Chervon (02285) saw its stock price surge by 6% during Tuesday's trading session, as investors responded positively to the company's strategic plans to address U.S. tariffs on Chinese goods.
According to a research report by Daiwa Capital Markets, based on a non-deal roadshow with Chervon's chairman and CEO, the Chinese tool manufacturer is taking proactive measures to mitigate the impact of U.S. tariffs. The company plans to accelerate its capacity relocation to Vietnam, aiming for 30% of its group-wide capacity to be based there by the end of 2025. Additionally, Chervon is working with channel partners to share approximately half of the extra tariff burden, demonstrating a collaborative approach to managing these challenges.
Despite these positive initiatives, Daiwa Capital Markets has adjusted its outlook for Chervon. The brokerage has lowered its 2025-2026 earnings forecasts for the company by 6%-18% to reflect assumptions of additional tariffs and efficiency losses related to the relocation efforts. Consequently, they have reduced the stock's target price to HK$26.00 from HK$28.00. However, it's worth noting that Daiwa maintains a buy rating on Chervon, signaling continued confidence in the company's long-term prospects despite near-term headwinds.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。