Chervon Holdings Limited (2285) AI Stock Analysis

• Market Cap: HK$10.34B
• Dividend Yield: 8.45%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.84
• 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: 1,023,914
• 30 Day Avg. Volume: 1,813,067
• 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$25.46
• Price Target Upside: 26.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: HK$24.50 ▲(21.65% Upside)

Chervon Holdings Limited's overall score is driven by strong financial performance and attractive valuation metrics. The company's robust revenue growth and improved leverage position are significant strengths. However, technical indicators suggest caution in the short term due to bearish momentum. The absence of earnings call data and corporate events does not affect the score.

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: Negative
• Last Price: 20.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2285, the sentiment is Negative. The current price of 20.14 is below the 20-day moving average (MA) of 20.89, below the 50-day MA of 21.63, and above the 200-day MA of 17.06, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 43.51 is Neutral, neither overbought nor oversold. The STOCH value of 68.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2285.

Chervon Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1286	―	€9.06B	13.20	14.15%	3.39%	2.87%	17.03%
2285	―	HK$10.34B	9.07	14.64%	8.45%	28.34%	―
1133	―	HK$29.50B	12.34	15.06%	1.87%	34.78%	98.79%
2722	―	€6.30B	10.14	7.29%	2.08%	11.18%	46.57%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0187	―	HK$6.06B	1,388.10	-0.45%	―	3.13%	80.99%
0658	―	$2.86B	-0.43	-69.18%	―	-4.88%	-860.80%

Chervon Holdings Limited Corporate Events

Chervon Holdings Limited Reports Strong First Half 2025 Financial Results

Chervon Holdings Limited reported strong financial performance for the first half of 2025, with an 11.9% increase in revenue to US$912.4 million and a 54.6% rise in net profit. The growth was driven by robust sales of high-margin EGO products, favorable exchange rates, and a non-recurring gain from the disposal of a subsidiary. Despite a decline in the power tools segment, the outdoor power equipment segment saw a 22.8% revenue increase. The company introduced about 100 new products, with a focus on lithium-ion battery-powered items, and continued to expand its market share in North America and Europe.

The most recent analyst rating on (HK:2285) stock is a Sell with a HK$14.50 price target. To see the full list of analyst forecasts on Chervon Holdings Limited stock, see the HK:2285 Stock Forecast page.

Chervon Holdings to Review Interim Financials and Dividend

Chervon Holdings Limited has announced that its board of directors will meet on August 28, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend, reflecting the company’s ongoing financial strategies and potential benefits for stakeholders.

The most recent analyst rating on (HK:2285) stock is a Buy with a HK$34.00 price target. To see the full list of analyst forecasts on Chervon Holdings Limited stock, see the HK:2285 Stock Forecast page.