Daily Investment Strategy
Recommended Stock：TTI（669）
Realtor projects U.S. home prices will rise modestly next year. With the resilient housing demand, investors can pay attention to related stock ideas. Techtronic Industries is mainly engaged in power tools and floor care business, and its core brands include MILWAUKEE and RYOBI. TTI delivered strong 1H24 results, growing sales 6.3% to US$7.3 billion and net profit 15.7% to US$550 million. MILWAUKEE delivered double-digit sales growth and RYOBI outperformed the market. Gross margin improved 67 bps to 39.9% in 1H24. The company has competitive advantages in innovative rechargeable technology and new product development. As many jurisdictions begin to restrict noise and carbon emissions, the demand for the transformation of plug-in products is increasing. Since 2018, the company has expanded its production operations beyond its Chinese production plants and established start-up plants in Vietnam, Mexico and the United States. Diversification of manufacturing facilities enables companies to mitigate supply chain risks amid global decoupling trends. Target price: $118.
US GDP shows healthy growth
The U.S. GDP growth for the third quarter was revised upward from the initially reported 2.8% to 3.1%, primarily driven by a 3.7% increase in personal consumption, which exceeded earlier estimates, along with stronger-than-expected export growth. For the week ending December 14, initial jobless claims in the U.S. decreased by 22,000, totaling 221k, which is lower than the anticipated 230k. Additionally, for the week ending December 7, continuing claims fell by 5,000 to 1,874k, also below the expected 1,890k.
Hong Kong Stock Connect had a net inflow of HK$14.6bn on Thursday of which Tracker Fund (2800) had the largest net inflow, reaching HK$4.0bn; followed by HSCEI ETF (2828). CNOOC (883) recorded the largest net outflow at $0.25bn, followed by GCL TECH (3800).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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