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Techtronic Industries (669): Overcoming tariff pressures, the company achieved record-breaking performance in 2025. Revenue reached US$15.26 billion, a year-on-year increase of 4.4%; net profit rose 6.8% to US$1.198 billion. Driven by high-margin products, gross margin expanded by 91 basis points to 41.2%. Looking ahead to 2026, the company expects its two core brands to record mid-to-high single-digit growth, although some of this growth will be offset by business restructuring and the exit of some businesses.
The US-Iran conflict continued to escalate
The US-Iran conflict entered its fourth day and continued to escalate. The US and Israel struck targets inside Iran (including nuclear facilities), prompting Iran to retaliate in the Persian Gulf and warn ships against passing through the Strait of Hormuz. This "chokehold" crisis in the Strait of Hormuz triggered market panic, with European benchmark diesel futures surging 34% in two days and international oil prices rising by over 5% at one point. Fears of a rebound in inflation triggered by the Middle East conflict caused market expectations for a Federal Reserve interest rate cut to collapse. The first rate cut expectation was postponed from July to September, and the probability of a second rate cut this year fell to 50%. Federal Reserve officials stated that under the shadow of war, the authorities could choose to remain on hold for rate cut.
On Tuesday, net inflows into Hong Kong stocks via the Stock Connect program totaled HK$6.081 billion. Tencent Holdings (00700) saw the largest inflow at HK$2.56 billion, followed by the Tracker Fund of Hong Kong (02800). Alibaba-W (09988) recorded the largest net outflow at HK$1.21 billion, followed by COSCO Shipping Energy Transportation (01138).
Leung Kai Tong 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/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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