Macquarie published a research report statingbingobingo39Joseph Galli, chief executive officer and executive director of Chuangke, has submitted his resignation and retired yesterday (20th). He will be replaced by Steven Richman, senior president of its flagship business Milwaukee. The market has fully recognized Galli's leadership over the past 18 years, so it is worried that investors may overreact to news of management changes in the short term, triggering stock price fluctuations.
The bank emphasized that Chuangke has a rich management team and has always implemented its development strategy. It believes that the group's talent pool is underestimated by the market. The main driving force for Chuangke's excellent performance among the industry is its leadership's development plan. It believes that the new executive president has years of industry experience, and this internal promotion will help ensure the stability and continuity of Chuangke's strategic development direction, customer relationships and corporate culture.
Macquarie expects that short-term stock price fluctuations and declines will bring investors opportunities to enter the market. It expects that the group's future operating and development strategies will not undergo any major changes, and it will give it an "outperform" rating with a target price of HK$111.