastpagefordisclaimerPage18of19TablePageHeaderTechtronicIndustries00669HKCompanyTableCompanyRatingDefinitionRatingDefinitionTheBenchmarkHongKongHangSengIndex1raMthgiRelbaTTimeHorizon6to18monthsRatingDefinitionBuy买入RelativePerformance15orthefundamentaloutlookoftheCompanyorsectorisfavorableAccumulate收集RelativePerformanceis5to15March2023orthefundamentaloutlookoftheCompanyorsectorisfavorable5Neutral中性RelativePerformanceis-5to51orthefundamentaloutlookoftheCompanyorsectorisneutralReduce减持RelativePerformanceis-5to-15orthefundamentaloutlookoftheCompanyorsectorisunfavorableSell卖出RelativePerformance-15orthefundamentaloutlookoftheCompanyorsectorisunfavorableSectorTableRatingIndustryDefinitionRatingDefinitionTheBenchmarkHongKongHangSengIndexTimeHorizon6to18monthsRatingDefinitionOutperform跑赢大市RelativePerformance52raMthgiRelbaTorthefundamentaloutlookofthesectorisfavorableNeutral中性RelativePerformanceis-5to5orthefundamentaloutlookofthesectorisneutralUnderperform跑输大市RelativePerformance-5orthefundamentaloutlookofthesectorisunfavorableDISCLOSURETableDISCLOSUREOFINTERESTSOFINTERESTS1TheAnalystsandtheirassociatesdonotserveasanofficeroftheissuermentionedinthisResearchReport2TheAnalystsandtheirassociatesdonothaveanyfinancialinterestsinrelationtotheissuermentionedinthisResearchReport3GuotaiJunananditsgroupcompaniesdonotholdequaltoormorethan1ofthemarketcapitalizationoftheissuermentionedinthis00669HKResearchReport4GuotaiJunananditsgroupcompanieshavenothadinvestmentbankingrelationshipswiththeissuermentionedinthisResearchReportwithinthepreceding12months5GuotaiJunananditsgroupcompaniesarenotmakingamarketinthesecuritiesinrespectoftheissuermentionedinthisResearch创科实业Report6GuotaiJunananditsgroupcompanieshavenotemployedanindividualservingasanofficeroftheissuermentionedinthisResearchReportThereisnoofficeroftheissuermentionedinthisResearchReportassociatedwithGuotaiJunananditsgroupcompaniesDISCLAIMER2raMthgiRelbaTTechtronicIndustriesThisResearchReportdoesnotconstituteaninvitationoroffertoacquirepurchaseorsubscribeforsecuritiesbyGuotaiJunanSecuritiesHongKongLimitedGuotaiJunanGuotaiJunananditsgroupcompaniesmaydobusinessthatrelatestocompaniescoveredinresearchreportsincludinginvestmentbankinginvestmentservicesetcforexampletheplacingagentleadmanagersponsorunderwriterorinvestproprietarilyAnyopinionsexpressedinthisreportmaydifferorbecontrarytoopinionsorinvestmentstrategiesexpressedorallyorinwrittenformbysalespersonsdealersandotherprofessionalexecutivesofGuotaiJunangroupofcompaniesAnyopinionsexpressedinthisreportmaydifferorbecontrarytoopinionsorinvestmentdecisionsmadebytheassetmanagementandinvestmentbankinggroupsofGuotaiJunanThoughbestefforthasbeenmadetoensuretheaccuracyoftheinformationanddatacontainedinthisResearchReportGuotaiJunandoesnotguaranteetheaccuracyandcompletenessoftheinformationanddatahereinThisResearchReportmaycontainsomeforward-lookingestimatesandforecastsderivedfromtheassumptionsofthefuturepoliticalandeconomicconditionswithinherentlyunpredictableandmutablesituationsouncertaintymaycontainInvestorsshouldunderstandandcomprehendtheinvestmentobjectivesanditsrelatedrisksandwherenecessaryconsulttheirownfinancialadviserspriortoanyinvestmentdecisionThisResearchReportisnotdirectedatorintendedfordistributiontoorusebyanypersonorentitywhoisacitizenorresidentoforlocatedinanyjurisdictionwheresuchdistributionpublicationavailabilityorusewouldbecontrarytoapplicablelaworregulationorwhichwouldsubjectGuotaiJunananditsgroupcompaniestoanyregistrationorlicensingrequirementwithinsuchjurisdiction2023GuotaiJunanSecuritiesHongKongLimitedAllRightsReserved27FLowBlockGrandMillenniumPlaza181QueensRoadCentralHongKongTel8522509-9118Fax8522509-7793WebsitewwwgtjacomhkCompanyReportSeethelastpagefordisclaimerPage19of19