HK Stock Market Move | CHERVON (02285) rises over 4%; the path for sustainable re-rating events is clear; Daiwa raises target price to HK$40.

CHERVON (02285) rose over 4%, up 4.08% as of press time, at HK$30.1, with a turnover of HK$38.8181 million. On the news front, on September 10 this year, Joseph Galli Jr, former CEO of TECHTRONIC IND, joined CHERVON as the new CEO, while founder Pan Longquan will remain as Chairman. Daiwa noted that Galli subsequently recruited and promoted four key senior executives for the North American business within two to three weeks, three of whom had previously worked together at Techtronic's Milwaukee business. The bank believes the path for sustainable re-rating events is clear, including the new CEO's blueprint and option plan, as well as the turnaround of professional power tool brand FLEX in the US market. Daiwa raised CHERVON's 2027 to 2028 earnings per share forecasts by 3% to 4%, and due to stronger revenue growth prospects, raised the target price-to-earnings ratio from 10x to 15x, applied to 2027 earnings per share, raising the 12-month target price from HK$24.5 by approximately 63.3% to HK$40, reiterating the "Buy" rating.