HK Stock Market Move | CHERVON (02285) rose more than 15% in early trading, with mid-term net profit expected to increase by 5% to 15% year-on-year, exceeding market expectations.

CHERVON (02285) rose more than 15% in the early trading session, up 7.56% at the time of publication, at 20.34 Hong Kong dollars, with a turnover of 107.227 million Hong Kong dollars. On the news front, CHERVON announced a profit announcement, expecting a net profit of approximately 100 million to 110 million US dollars in the first half of the year, compared to a net profit of approximately 95.3 million US dollars in the same period last year, an increase of about 5% to 15%. The profit growth is mainly driven by the steady growth in revenue scale, growth in own-brand product business, high gross margin EGO products, and factors such as tariff refunds. Credit Suisse previously released a research report stating that it is expected that CHERVON will achieve a net profit of 100 million US dollars in the first half of the year, a year-on-year increase of 6%, which is 27% higher than the market forecast. The bank estimates that the company has a chance to turn its core profit into profit in the first half of the year. As for the company's prospects in the second half of the year, they remain positive, with steady end-market sales and relatively healthy channel inventories. Looking at the full year of 2026, the bank expects the company's profit to increase by 43% year-on-year to 140 million US dollars.