The Zhitong Finance App learned that Citi released a research report stating that it gave Chuangke Industrial (00669) a target price of HK$168 and a “buy” rating. Company management attended a meeting organized by the bank and reiterated revenue growth expectations for the 2026-2027 fiscal year. Despite the Federal Reserve's interest rate hike, the relevant expectations were not adjusted. The bank expects the company's revenue growth to accelerate from around 7% in FY2026 to around 9% in FY2027.

Citi pointed out that following the divestment of the HART power tools business last year, the consumer business will continue to scale down this year, which may drive the expansion of operating profit margins, or there is room for improvement compared to market consensus. At the same time, the AI data center (AIDC) business may also drive revenue growth beyond market consensus.

In terms of cash flow, the company's free cash flow of at least $1.3 billion this year will support continued dividend growth and support $500 million share repurchases until the end of 2027. The stock has pulled back about 15% over the past 6 weeks, and Citi believes this provides a good time to buy.

Management reiterated the 2027 guidance segment. Among them, the revenue of its own brand, Milwaukee, is expected to increase by 10% to 12%, the revenue growth of the Ryobi brand is in the low to medium unit range, and revenue from other consumer goods businesses remains flat or declined slightly.

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