Chervon Holdings (02285) rose more than 6% in afternoon trading. As of press time, the stock was up 5.37% at HK$27.46, with a turnover of HK$37.2561 million.

On the news front, former Techtronic Industries Chief Executive Officer Joseph Galli Jr. joined Chervon Holdings (02285) as its new Chief Executive Officer on September 10, while founder Pan Longquan will remain as Chairman.

HSBC believes that during Galli's tenure at Techtronic Industries from 2008 to 2024, the company recorded compound annual growth rates of 9.5% in revenue and 27.7% in net profit, and his experience is expected to bring a positive impact to Chervon.

Morgan Stanley released a research report stating that it has raised the target price for Chervon Holdings (02285) from HK$20 to HK$22.5, maintaining a "Market Perform" rating, mainly reflecting improved margin prospects driven by a significant rebound in gross margin in the first half of 2026. The bank believes that the company's diversified brand portfolio and channel expansion are conducive to long-term market share and profit growth, but the recovery in the DIY segment remains uncertain, and given the stock price's recent rebound from lows, the current valuation is reasonable.