HK Stock Market Move | TECHTRONIC IND(00669) rose by more than 8%, Morgan Stanley is optimistic about its growth potential in the AIDC sector.

TECHTRONIC IND (00669) rose more than 8%, rising 8.3% to 124 Hong Kong dollars as of press time, with a turnover of 813 million Hong Kong dollars. On the news front, J.P. Morgan released a research report stating that TECHTRONIC IND's layout in the field of Artificial Intelligence Data Centers (AIDC) and related infrastructure is becoming a structural, multi-year growth driver, the importance of which has surpassed traditional US housing-related businesses. The bank believes that the market's lukewarm response to the industry distribution disclosed for the first time by the company in Milwaukee indicates a reluctance to reevaluate its value, but this situation is expected to change in the coming years. The bank has raised TECHTRONIC IND's target price from 162 Hong Kong dollars to 176 Hong Kong dollars, maintaining a "buy" rating. The report points out that AIDC projects not only require large-scale construction of new data centers, but also require large-scale upgrades of power grids, transmission, and supporting facilities, creating a potential market of trillions of RMB for contractors, equipment, and productivity solutions. Quanta Services' record backlog of orders and investment in AIDC projects, as well as competitors such as Stanley Agriculture Group's SWK and Makita explicitly seeing AIDC as a growth driver, all confirm the size and sustainability of this opportunity.