HK Stock Market Move | CHERVON (02285) rises over 3% again as a series of major senior management appointments take effect; Daiwa is bullish on the company's new executive team.

CHERVON (02285) rose over 3% again, with a cumulative gain of nearly 55% since September 11. As of press time, it was up 3.21% at HK$30.88, with a turnover of HK$13.292 million. On the news front, on September 10, Joseph Galli Jr, former CEO of TECHTRONIC IND, joined CHERVON as its new CEO. Within the following two to three weeks, Galli recruited and promoted four key senior executives for the North American business, three of whom had previously worked together at Techtronic's Milwaukee business. Daiwa noted that Galli is building his team and replicating his previous playbook, investing in professional user research and jobsite marketing to build customer trust and brand penetration. The bank expects Galli to announce action plans in the coming months for core outdoor power equipment brand EGO, as well as power tool brands FLEX and SKIL, and anticipates that the company will introduce an option plan for Galli and his team tied to revenue/profit growth and channel milestones. If FLEX products and channels improve under his leadership, the bank believes the brand has an opportunity to return to Lowe's retail channels, driving rapid revenue growth.