Why are people talking about Techtronic Industries shares today?

The company name might not sound familiar but its products are probably sitting in your shed…
The post Why are people talking about Techtronic Industries shares today? appeared first on The Motley Fool Australia. –

Have you heard whispers of a company called Techtronic Industries Co. Ltd. (HKG: 0669) and wondered what people are talking about? Many ASX investors might not have heard of Techtronic Industries shares prior to today. But a mention in the annual Sohn Hearts & Minds Investment Conference has brought the company into focus.

For starters, we have to explore beyond the realm of the ASX for this one. Rather than being on our local exchange, Techtronic trades on the Stock Exchange of Hong Kong. This might explain why some investors aren’t too familiar with the business. However, if you have done some DIY projects there’s a good chance Techtronic’s products have been in your hands.

So, what is Techtronic, and what is all the fuss about Techtronic Industries shares today?

Putting the power in your hands

While the name Techtronic Industries may not resonate, the company’s brands will likely ring a bell. The US$39 billion power tool and outdoor equipment company encompasses recognisable brands including Milwaukee, AEG, and Ryobi.

In addition, the company operates through brands such as Homelite, Kango, Hoover, and Vax. The common denominator across all of their brands is that their products are cordless. This improves safety and ease of use for everyone from the casual DIYer to the everyday professional.

At today’s Sohn conference, Cooper Investors portfolio manager Qiao Ma has called out Techtronic Industries shares as her pick for 2022. She described it as more of a Silicon Valley company than an industrials company.

Ma said:

Every component that goes into a Techtronic power tools product, every step of the production process has been carefully thought through to make sure they stay at the forefront of technology. Let’s use batteries as an example. As early as 2004, Techtronic migrated its entire toolset into lithium-ion batteries.

The company has experienced an incredible surge in revenue and earnings in the past financial year. In FY21, revenue increased 47% to US$12 billion. Similarly, the company’s net profit ballooned by 50% to US$992.791 million.

The case for Techtronic Industries shares

Ma makes the case for her highest conviction stock pick for 2022. The portfolio manager believes the company’s obsession and focus on a niche industry gives it an edge when it comes to understanding its customers.

Furthermore, in the past year, Techtronic has launched 500 new products. In Ma’s view, this category expansion is limitless and offers a lot of upside in increasing sales.

Speaking of which, the portfolio manager highlighted the company’s ability to grow sales at 13% per year over the past 13 years, stating:

That tells us one thing, that Techtronic is not growing sales by cutting prices and competing on volume, it’s really creating a premium end product and commanding a very healthy product margin.

At the time of writing, Techtronic Industries shares are sitting at $170.30. However, Ma believes it could reach $250 per share within 12 to 18 months.

The post Why are people talking about Techtronic Industries shares today? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Why did the Pan Asia Metals (ASX:PAM) share price surge 10% today?

Can Wesfarmers (ASX:WES) win the battle to take over API?

Here’s why the Critical Resources (ASX:CRR) share price is surging 16% today

Here’s why the Tuas (ASX:TUA) share price is leaping 10% to a record high on Friday

How did the Macquarie (ASX:MQG) share price stack up in November?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!