CLSA has released a research report stating that the management of Techtronic Industries (00669) expects demand to remain strong in the second half of the year, particularly in the professional business segment. Milwaukee's exposure to services, maintenance, and high-growth verticals can offset sensitivity to the housing cycle.

The firm maintains its "Outperform" rating on Techtronic with a target price of HK$134, believing the company is a major beneficiary of rising penetration of cordless power tools.

The report notes that AIDC now accounts for approximately 10% of the group's revenue, growing about 20% year-on-year, which can provide a structural growth runway.

Additionally, management expects the operating profit margin to gradually reach 11% to 12% in the medium term, while maintaining investment in research and development as well as frontline resources.

The firm anticipates that dividend growth will outpace earnings growth, complemented by the existing US$500 million buyback program, with potential for additional capital returns.