Carote Ltd (2549) AI Stock Analysis

• Market Cap: HK$2.54B
• Dividend Yield: 3.07%
• Average Volume (3M): 765.86K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 1.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 180
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): N/A
• Shares Outstanding: 555,002,600
• 10 Day Avg. Volume: 470,150
• 30 Day Avg. Volume: 765,860
• PEG Ratio: 0.14
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 8.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$5.50 ▲(36.14% Upside)

Carote Ltd's strong financial performance is the most significant factor, supported by robust revenue growth, profitability, and low financial risk. The technical analysis indicates moderate bullish momentum, while the valuation suggests the stock is attractively priced with a low P/E ratio and decent dividend yield. These factors collectively contribute to a solid overall stock score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, which are crucial for long-term business expansion and competitiveness.

Cash Flow Generation

Strong cash flow generation supports operational and investment activities, ensuring the company can fund growth initiatives and withstand economic fluctuations.

Balance Sheet Health

A low leverage position minimizes financial risk and enhances financial stability, allowing the company to focus on growth opportunities without significant debt burden.

Negative Factors

Market Saturation Risk

Operating in a niche market may limit growth potential if market saturation occurs, requiring diversification or innovation to sustain long-term growth.

Dependence on Retail Channels

Heavy reliance on retail channels can expose the company to risks from changing consumer preferences and retail industry disruptions, impacting sales stability.

Competitive Pressure

While innovation is a strength, the competitive consumer goods market requires continuous product development to maintain differentiation and market share.

Carote Ltd Business Overview & Revenue Model

Company Description

Carote Ltd (2549) is a leading manufacturer and distributor of high-quality cookware and kitchenware products, specializing in non-stick and eco-friendly cookware solutions. The company operates primarily in the consumer goods sector, catering to both retail and wholesale markets. Carote’s core product offerings include frying pans, saucepans, and various kitchen utensils designed to enhance cooking efficiency and promote healthier cooking practices.

How the Company Makes Money

Carote Ltd generates revenue through the sale of its diverse range of cookware products to retailers, online marketplaces, and direct consumers. The company employs a multi-channel distribution strategy, leveraging both brick-and-mortar stores and e-commerce platforms to reach a wide customer base. Key revenue streams include wholesale partnerships with major retailers, direct-to-consumer sales through their website, and collaborations with culinary influencers to boost brand visibility. Additionally, Carote benefits from economies of scale in manufacturing, allowing for competitive pricing while maintaining healthy profit margins.

Carote Ltd Financial Statement Overview

Summary

Carote Ltd presents a robust financial profile with strong revenue and profit growth, efficient cost management, and solid cash flow generation. The company maintains a low leverage position, minimizing financial risk while achieving high returns on equity. The financial statements collectively indicate a well-managed company with a strong growth trajectory and stable financial health.

Income Statement

Carote Ltd has demonstrated strong revenue growth with a 31% increase from 2023 to 2024. The company maintains a healthy gross profit margin of 40.3% and a net profit margin of 17.2% for 2024, indicating efficient cost management and profitability. The EBIT margin stands at 19.2%, and the EBITDA margin is 20.4%, reflecting solid operational performance. Overall, the income statement shows robust growth and profitability.

Balance Sheet

The balance sheet of Carote Ltd is strong, with a low debt-to-equity ratio of 0.003, indicating minimal leverage and financial risk. The return on equity (ROE) is impressive at 28.3%, showcasing effective use of equity to generate profits. The equity ratio is high at 72.9%, suggesting a solid capital structure with significant equity financing. The balance sheet reflects stability and low financial risk, though the company could explore leveraging opportunities for further growth.

Cash Flow

Carote Ltd exhibits a healthy cash flow position with a free cash flow growth rate of 18.1% from 2023 to 2024. The operating cash flow to net income ratio is 0.98, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.79, reflecting efficient cash management. Overall, the cash flow statement shows strong cash generation and growth, supporting the company's operational and investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	291.83M	2.07B	1.58B	768.48M	675.35M
Gross Profit	110.70M	835.40M	565.14M	275.29M	126.52M
EBITDA	66.35M	423.77M	283.15M	132.94M	43.48M
Net Income	55.87M	355.99M	237.13M	108.77M	31.72M
Balance Sheet
Total Assets	795.17M	1.72B	636.06M	553.09M	440.04M
Cash, Cash Equivalents and Short-Term Investments	264.17M	1.16B	236.06M	92.54M	137.74M
Total Debt	9.83M	4.13M	9.77M	58.72M	52.71M
Total Liabilities	582.97M	466.07M	413.44M	415.84M	369.61M
Stockholders Equity	212.25M	1.26B	222.66M	137.62M	70.52M
Cash Flow
Free Cash Flow	122.12M	281.23M	238.09M	11.25M	51.21M
Operating Cash Flow	122.12M	350.23M	243.95M	128.65M	121.97M
Investing Cash Flow	-92.22M	-874.10M	48.10M	-183.97M	-95.44M
Financing Cash Flow	-1.69M	648.05M	-98.23M	606.00K	34.93M

Carote Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2549, the sentiment is Negative. The current price of 4.04 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.65, and below the 200-day MA of 4.84, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 53.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2549.

Carote Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2549	75 Outperform	HK$2.54B	5.22	―	3.07%	―	―
8400	64 Neutral	HK$40.00M	9.09	24.70%	―	28.47%	-4.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8495	54 Neutral	HK$138.24M	327.27	0.78%	―	-2.67%	22.22%
8447	50 Neutral	HK$39.00M	-65.00	-3.70%	―	6.55%	98.02%
8510	46 Neutral	HK$39.65M	-4.04	―	―	144.78%	10.07%
8493	41 Neutral	HK$10.16M	-0.23	―	―	-77.80%	-586.04%