Techtronic Industries Company Limited ("TTI", or the "Company") is a global leader in electric tool industry with competitive advantages. 1) The Company’s multi-brand strategy is able to meet the needs of consumers; its main brands have strong brand competitiveness. 2) The Company has strong technological development; the rechargeable battery system developed by the Company has advantages of strong compatibility, superior performance, and adaptability to complex environments. 3) The Company's battery platform is compatible with a wide variety of products, and its sales model of "bare tool + batteries" offers an ecosystem in the tool industry. 4) The Company is working with Home Depot, the largest home improvement retailer in North America, and has gained channel advantages.
　　The medium- and long-term development prospects of the power tool industry are promising. 1) The power tool industry has rich applications and stable consumer demand. 2) Cordless tools have obvious advantages in ease of use and convenience, and the long-term development trend is positive. 3) As a leader in the industry, the Company's development is superior to that of its peers, and its market share will continue to increase.
　　Initiate with "Accumulate" and a TP of HK$107.30. We forecast the Company's revenue in 2023-2025 to be US$13,929 mn/ US$15,034 mn/ US$16,617 mn, respectively. Our TP represents 22.0x/ 20.4x/ 17.9x 2023-2025 PE ratio and 4.3x 2023 PB ratio.