0516 GMT - Chervon Holdings' earnings may face pressure due to higher U.S. tariffs, Citi analysts write in a note. The brokerage cuts the power tool manufacturer's earnings estimates by 12% for 2025, with the U.S. raising tariffs to 104% from 54% on Chinese goods. The company has been working to shift production facilities to Vietnam from China but that may take time, Citi says. The company's management guides that around 40% of business targeted for the U.S. will be manufactured in Vietnam by the end of the year and may boost this ratio to 100% by 2027. However, Citi reckons that this would be too late to offset the earnings risk in 2025 and 2026. It cuts the rating on the stock to sell from neutral and lowers the target price to HK$8.0 from HK$21.0. Shares last at HK$11.42. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
April 09, 2025 01:16 ET (05:16 GMT)
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