CHERVON (02285) continued its upward momentum in Wednesday's session, climbing 3.50% to HK$26.06 by the afternoon, with trading volume reaching HK$72.28 million. The stock has now advanced more than 30% over the past three trading days.
The recent rally follows the company's September 10 evening announcement appointing Joseph Galli Jr. as Chief Executive Officer, effective immediately. Founder Pan Longquan has stepped down from the CEO role but will remain as Executive Director and Chairman. Galli brings extensive industry experience, having spent 19 years at Stanley Black & Decker (SWK), where he rose to lead the global power tools and accessories division and successfully launched the DeWalt brand's heavy-duty power tool lineup. Between 2008 and 2024, he served as CEO and Executive Director at Techtronic Industries, where he enhanced the global sales potential of the Milwaukee and Ryobi brands.
In the first half of this year, CHERVON generated approximately US$1.029 billion in revenue, representing a 12.8% year-on-year increase. The company's gross margin expanded from 33.3% to 39.3%, while adjusted net profit reached approximately US$106 million, up 39.9% from the prior-year period.
According to a research note from Western Securities, channel inventories have fallen to historically low levels heading into 2026. Combined with the completion of production ramp-up in Vietnam and the elimination of supply bottlenecks, revenue growth now has natural support. The brokerage noted that the 2026 interim results have already validated this trajectory, significantly raising the certainty of full-year earnings recovery.
Comments