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Chervon Holdings Limited (HK:2285)
:2285
Hong Kong Market

Chervon Holdings Limited (2285) AI Stock Analysis

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HK

Chervon Holdings Limited

(2285)

Rating:69Neutral
Price Target:
Chervon Holdings Limited has shown strong financial performance, driven by revenue growth and improved profitability. Valuation metrics suggest the stock is undervalued, presenting a potential opportunity for growth. However, technical indicators indicate bearish momentum, posing short-term challenges. While leverage has improved, historical volatility in financial metrics necessitates careful monitoring. The absence of earnings call data and corporate events limits the assessment to existing financial and market data.

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

Chervon Holdings Limited Business Overview & Revenue Model

Company DescriptionChervon 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 MoneyChervon Holdings Limited generates revenue primarily through the sale of its power tools and outdoor power equipment. The company's key revenue streams include product sales to retailers, distributors, and end-users globally. Chervon's business model is built on its strong brand portfolio and extensive distribution network, enabling it to reach a wide customer base across different geographical regions. The company also invests in research and development to innovate and improve its product offerings, which helps maintain its competitive edge in the market. Strategic partnerships and collaborations with retailers and other industry players further bolster its revenue generation capabilities. Additionally, Chervon's focus on sustainable and energy-efficient products aligns with growing consumer preferences, potentially expanding its market share and revenue streams.

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
80
Positive
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
75
Positive
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
70
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.45B1.77B1.37B1.99B1.76B1.20B
Gross Profit
418.18M615.68M386.70M604.17M494.32M368.57M
EBIT
-7.44M155.36M-27.22M189.24M188.23M70.12M
EBITDA
29.34M199.71M244.45M184.43M99.97M
Net Income Common Stockholders
-24.73M112.47M-37.12M139.44M144.49M44.34M
Balance SheetCash, Cash Equivalents and Short-Term Investments
387.09M328.76M296.34M486.73M703.02M172.31M
Total Assets
1.94B1.99B1.80B1.86B2.06B1.09B
Total Debt
342.47M309.48M336.02M351.54M456.88M355.18M
Net Debt
-44.62M-19.28M39.68M-115.18M-208.11M188.24M
Total Liabilities
957.97M955.60M835.76M916.40M1.26B807.44M
Stockholders Equity
981.56M1.04B960.73M946.19M797.02M259.74M
Cash FlowFree Cash Flow
-32.03M93.95M-261.95M-49.15M77.02M102.13M
Operating Cash Flow
32.02M167.68M-173.64M23.08M158.14M133.68M
Investing Cash Flow
-60.64M-70.42M-57.94M-116.50M-58.87M-15.65M
Financing Cash Flow
24.48M-60.81M61.08M-104.12M399.39M-50.41M

Chervon Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.80
Price Trends
50DMA
12.66
Positive
100DMA
14.44
Positive
200DMA
15.47
Negative
Market Momentum
MACD
0.57
Negative
RSI
59.31
Neutral
STOCH
42.98
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 14.8 is above the 20-day moving average (MA) of 14.20, above the 50-day MA of 12.66, and below the 200-day MA of 15.47, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 42.98 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$7.56B8.6111.29%63.14%28.57%
57
Neutral
$1.32B4.07-2.93%11.10%3.37%-51.35%
$264.57M-70.25%
DECE3
€464.31M7.935.40%18.46%
€1.50B6.7111.35%1.04%
56
Neutral
HK$5.78B1,004.760.20%12.45%
DE7IP
€517.36M6.6313.24%7.07%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2285
Chervon Holdings Limited
14.80
-1.33
-8.25%
CHSTF
China High Speed Transmission Equipment Group Co
0.12
-0.02
-14.29%
DE:CE3
Chongqing Machinery & Electric Co. Ltd. Class H
0.12
0.05
71.43%
DE:HP6H
Harbin Electric Co. Ltd. Class H
0.65
0.37
132.14%
HK:0187
Beijing Jingcheng Machinery Electric Co Ltd Class H
4.22
2.16
104.85%
DE:7IP
Impro Precision Industries Limited
0.27
0.07
35.00%

Chervon Holdings Limited Corporate Events

Chervon Holdings Announces Conditional Special Dividend Update
Apr 30, 2025

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
Apr 30, 2025

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
Apr 25, 2025

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
Apr 25, 2025

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
Mar 26, 2025

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
Mar 26, 2025

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
Mar 26, 2025

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
Mar 26, 2025

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
Mar 26, 2025

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
Mar 14, 2025

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.

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.