UBS Report: Intensifying US-China Trade Tensions Drive Industry Consolidation; Recommended Stocks Include TTI, MAN WAH, SHENZHOU

The analyst rating for TECHTRONIC IND (00669.HK) is maintained at "Buy" by HSBC Global Research due to several reasons: 1. Solid Interim Outlook: Despite short-term pressures, the company's interim outlook is considered solid, with forecasts indicating a compound annual growth rate (CAGR) of 7% for revenue and 14% for earnings per share (EPS) from 2024 to 2027. 2. Strong Sell-Through and Restocking Demand: The broker believes that TECHTRONIC IND's sell-through remains strong, and there is expected restocking demand that should enhance growth performance in 2026. 3. Market Share Gains: HSBC Global Research is optimistic that TECHTRONIC IND will continue to gain market share even in an uncertain trade environment. 4. Potential Margin Expansion: There is an expectation that margin expansion may accelerate starting next year, which could positively impact the company's financial performance. Although the target price was trimmed from $112 to $108 and short-term challenges were acknowledged, the overall outlook remains positive, justifying the "Buy" rating.