HK Stock Market Move | CHERVON (02285) rises nearly 5% in the afternoon, the company's turning point in business operation has appeared, and domestic demand for house repair and maintenance is expected to surge.

CHERVON (02285) rose by nearly 5% in the afternoon, rising by 4.71% at the time of drafting to HK$20.25, with a trading volume of HK$197.545 million. Founder pointed out that CHERVON is a global leading supplier of power tools and outdoor power equipment (OPE). The company's overall performance is relatively stable, with the pressure on revenue and profits in the short term due to large customers reducing inventory in 2023. From January to April 2024, benefiting from favorable weather conditions and effective promotion activities, the company's sales have returned to positive growth year-on-year, and the turning point in operations has emerged. The bank also pointed out that the global market for power tools & OPE is growing steadily, with CHERVON's market share rapidly increasing. On the product side, CHERVON leads in battery platform technology, continuously launching new products to expand platform compatibility. On the channel side, the cooperation with the largest customer Lowe's is solid, and the e-commerce channel is growing rapidly. Huafu Securities pointed out that a large number of middle-class families in the United States live in suburban villas, and due to the relatively high labor costs in the United States, consumers have a high demand for DIY home repairs, furniture making, and gardening. After the peak in new home sales in China, as the age of homes increases and labor costs in China rise, it is expected that there will also be a demand for home repairs and DIY in China. Therefore, companies in the electric tool industry in China, such as CHERVON, are worth paying attention to.