According to Zhitong Finance APP, Chervon Holdings (02285) shares rose more than 4%, up 4.08% as of press time to HK$30.1, with a turnover of HK$38.8181 million.

On the news front, on September 10 this year, former Techtronic Industries CEO Joseph Galli Jr joined Chervon Holdings as the new chief executive officer, while founder Pan Longquan will remain as chairman.

Daiwa noted that Galli subsequently recruited and promoted four key senior executives for the North American business within two to three weeks, three of whom had previously worked together at Techtronic's Milwaukee business.

The firm believes the company's path for sustainable re-rating is clear, including the new CEO's blueprint and option plan, as well as a turnaround for professional power tool brand FLEX in the U.S. market.

Daiwa raised its earnings per share forecasts for Chervon Holdings for 2027 to 2028 by 3% to 4%, and due to stronger revenue growth prospects, lifted its target price-to-earnings ratio from 10 times to 15 times, applied to 2027 earnings per share, raising its 12-month target price by approximately 63.3% from HK$24.5 to HK$40, while reiterating its "Buy" rating.