CHERVON

CHERVON surged on July 3, opening at HKD19.30 in the morning session and climbing to an intraday high of HKD20.62 in the afternoon, closing at HKD20.44 for a 6.96% gain from the prior close of HKD19.11. The rally was driven by a Citigroup upgrade to Buy with a target raise from HKD23 to HKD24 and a 30-day positive catalyst watch, joining earlier Buy ratings from Huatai Securities and Guotai Haitong. The company's ongoing share repurchases for cancellation also supported sentiment. However, Q4 2025 operating revenue fell 25.19% YoY to HKD2.78 billion, net profit plunged 95.31%, and EPS was negative HKD0.0014, underscoring earnings weakness. While the stock has recovered above both the MA20 (HKD16.57) and MA60 (HKD16.62) and shows a YTD gain of 4.61%, it remains 24.85% below the 52-week high of HKD27.20, suggesting the rebound's sustainability hinges on a fundamental turnaround.