1、Asia Pacific Equity Research 15 August 2010 Techtronic Industries Overweight 0669.HK, 669 HK Interim results preview - Building on the DIY market Price: HK$6.11 Price Target: HK$10.00 Previous: HK$11.00 China Industrial Machinery Leon Chik, CFAAC (852) 2800-8590 J.P. Morgan Securities (Asia Pacific
2、) Limited 5.57.08.5HK$Aug-09 Nov-09 Feb-10 May-10 Aug-10Price Performance0669.HK share price (HK$HSI (rebased)YTD 1m 3m 12mAbs -5.9% -6.7% -20.3% -11.4%Rel -2.5% -9.8% -23.5% -12.4%Techtronic Industries (Reuters: 0669.HK, Bloomberg: 669 HK) HK$ in mn, year-end Dec FY08A FY09A FY10E FY11E FY12ERevenu
3、e 26,615 23,985 26,129 30,346 34,798Net Profit 174.8 561.0 887.7 1,302.0 1,729.0EPS (HK$) 0.12 0.37 0.55 0.80 1.06DPS (HK$) 0.06 0.10 0.16 0.24 0.31Revenue growth (%) 7.4% -9.9% 8.9% 16.1% 14.7%EPS growth (%) 44.5% 216.4% 48.3% 46.7% 32.8%ROCE 10.7% 14.3% 15.8% 12.6% 14.5%ROE 2.5% 7.5% 10.6% 14.2% 1
4、6.9%P/E (x) 52.5 16.6 11.2 7.6 5.7P/BV (x) 1.3 1.2 1.1 1.0 0.9EV/EBITDA (x) 5.0 3.9 3.4 4.6 3.9Dividend Yield 1.0% 1.6% 2.6% 3.9% 5.1%Shares O/S (mn) 1,606Market cap (HK$ mn) 9,814Market cap ($ mn) 1,263Price (HK$) 6.11Date Of Price 13 Aug 10Free float (%) 62.3%3-mth trading volume (mn) 373-mth trad
5、ing value (HK$ mn) 1943-mth trading value (US$) ($ mn) 25HSI 21,072Exchange Rate 7.77Fiscal Year End DecSource: Company data, Bloomberg, J.P. Morgan estimates. See page 11 for analyst certification and important disclosures, including non-US analyst disclosures. J.P. Morgan does and seeks to do busi
6、ness with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Remain positi
7、ve despite slump in US Housing stocks: Techtronic Industries (TTI) fell 7.1% last week alongside most US housing related stocks such as homebuilders, Home Depot (HD US) and Stanley Black and (2) no part of any of the research analysts compensation was, is, or will be directly or indirectly related t
8、o the specific recommendations or views expressed by the research analyst(s) in this report. Important Disclosures Analyst Position: The following analysts (and/or their associates or household members) own a long position in the shares of Techtronic Industries: Adrian Mowat. Client of the Firm: Tec
9、htronic Industries is or was in the past 12 months a client of JPMSI; during the past 12 months, JPMSI provided to the company non-investment banking securities-related services and non-securities-related services. Non-Investment Banking Compensation: JPMSI has received compensation in the past 12 m
10、onths for products or services other than investment banking from Techtronic Industries. An affiliate of JPMSI has received compensation in the past 12 months for products or services other than investment banking from Techtronic Industries. 071421Price(HK$)Oct06Jul07Apr08Jan09Oct09Jul10Techtronic I
11、ndustries (0669.HK) Price ChartN HK$10 OW HK$4.3 OW HK$11N HK$9.5 N HK$9.5 N HK$8.7 N HK$4.3 OW HK$8.5Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends.Break in coverage Apr 08, 2009 - Mar 04, 2010. This chart shows J.P. Morgans continuing coverage of this stock;
12、thecurrent analyst may or may not have covered it over the entire period.J.P. Morgan ratings: OW = Overweight, N = Neutral, UW = Underweight.Date Rating Share Price (HK$) Price Target (HK$) 22-Mar-07 N 9.75 9.50 19-Apr-07 N 10.50 10.00 22-Aug-07 N 8.65 9.50 29-Jan-08 N 8.40 8.70 09-Nov-08 N 3.20 4.3
13、0 09-Jan-09 OW 2.95 4.30 04-Mar-10 OW 5.88 8.50 11-May-10 OW 7.76 11.00 Explanation of Equity Research Ratings and Analyst(s) Coverage Universe: J.P. Morgan uses the following rating system: Overweight Over the next six to twelve months, we expect this stock will outperform the average total return
14、of the stocks in the analysts (or the analysts teams) coverage universe. Neutral Over the next six to twelve months, we expect this stock will perform in line with the average total return of the stocks in the analysts (or the analysts teams) coverage universe. Underweight Over the next six to twelv
15、e months, we expect this stock will underperform the average total return of the stocks in the analysts (or the analysts teams) coverage universe. J.P. Morgan Cazenoves UK Small/Mid-Cap dedicated research analysts use the same rating categories; however, each stocks expected total return is compared
16、 to the expected total return of the FTSE All Share Index, not to those analysts coverage universe. A list of these analysts is available on request. The analyst or analysts teams coverage universe is the sector and/or country shown on the cover of each publication. See below for the specific stocks
17、 in the certifying analyst(s) coverage universe. Coverage Universe: Leon Chik, CFA: China Liansu Group Holdings (2128.HK), China Shineway Pharmaceutical Group Limited (2877.HK), Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (1938.HK), Concord Medical Services Holdings Limited (CCM), Evergra
18、nde Real Estate Group (3333.HK), Kingboard Chemical (0148.HK), Kingboard Laminates (1888.HK), Lee our Neutral rating falls into a hold rating category; and our Underweight rating falls into a sell rating category. Valuation and Risks: Please see the most recent company-specific research report for a
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39、 information. Clients should contact analysts and execute transactions through a J.P. Morgan subsidiary or affiliate in their home jurisdiction unless governing law permits otherwise. “Other Disclosures” last revised March 1, 2010. 14 Asia Pacific Equity Research 15 August 2010Leon Chik, CFA (852) 2800-8590 Copyright 2010 JPMorgan Chase & Co. All rights reserved. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.
