Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Jehoshaphat Research (JR) argues the case that <strong><a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a></strong> has been engaged in “snowballing” to maintain margin growth.</li>
<li>JR flags TTI is the only public company in the world (with over $1bn in revenues) exhibiting positive sequential gross margin change in every semi-annual period over ten years.</li>
<li>Short interest had been picking up ahead of the short sell report. Shares fell 19% before being suspended in the afternoon session.  </li>
</ul>


Jehoshaphat Research (JR) argues the case that Techtronic Industries (669 HK) has been engaged in “snowballing” to maintain margin growth.
JR flags TTI is the only public company in the world (with over $1bn in revenues) exhibiting positive sequential gross margin change in every semi-annual period over ten years.
Short interest had been picking up ahead of the short sell report. Shares fell 19% before being suspended in the afternoon session.  


Techtronic Industries (669 HK): JR Puts Down That Tool

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

Stanley Black & Decker / Equity Bottom-Up

<ul><li>Stanley Black & Decker delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.</li><li>Stanley Black & Decker generated free cash flow of $1.1 billion, up 36% year-over-year, and returned $1.2 billion to shareholders through dividends and share repurchases.</li><li>We give Stanley Black & Decker a 'Hold' rating with a revised target price.</li></ul>

Stanley Black & Decker delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.Stanley Black & Decker generated free cash flow of $1.1 billion, up 36% year-over-year, and returned $1.2 billion to shareholders through dividends and share repurchases.We give Stanley Black & Decker a 'Hold' rating with a revised target price.

Stanley Black & Decker: Are The $200 Million Cost Savings Enough? – Key Drivers

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Forensic Accounting

Techtronic Industries / Forensic Accounting

<ul>
<li>Following Jehoshaphat’s allegations that profits are inflated dramatically over a decade with manipulative accounting, <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> has issued a rebuttal clarifying that the accusations are without any merit.</li>
<li>TTI's beyond comparison performance is due to world class brands such as Milwaukee, Ryobi and Hoover which have helped top line grow at 13% CAGR over the past 13 years.</li>
<li>Nevertheless, we have assessed some of the company’s clarifications here which seemed too good to be true.</li>
</ul>


Following Jehoshaphat’s allegations that profits are inflated dramatically over a decade with manipulative accounting, Techtronic Industries (669 HK) has issued a rebuttal clarifying that the accusations are without any merit.
TTI's beyond comparison performance is due to world class brands such as Milwaukee, Ryobi and Hoover which have helped top line grow at 13% CAGR over the past 13 years.
Nevertheless, we have assessed some of the company’s clarifications here which seemed too good to be true.


Techtronic’s Rebuttal: Some Clarifications Are Too Good to Be True

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://jehoshaphatresearch.com/wp-content/uploads/669HK-Short-Report-Feb-2023-Jehoshaphat-Research.pdf" target="_blank" rel="noopener">Jehoshaphat's short report</a> has alleged that <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a>/TTI has been inflating its profits dramatically for over a decade with manipulative accounting.</li>
<li>Our forensic analysis of the allegations suggests that some are credible red flags while others are essentially an exaggeration.</li>
<li>TTI’s response to Jehoshaphat is pitiful. Valuation is meaningless until management adopts more conservative accounting or compelling disprove the allegations.</li>
</ul>



Jehoshaphat's short report has alleged that Techtronic Industries (669 HK)/TTI has been inflating its profits dramatically for over a decade with manipulative accounting.
Our forensic analysis of the allegations suggests that some are credible red flags while others are essentially an exaggeration.
TTI’s response to Jehoshaphat is pitiful. Valuation is meaningless until management adopts more conservative accounting or compelling disprove the allegations.


Techtronic Industries (669 HK): Forensic Analysis Viewpoint

<ul>
<li>
<a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> was targeted by Jehoshaphat Research (JR) accusing that the company’s profits are inflated dramatically over a decade with manipulative accounting.</li>
<li>As per the report, routine expenses incurred have been booked under various asset accounts such as deferred development costs thereby showing ever increasing margins for a cyclical business.</li>
<li>We have assessed the merits of some of these claims using our forensic accounting framework and it appears that most of the claims are very difficult to refute.</li>
</ul>



Techtronic Industries (669 HK) was targeted by Jehoshaphat Research (JR) accusing that the company’s profits are inflated dramatically over a decade with manipulative accounting.
As per the report, routine expenses incurred have been booked under various asset accounts such as deferred development costs thereby showing ever increasing margins for a cyclical business.
We have assessed the merits of some of these claims using our forensic accounting framework and it appears that most of the claims are very difficult to refute.


Techtronic Industries: Jehoshaphat Research’s Allegations and Our Assessment

United States

Stanley Black & Decker Inc. is a diversified global provider of hand tools, power tools and related accessories, mechanical access and electronic security solutions, healthcare solutions, engineered fastening systems, and more.

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Stanley Black & Decker (SWK US)

Techtronic Industries (669 HK): JR Puts Down That Tool

Someone had an ax to grind with management. This type of research dost not just appear out of thin air. The static gross margin figures are...

David Blennerhassett

Stanley Black & Decker: Are The $200 Million Cost Savings Enough? – Key Drivers

Stanley Black & Decker delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but...

Baptista Research

Techtronic’s Rebuttal: Some Clarifications Are Too Good to Be True

Following Jehoshaphat’s allegations, TTI has issued a rebuttal clarifying that the accusations are without any merit. we have assessed some of the...

Shifara Samsudeen, ACMA, CGMA

Techtronic Industries (669 HK): Forensic Analysis Viewpoint

Our forensic analysis of the allegations suggests that some are credible red flags while others are essentially an exaggeration. A weak Board...

Arun George

Techtronic Industries: Jehoshaphat Research’s Allegations and Our Assessment

Little known short-seller Jehoshaphat Research has targeted TTI. Most allegations are difficult to refute. Our analysis reveals there is...

Shifara Samsudeen, ACMA, CGMA

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