Daiwa: Reiterates "Buy" Rating on CHERVON (02285), Target Price HK$40, Expects Valuation Re-rating in the Coming Months

Daiwa released a research report reiterating its "Buy" rating on CHERVON (02285) with a target price of HK$40. The bank believes that CHERVON will see a clear valuation re-rating in the coming months. On October 5, CHERVON announced that its North American business will appoint 4 new senior executives, all of whom previously worked at TECHTRONIC IND (00669)/Milwaukee for more than 10 years. With this, Joe Galli, the former Chief Executive of TECHTRONIC IND who recently joined CHERVON, has recruited 8 key management personnel within one month. This round of recruitment focuses on sales capabilities in the western U.S. states and strategic customers, while also covering the Canadian market. The bank expects Joe Galli's recruitment efforts to continue, with the next phase likely shifting focus to the European market.