Daiwa has issued a research report raising CHERVON's (02285) target price from HK$11 to HK$25, reflecting the company's first-half performance that significantly exceeded expectations. The rating has been upgraded to outperform, with core earnings per share forecasts for 2025-2027 raised by 121.8%, 46.1%, and 34.2% respectively, while revenue forecasts have been increased by 17.3%, 17.6%, and 17.8%.

CHERVON recently held an investor day, presenting a development strategy centered on its high-margin EGO brand. Management expects that Vietnam production capacity will be able to meet 60% of export demand to the United States by the end of this year, which should help alleviate market concerns about long-term tariff impacts and competition.

Daiwa noted that it had significantly downgraded CHERVON's forecasts following the Trump administration's announcement of reciprocal tariff measures in April this year, primarily due to CHERVON having the highest concentration of China-based production among the companies in its coverage universe.