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Chervon Holdings Limited (HK:2285)
:2285
Hong Kong Market
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Chervon Holdings Limited (2285) AI Stock Analysis

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HK:2285

Chervon Holdings Limited

(2285)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
HK$19.50
▼(-0.20% Downside)
Action:Downgraded
Date:03/27/26
The score is supported by improving cash flow and manageable leverage, plus a moderate P/E and very high dividend yield. Offsetting these positives, technical indicators are weak (price below major moving averages and negative MACD), and fundamentals still show meaningful revenue and earnings volatility.
Positive Factors
Improved Cash Generation
The material turnaround in operating cash flow and strong free cash flow (free cash flow up ~58.9% YoY in 2025) indicates the company now converts profits into cash more reliably. That supports durable funding for capex, working capital, dividends, and reduces refinancing risk over the medium term.
Negative Factors
Revenue Volatility
Large swings in annual revenue reduce predictability for resource allocation and make margin and earnings durability harder to rely on. Structural exposure to cyclical end markets or uneven channel demand can constrain long-term planning, capital allocation and confidence in sustained growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
The material turnaround in operating cash flow and strong free cash flow (free cash flow up ~58.9% YoY in 2025) indicates the company now converts profits into cash more reliably. That supports durable funding for capex, working capital, dividends, and reduces refinancing risk over the medium term.
Read all positive factors

Chervon Holdings Limited (2285) vs. iShares MSCI Hong Kong ETF (EWH)

Chervon Holdings Limited Business Overview & Revenue Model

Company Description
Chervon Holdings Limited operates as a global entity, deeply involved in the complete lifecycle of power tools, outdoor power equipment, and related merchandise. Its activities range from research and development, through manufacturing and quality...
How the Company Makes Money
Chervon makes money primarily by selling power tools and outdoor power equipment, along with related accessories, batteries, chargers, and consumables. Revenue is generated through (1) branded product sales, where the company markets products unde...

Chervon Holdings Limited Financial Statement Overview

Summary
Financials show a clear recovery from the 2023 downturn: profitability returned in 2024 and remained positive in 2025, operating cash flow and free cash flow improved strongly in 2024–2025, and leverage is manageable with debt trending down. The main constraint is inconsistent revenue and earnings across years, which weakens confidence in durability of margins and growth.
Income Statement
62
Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.63B1.77B1.37B1.99B1.76B
Gross Profit535.88M615.68M386.70M604.17M494.32M
EBITDA136.29M199.71M-2.57M244.45M184.43M
Net Income97.60M112.47M-37.12M139.44M144.49M
Balance Sheet
Total Assets1.84B1.99B1.80B1.86B2.06B
Cash, Cash Equivalents and Short-Term Investments398.69M328.76M296.34M486.73M703.02M
Total Debt295.02M309.48M336.02M351.54M456.88M
Total Liabilities825.97M955.60M835.76M916.40M1.26B
Stockholders Equity1.02B1.04B960.73M946.19M797.02M
Cash Flow
Free Cash Flow154.25M93.95M-261.95M-49.15M77.02M
Operating Cash Flow227.91M167.68M-173.64M23.08M158.14M
Investing Cash Flow4.31M-70.42M-57.94M-116.50M-58.87M
Financing Cash Flow-182.26M-60.81M61.08M-104.12M399.39M

Chervon Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.54
Price Trends
50DMA
17.07
Positive
100DMA
18.20
Positive
200DMA
19.53
Negative
Market Momentum
MACD
0.68
Positive
RSI
59.70
Neutral
STOCH
28.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2285, the sentiment is Positive. The current price of 19.54 is above the 20-day moving average (MA) of 18.16, above the 50-day MA of 17.07, and above the 200-day MA of 19.53, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 28.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2285.

Chervon Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$14.16B19.1313.39%3.23%8.72%12.71%
73
Outperform
HK$32.05B8.4014.78%3.32%9.96%7.15%
70
Outperform
HK$9.23B13.0911.01%1.57%0.33%-23.24%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
HK$964.76M8.254.79%7.16%-5.00%-24.22%
60
Neutral
HK$9.71B12.809.65%8.66%-8.30%-13.14%
51
Neutral
HK$1.82B7.58-69.18%-10.60%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2285
Chervon Holdings Limited
18.67
1.27
7.29%
HK:0057
Chen Hsong Holdings
1.52
>-0.01
-0.26%
HK:0658
China High Speed Transmission Equipment Group Co
1.17
-0.06
-4.88%
HK:1882
Haitian International Holdings
20.22
-0.55
-2.64%
HK:1286
Impro Precision Industries Limited
7.13
3.92
122.33%
HK:2155
Morimatsu International Holdings Company Limited
7.66
0.63
8.95%

Chervon Holdings Limited Corporate Events

Chervon flags higher first-half profit on stronger branded sales and EGO margins
Jul 16, 2026
Chervon Holdings has issued a positive profit alert, telling investors it expects unaudited net profit for the first half of 2026 to come in between US$100 million and US$110 million, up from US$95.3 million a year earlier. The group also forecast...
Chervon Holdings Appoints New Joint Company Secretary as Governance Team Shifts
Jun 26, 2026
Chervon Holdings Limited has announced a change in its corporate governance team, with joint company secretary Ms. Lai Siu Kuen resigning due to adjustments to her working arrangements and Ms. Ma Hoi Ki being appointed as the new joint company sec...
Chervon launches HK$150 million share buyback to boost shareholder value
Jun 8, 2026
Chervon Holdings Limited has launched a share repurchase programme authorising buybacks of up to HK$150 million worth of shares on the open market between June 8, 2026 and December 31, 2026, under its existing repurchase mandate. The company will ...
Chervon Trustee Buys Additional Shares for Incentive Scheme
May 28, 2026
Chervon Holdings Limited, a Hong Kong–incorporated power tools and equipment group listed on the city’s stock exchange, operates through multiple subsidiaries and serves international markets. Its shares are held in part by a trustee s...
Chervon Shareholders Approve All AGM Resolutions, Declare 2025 Final Dividend
May 18, 2026
Shareholders of Chervon Holdings Limited approved all resolutions at the annual general meeting held on 18 May 2026, including the reception of the 2025 audited financial statements and the declaration of a final dividend of HK$0.4469 per share. T...
Chervon Calls 2026 AGM With Dividend, Director Votes and Capital Mandates on Agenda
Apr 24, 2026
Chervon Holdings Limited has called its annual general meeting for 18 May 2026 in Nanjing, where shareholders will review the audited financial statements for the year ended 31 December 2025 and vote on a proposed final dividend of HK$0.4469 per s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 27, 2026