Understanding the Market | CHERVON shares rise over 7%, the tool industry is expected to enter a new cycle with interest rate cuts, and the company's short-term operational pressure may ease with the cyclical trend

CHERVON's stock price rose by more than 7%, with an increase of 7.61% as of the time of writing, reported at HKD 22.9, with a transaction volume of HKD 41.1542 million. The market expects the Federal Reserve to cut interest rates, which may open a new cycle for the tools industry. China Merchants Securities pointed out that the tools industry is highly correlated with the real estate industry, and a rate cut will boost tool demand. A report from CICC shows that the company's OPE business revenue grew by 22.8%, while revenue from power tools saw a slight decline. KGI Securities believes that the company's revenue may come under pressure in 2025, but the rate cut cycle will help alleviate operational pressure