Chervon Holdings Limited (2285) AI Stock Analysis

• Market Cap: HK$11.13B
• Dividend Yield: 8.67%
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.83
• Revenue Growth: 28.34%
• EPS Growth: N/A
• Country: HK
• Employees: 6,481
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.48
• Shares Outstanding: 511,053,800
• 10 Day Avg. Volume: 774,171
• 30 Day Avg. Volume: 2,018,698
• PEG Ratio: -0.03
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 12.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$19.50
• Price Target Upside: -10.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: HK$24.50 ▲(12.49% Upside)

Chervon Holdings Limited's overall stock score is driven by its strong financial performance and attractive valuation. The company has shown significant revenue growth and improved profitability, with a healthy balance sheet. The low P/E ratio and high dividend yield enhance its appeal. Technical indicators suggest a neutral trend, with potential for upward movement if momentum improves.

Chervon Holdings Limited Business Overview & Revenue Model

Company Description

Chervon Holdings Limited (2285) is a global leader in the design and manufacturing of power tools and outdoor equipment. The company operates primarily in the power tools sector, offering a wide range of products including electric and cordless tools, garden equipment, and accessories. With a strong emphasis on innovation and technology, Chervon caters to both professional tradespeople and DIY enthusiasts, aiming to deliver high-quality and reliable solutions to meet diverse customer needs.

How the Company Makes Money

Chervon Holdings Limited generates revenue primarily through the sale of its power tools and outdoor equipment, which are distributed through various channels including retail, online platforms, and direct sales to professional contractors. Key revenue streams include sales of branded products under its own labels as well as partnerships with other brands. The company has established significant partnerships with major retailers and distributors, which enhances its market reach and drives sales growth. Additionally, Chervon invests in research and development to innovate new products and improve existing ones, thereby attracting a broader customer base and increasing overall sales.

Chervon Holdings Limited Financial Statement Overview

Summary

Chervon Holdings Limited demonstrates a solid recovery with strong revenue growth and improved profitability margins. The balance sheet shows a healthier leverage position, although historical volatility in profit and cash flow metrics suggests areas for cautious monitoring. The company is on a positive trajectory, but maintaining consistency and managing leverage will be key to sustaining its financial health.

Income Statement

Chervon Holdings Limited has demonstrated strong revenue growth, increasing from $840 million in 2019 to $1.77 billion in 2024, indicating a robust growth trajectory. The company has improved its EBIT and EBITDA margins into positive territory after a challenging period in 2023. The net profit margin has also shown recovery, turning from negative to positive in 2024. However, the volatility in EBIT and net income in previous years suggests some operational challenges that need to be continuously managed.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio improving from 2.05 in 2019 to 0.30 in 2024, indicating a significant reduction in leverage. The equity ratio has also improved, reflecting better asset management and reduced liability dependence. However, the debt levels, while reduced, still pose a potential risk if market conditions worsen.

Cash Flow

Chervon Holdings has shown a significant improvement in free cash flow, turning positive in 2024 after a negative period. The operating cash flow to net income ratio indicates strong cash generation relative to net income. However, historical volatility in cash flows, including a period of negative free cash flow, suggests potential risk in cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.77B	1.37B	1.99B	1.76B	1.20B
Gross Profit	650.94M	615.68M	386.70M	604.17M	494.32M	368.57M
EBITDA	259.27M	199.71M	-2.57M	244.45M	184.43M	99.97M
Net Income	146.17M	112.47M	-37.12M	139.44M	144.49M	44.34M
Balance Sheet
Total Assets	1.82B	1.99B	1.80B	1.86B	2.06B	1.09B
Cash, Cash Equivalents and Short-Term Investments	495.09M	328.76M	296.34M	486.73M	703.02M	172.31M
Total Debt	331.65M	309.48M	336.02M	351.54M	456.88M	355.18M
Total Liabilities	817.97M	955.60M	835.76M	916.40M	1.26B	807.44M
Stockholders Equity	1.01B	1.04B	960.73M	946.19M	797.02M	259.74M
Cash Flow
Free Cash Flow	197.28M	93.95M	-261.95M	-49.15M	77.02M	102.13M
Operating Cash Flow	305.20M	167.68M	-173.64M	23.08M	158.14M	133.68M
Investing Cash Flow	-28.87M	-70.42M	-57.94M	-116.50M	-58.87M	-15.65M
Financing Cash Flow	-175.00M	-60.81M	61.08M	-104.12M	399.39M	-50.41M

Chervon Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.78
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2285, the sentiment is Neutral. The current price of 21.78 is above the 20-day moving average (MA) of 21.65, above the 50-day MA of 21.60, and above the 200-day MA of 16.63, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 16.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2285.

Chervon Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1133	78 Outperform	€29.72B	12.43	15.06%	1.85%	34.78%	98.79%
1286	76 Outperform	€8.59B	12.51	14.15%	3.51%	2.87%	17.03%
2285	74 Outperform	HK$11.13B	9.76	14.64%	8.67%	28.34%	―
2722	68 Neutral	€7.07B	11.38	7.29%	2.06%	11.18%	46.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0187	56 Neutral	HK$6.35B	1,388.10	-0.45%	―	3.13%	80.99%
0658	51 Neutral	HK$2.88B	―	-69.18%	―	-4.88%	-860.80%

Chervon Holdings Limited Corporate Events

Chervon Holdings Announces Conditional Special Dividend Update

Chervon Holdings Limited has announced an update regarding a conditional special dividend of HKD 1.1905 per share, contingent upon meeting specific conditions outlined in a previous transaction announcement. The shareholders’ approval is scheduled for May 22, 2025, with the ex-dividend date set for May 26, 2025, and payment to be made on June 23, 2025. This announcement reflects Chervon’s commitment to delivering value to its shareholders, potentially enhancing its market position and stakeholder confidence.

Chervon Holdings to Discuss Equity Transfer and Special Dividend

Chervon Holdings Limited has announced an extraordinary general meeting to be held on May 22, 2025, to discuss and vote on key resolutions. These include the approval of an Equity Transfer Agreement involving Chervon Precision Technology Holdings Company Limited and Chervon (China) Investment Co., Ltd, as well as the declaration of a special dividend of HK$1.1905 per share, contingent upon certain conditions. The meeting’s outcomes could significantly impact the company’s financial strategy and shareholder returns.

Chervon Holdings Delays Circular Dispatch for Transaction Details

Chervon Holdings Limited, a company incorporated in Hong Kong, has announced a delay in the dispatch of a circular related to a discloseable and connected transaction. The circular, which includes details on a disposal and special dividend, was initially expected to be sent to shareholders by April 25, 2025, but has been postponed to on or before May 9, 2025 due to additional time needed to prepare the necessary information.

Chervon Holdings Limited Announces 2025 AGM Agenda

Chervon Holdings Limited has announced its upcoming annual general meeting scheduled for May 22, 2025, in Nanjing, China. Key agenda items include the approval of the audited financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of KPMG as auditors. Additionally, the meeting will consider resolutions to authorize the board to buy back shares and issue new shares, reflecting the company’s strategic focus on maintaining flexibility in its capital management.

Chervon Holdings Reports Strong Financial Turnaround in 2024

Chervon Holdings Limited reported a significant financial turnaround in 2024, with a 29% increase in revenue to US$1,773.8 million and a net profit of US$112.7 million, compared to a net loss in 2023. The company’s strong performance was driven by enhanced operational efficiency, favorable market conditions, and a successful product strategy, particularly in the EGO brand, which has expanded its market share and strengthened its competitive position through innovation and strategic execution.

Chervon Holdings Announces Final Dividend for 2024

Chervon Holdings Limited has announced a final cash dividend of HKD 0.6258 per share for the year ended December 31, 2024. This announcement reflects the company’s financial health and commitment to returning value to its shareholders. The dividend will be paid on June 23, 2025, following shareholder approval on May 22, 2025. The ex-dividend date is set for May 26, 2025, with a record date of May 29, 2025. This decision underscores Chervon’s stable position in the market and its ongoing efforts to maintain shareholder confidence.

Chervon Holdings to Propose Amendments to Articles of Association

Chervon Holdings Limited has announced its intention to propose amendments to its Articles of Association at the upcoming 2025 annual general meeting. These changes aim to align with updated legal and regulatory requirements, including those related to treasury shares and electronic corporate communications, following recent amendments to the Listing Rules and Companies Ordinance in Hong Kong.

Chervon Holdings Announces Major Asset Disposal and Special Dividend

Chervon Holdings Limited has announced a significant transaction involving the sale of its entire equity interest in a target company for RMB570 million. This transaction is classified as both a discloseable and connected transaction under Hong Kong’s Listing Rules, necessitating independent shareholder approval. Additionally, the company proposes a special dividend of HK$1.1905 per share, contingent upon the completion of this disposal, which could lead to a distribution of approximately HK$608.4 million to shareholders. This move is part of Chervon’s strategic efforts to optimize its asset portfolio and enhance shareholder value.

Chervon Holdings Limited Announces Conditional Special Dividend

Chervon Holdings Limited has announced a conditional special dividend of HKD 1.1905 per share. The dividend is contingent upon the satisfaction of certain conditions outlined in a previous transaction announcement. Details such as the ex-dividend date, record date, and payment date are yet to be announced, indicating a future update for shareholders and stakeholders.

Chervon Holdings Schedules Board Meeting for Financial Review

Chervon Holdings Limited has announced that its board of directors will convene on March 26, 2025, to review and approve the company’s financial results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and address any other business matters. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting investor confidence and market positioning.