HK Stock Market Move | CHERVON (02285) rose nearly 9% in morning trading and has gained over 75% since the new president took office; management recruitment efforts will continue.

CHERVON (02285) rose nearly 9% in morning trading and has gained over 75% cumulatively since September 10. As of press time, it is up 6.31% at HK$34.72, with a turnover of HK$44.314 million. On the news front, on September 10, Joseph Galli Jr, former CEO of Techtronic Industries, joined CHERVON as its new CEO, and within one month of taking office he has recruited 8 key management personnel. Daiwa noted that this round of recruitment focuses on sales capabilities in the western U.S. states and with strategic customers, while also covering the Canadian market. The bank expects Galli's recruitment efforts to continue, with the next phase likely shifting focus to the European market. Guotai Haitong noted that after taking office, Galli quickly recruited or promoted multiple senior managers for CHERVON's North American business, many of whom share a background of working together in Techtronic Industries' Milwaukee business. We believe the positive impact of his joining on the company is reflected in: raising the brand ceiling; modernizing the governance structure; and deepening understanding of North American channels and professional customer groups.