Market Insight | Chervon Holdings Surges Over 9% in the Morning Overseas Rate Cuts Boost Real Estate Demand, Domestic Repair and Maintenance Demand Expected to Emerge

CHERVON Holdings surged more than 9% in the morning session, rising 9.11% to HKD 22.15 as of the time of publication, with a turnover of HKD 26.0747 million. On the news front, the Federal Reserve announced a 50 basis point cut in the federal funds rate target range. Huaxi Securities pointed out that considering the end of overseas destocking channels and the downstream channels expected to enter a restocking cycle, real estate-related demand is expected to rebound with the anticipation of a rate cut in the United States, leading to a potential turning point in revenue for domestic related companies. In the long term, with the trend of lithium electrification in outdoor power tools, the market share of related lithium battery OPE companies is expected to continue to rise. Huafu Securities previously pointed out that a large number of middle-class families in the United States live in suburban villas, coupled with high labor costs in the United States, consumers have a strong demand for DIY home repairs, furniture making, and gardening. After the peak of new home sales in China, as the age of houses increases and labor costs in China rise, it is expected that there will also be demand for house repairs and DIY activities in China. Therefore, opportunities for companies in the electric tools industry in China are also worth paying attention to