HK Stock Market Move | CHERVON (02285) surged over 6% in the afternoon as Galli, a legendary figure in the power tool industry, joins, with HSBC bullish on the positive impact he will bring.

CHERVON (02285) rose over 6% in the afternoon. As of press time, it was up 5.37% at HK$27.46, with a turnover of HK$37.2561 million. On the news front, Joseph Galli Jr, former CEO of TECHTRONIC IND, joined CHERVON on September 10 as its new CEO, while founder Pan Longquan will remain as Chairman. HSBC believes that during Galli's tenure at Techtronic from 2008 to 2024, Techtronic's revenue and net profit recorded compound annual growth rates of 9.5% and 27.7% respectively, and believes his experience can bring a positive impact to Chervon. Morgan Stanley released a research report stating that it raised CHERVON's target price from HK$20 to HK$22.5, maintaining a "Market Perform" rating, mainly reflecting improved margin prospects driven by a notable recovery in gross margin in the first half of 2026. The bank believes that the company's diversified brand portfolio and channel expansion are conducive to long-term market share and profit growth, but the recovery of the DIY segment remains uncertain, and given the stock price's recent rebound from lows, the current valuation is reasonable.