Jinwu Financial News | According to the Open Source Securities Research Report, Chuangke Industrial (00669) 2023H2's revenue was US$6.852 billion, up 10.15% year on year, exceeding the forecast. It also surpassed the “middle single digit” growth guidelines announced voluntarily in October 2023. The performance was superior to that of its peers due to its rapid inventory removal process and larger professional power tools in its product structure.
According to the bank, based on the 2023H2 revenue recovery exceeding expectations, the bank raised its 2024/2025 net profit forecast from US$11.38/1.301 billion to US$1,145/1,369 billion US dollars, adding a net profit forecast of US$1.71 billion for 2026, corresponding year-on-year growth rates of 17.3%/19.6%/24.9%, respectively, corresponding to diluted EPS of 0.6, 0.7, and 0.9 US dollars. The current stock prices correspond to 19.2, 16.0, and 12.8 times PE, respectively. The short-term growth of professional power tools is resilient. In the medium term, it is expected to benefit from the recovery of US real estate in 2025, and the long-term acceleration of OPE expansion will drive revenue growth, the high gross margin after-sales battery business will drive an increase in profit margins, and maintain a “buy” rating.