Yamato: Raised target price for CHERVON (02285) to HK$25, positive feedback from investor day.

Daiwa released a research report stating that it has raised the target price of CHERVON (02285) from HK$11 to HK$25, reflecting Quanfeng's first half performance far exceeding expectations. The rating has been upgraded to outperform the market, and the core earnings per share forecast for 2025 to 2027 has been raised by 121.8%, 46.1% and 34.2%, while revenue forecast has been raised by 17.3%, 17.6% and 17.8%. Quanfeng recently held an investor day, proposing a development strategy focused on the high-profit EGO brand core. The management expects that by the end of this year, Vietnamese production capacity will be able to meet 60% of the product demand exported to the United States, which is believed to help alleviate concerns about long-term tariffs and competition in the market. Daiwa stated that after the Trump administration announced tariff measures in April this year, it significantly lowered its forecast for Quanfeng, mainly due to the highest concentration of Chinese production among rated companies in the bank.