Chervon (2285) H1 2026 earnings summary

Executive summary

• Achieved record-high H1 revenue of US$1,029.1 million, up 12.8% year-over-year, driven by strong OBM business growth, customer restocking, and robust end-market demand.

• Net profit rose 11.6% to US$106.3 million; adjusted net profit surged 39.9% year-over-year, excluding a prior-year disposal gain.

• Gross profit margin reached a record 39.3%, up 600 bps, aided by high-margin OBM products, operational efficiency, and tariff refunds.

• All major brands (EGO, FLEX, SKIL, DEVON) delivered strong or improved performance, with EGO achieving record highs across all key metrics.

• Interim dividend of HK$0.3258 per share declared and HK$150 million share repurchase plan launched, with 1.85 million shares repurchased.

Financial highlights

• Revenue: US$1,029.1 million (+12.8% YoY); Net profit: US$106.3 million (+11.6% YoY); Adjusted net profit: US$106.3 million (+39.9% YoY); Gross profit: US$404.2 million (+33.0% YoY); Gross margin: 39.3%.

• Basic EPS: US$0.21 (+10.5% YoY).

• Net cash from operating activities: US$129.5 million (down from US$256.7 million YoY); Cash and cash equivalents: US$372.2 million.

• SG&A expenses rose 23.4% to US$267 million, now 25.9% of revenue.

• Interim dividend declared: HK$0.3258/share (US$21.3 million total).

Outlook and guidance

• Management expects continued recovery and sustainable long-term growth, citing strong brands, technology, and supply chain capabilities.

• Strategic focus on product portfolio optimization, pricing, and global manufacturing expansion, especially in Vietnam.

• Confident in overcoming tariff-related challenges and enhancing shareholder value.