Shares of power tool manufacturer CHERVON (HKEX: 02285) experienced a sharp intraday rise exceeding 20%.

At the time of writing, the stock was up 16.33%, trading at HK$19.31 with a turnover of approximately HK$90.04 million.

This positive momentum follows the initiation of a 30-day positive catalyst watch by Citigroup, which upgraded its rating on the stock from "Sell" to "Buy" after a more than 32% decline since late February.

The brokerage anticipates potential catalysts, including double-digit growth in revenue and core profit for the first half of 2026 and optimistic guidance from management in upcoming earnings calls for the latter half of the year.

Furthermore, the company announced a share buyback plan earlier this month, intending to repurchase up to HK$150 million worth of its shares.

Analysts at China Merchants Securities noted that factors such as export tax rebates, infrastructure investments driven by AI development, and the passage of a U.S. real estate stimulus bill are expected to significantly improve the company's sequential revenue and earnings performance.

The firm also highlighted that recent share purchases by company executives and the announced buyback program demonstrate strong confidence, suggesting that second-quarter tool segment performance could surpass market expectations.