Carote Flags Profit Slump Despite Revenue Growth on Tariffs and FX Hit

Carote Ltd ( (HK:2549) ) just unveiled an update.

Carote Ltd has warned investors that despite an expected revenue increase of about 3% to 5% for the year ended 31 December 2025, its net profit is projected to drop by roughly 25% to 35% compared with 2024. The company attributes this squeeze to higher costs from new U.S. tariffs on Chinese steel and aluminum exports and foreign-exchange losses stemming from the depreciation of the U.S. dollar against the Renminbi.

These headwinds have eroded gross margins in the key U.S. market even as top-line growth remains positive, prompting Carote to implement selective price hikes and operational adjustments in an effort to protect profitability. With full-year results still being finalized and unaudited, the company has urged shareholders and potential investors to exercise caution when dealing in its shares ahead of the detailed results release expected by the end of March 2026.

The most recent analyst rating on (HK:2549) stock is a Buy with a HK$5.50 price target. To see the full list of analyst forecasts on Carote Ltd stock, see the HK:2549 Stock Forecast page.

More about Carote Ltd

Carote Ltd is an exempted company incorporated in the Cayman Islands with limited liability and listed in Hong Kong. The group operates export-oriented businesses that include primary product lines involving steel and aluminum goods shipped to the U.S. market, leaving its performance exposed to trade measures and currency fluctuations between the U.S. dollar and the Renminbi.

Average Trading Volume: 724,279

Technical Sentiment Signal: Buy

Current Market Cap: HK$2.79B

Find detailed analytics on 2549 stock on TipRanks’ Stock Analysis page.