CHERVON (02285) has announced a positive profit alert. The group expects to achieve a net profit for the six months ending June 30, 2026, in the range of approximately $100 million to $110 million. This represents an increase of about 5% to 15% compared to the net profit of around $95.3 million recorded in the same period last year.
The group anticipates that there will be no non-Hong Kong Financial Reporting Standards adjustments during the reporting period. Consequently, the adjusted net profit measured under non-Hong Kong Financial Reporting Standards for the reporting period is expected to be equal to the reported net profit. This figure is projected to increase by approximately 32% to 45% compared to the adjusted net profit of about $76 million measured under the same standards for the corresponding period last year.
The anticipated positive growth in net profit during the reporting period is primarily driven by several key factors. These include: (i) robust growth in revenue scale, particularly from the company's own-brand product business; (ii) the high gross profit margin contributed by EGO products; and (iii) benefits from tariff rebates.
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