HK Stock Market Move | CHERVON (02285) rose over 9%, expected annual net profit not less than 110 million US dollars, turning loss into profit on a year-on-year basis.

CHERVON (02285) rose more than 9%, up 9.35% as of press time to 18.72 Hong Kong dollars, with a turnover of 827.24 million Hong Kong dollars. On the news front, CHERVON announced a profit improvement, expecting a net profit of approximately $110-120 million in 2024, while in 2023 the net loss was approximately $37.2 million. The adjusted net profit (excluding non-recurring costs related to the positioning adjustment of the Steinheim base in Germany) is expected to be around $135-145 million. According to the announcement, the expected net profit growth is mainly due to a revenue increase of about 25% to 30% from last year, benefited from the end of the channel destocking cycle. The strong performance of the company's flagship brand EGO in end sales further boosted customer orders; as a result of the recovery in scale, optimization of business structure, favorable factors such as exchange rates, and raw material costs, the gross profit margin has improved; and the continuous improvement of operational efficiency.