Chervon Holdings Limited (2285) AI Stock Analysis

• Market Cap: HK$10.11B
• Dividend Yield: 8.22%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.85
• 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$29.35
• Price Target Upside: 32.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$24.50 ▲(10.86% 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.

Positive Factors

Revenue Growth

Chervon's strong revenue growth reflects its expanding market presence and successful product offerings, indicating a robust growth trajectory.

Balance Sheet Health

The significant reduction in leverage enhances financial stability and flexibility, positioning Chervon well for future investments and growth.

Cash Generation

Positive free cash flow indicates strong cash generation, providing Chervon with the ability to reinvest in R&D and manage operations efficiently.

Negative Factors

Historical Volatility

Past volatility in financial metrics indicates potential risks in maintaining consistent performance, requiring careful management attention.

Operational Challenges

Operational challenges reflected in past earnings volatility may impact future profitability if not effectively addressed.

Debt Levels

Despite improvements, existing debt levels could strain resources if adverse market conditions arise, impacting financial resilience.

Chervon Holdings Limited Business Overview & Revenue Model

Company Description

Chervon Holdings Limited engages in the research, development, manufacture, testing, sale, and after-sale servicing of power tools, outdoor power equipment, and related products North America, Europe, the People's Republic of China, and internationally. The company offers power tools and its accessories for consumer, professionals, and industrial users, as well as original design manufacturer customer; and outdoor tools and its accessories for professional and mass-market users. It provides its products under the EGO, FLEX, SKIL, DEVON, and X-TRON brand names. The company also involved in trading and financial management; sale of parts and components to home appliances business; design, operation, and sale of do-it-yourself products; and production and sale of gardening tools. The company was founded in 1922 and is headquartered in Nanjing, the People's Republic of China.

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 strong revenue growth and improved profitability margins. The balance sheet shows healthier leverage, though 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.

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	912.44M	1.77B	1.37B	1.99B	1.76B	1.20B
Gross Profit	303.94M	615.68M	386.70M	604.17M	494.32M	368.57M
EBITDA	139.57M	199.71M	-2.57M	244.45M	184.43M	99.97M
Net Income	95.22M	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	100.18M	93.95M	-261.95M	-49.15M	77.02M	102.13M
Operating Cash Flow	128.33M	167.68M	-173.64M	23.08M	158.14M	133.68M
Investing Cash Flow	9.62M	-70.42M	-57.94M	-116.50M	-58.87M	-15.65M
Financing Cash Flow	-59.32M	-60.81M	61.08M	-104.12M	399.39M	-50.41M

Chervon Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.10
• 50DMA: Positive
• 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 Positive. The current price of 22.1 is above the 20-day moving average (MA) of 19.62, above the 50-day MA of 20.11, and above the 200-day MA of 17.57, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 68.24 is Neutral, neither overbought nor oversold. The STOCH value of 78.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1286	76 Outperform	€9.36B	13.64	14.15%	3.17%	2.87%	17.03%
2285	74 Outperform	HK$10.11B	8.87	14.64%	8.22%	28.34%	―
1133	74 Outperform	HK$35.49B	14.85	15.06%	1.55%	34.78%	98.79%
2722	65 Neutral	€6.41B	10.31	7.29%	2.42%	11.18%	46.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0187	56 Neutral	HK$6.55B	-582.50	-0.43%	―	7.11%	77.53%
0658	45 Neutral	HK$2.52B	―	-69.18%	―	-4.88%	-860.80%

Chervon Holdings Limited Corporate Events

Chervon Holdings Announces Director Resignation and Temporary Non-Compliance

Chervon Holdings Limited announced the resignation of Mr. Tian Ming as an independent non-executive director, effective November 28, 2025, due to his desire to focus on personal endeavors. This resignation results in temporary non-compliance with Hong Kong Stock Exchange listing rules regarding board and committee composition. The company is actively seeking a suitable candidate to fill the vacancy and aims to restore compliance within three months.

Chervon Holdings Limited Updates Board of Directors and Committees

Chervon Holdings Limited has announced its updated list of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with specific individuals assigned to the audit, remuneration, and nomination committees. This announcement reflects the company’s structured governance approach, potentially impacting its strategic decision-making and stakeholder engagement.