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Carote Ltd (2549) AI Stock Analysis

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HK:2549

Carote Ltd

(HKEX:2549)

Select Model
Rating:74Outperform
Price Target:HKD 4.50â–²(22.28% Upside)
Action:upgraded
Date:09/06/26

The score is led by strong financial quality—especially a very low-risk balance sheet (zero debt) and solid profitability—plus attractive valuation (low P/E and healthy dividend yield). Offsetting these positives are inconsistent cash-flow conversion and a technical picture that is only neutral, with the price still below longer-term moving averages.

Positive Factors
Debt-free balance sheetZero total debt materially reduces balance-sheet leverage risk and preserves financial flexibility. A larger equity base further supports resilience, allowing Carote to withstand operating variability and fund ongoing business needs without the recurring interest burden associated with debt.
Negative Factors
Volatile cash generationThe swing from strong cash generation in 2024 to negative operating and free cash flow in 2025 shows that cash conversion is not yet consistent. This volatility can complicate internal funding, working-capital planning, and confidence in the durability of accounting earnings.

Carote Ltd (2549) vs. iShares MSCI Hong Kong ETF (EWH)

-20%-15%-10%-5%0%5%10%15%20%HK:2549-16.52%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 2.03B
Dividend Yield
3.86%
Average Volume (3M)
131.37K
Price to Earnings (P/E)
6.0
Beta (1Y)
0.81
Revenue Growth
―
EPS Growth
―
Country
Hong Kong
Employees
257
Sector
General
Sector Strength
55
Industry
Furnishings, Fixtures & Appliances

Carote Ltd Business Overview & Revenue Model

Company Description

Carote Ltd, an investment holding entity, is a supplier of a wide array of kitchenware products for brand-owners and retailers, marketed primarily under its CAROTE brand. Its comprehensive product line features cookware, including non-stick pots and...

Carote Ltd Financial Statement Overview

Summary

Strong profitability and multi-year revenue expansion with healthy TTM margins (~12% net). Balance sheet is a major positive with zero total debt in TTM and growing equity. Main drawback is cash-flow inconsistency (2025 operating/FCF swung negative despite improved TTM), plus margin compression versus the 2024 peak.

Income Statement

83Very Positive

Balance Sheet

88Very Positive

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.43B2.16B2.07B1.58B768.48M675.35M
Gross Profit817.01M685.42M835.40M565.14M275.29M126.52M
EBITDA378.16M284.71M423.77M283.15M132.94M43.48M
Net Income290.20M257.81M355.99M237.13M108.77M31.72M
Balance Sheet
Total Assets1.98B1.90B1.72B636.06M553.09M440.04M
Cash, Cash Equivalents and Short-Term Investments1.21B1.04B1.16B236.06M92.54M137.74M
Total Debt0234.40M4.13M9.77M58.72M52.71M
Total Liabilities526.73M491.10M466.07M413.44M415.84M369.61M
Stockholders Equity1.45B1.41B1.26B222.66M137.62M70.52M
Cash Flow
Free Cash Flow93.17M-25.74M281.23M238.09M11.25M51.21M
Operating Cash Flow97.92M-19.58M350.23M243.95M128.65M121.97M
Investing Cash Flow29.39M24.31M-874.10M48.10M-183.97M-95.44M
Financing Cash Flow-89.96M-91.04M648.05M-98.23M606.00K34.93M

Carote Ltd Technical Analysis

Technical Analysis SentimentNegative
Last Price3.68

Price Trends

50DMA3.91Negative
100DMA3.92Negative
200DMA4.26Negative

Market Momentum

MACD-0.06Positive
RSI43.60Neutral
STOCH19.44Positive

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 3.68 is below the 20-day moving average (MA) of 3.82, below the 50-day MA of 3.91, and below the 200-day MA of 4.26, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2549.

Carote Ltd Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

HK:2549 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2549HK:254974OutperformHKD 2.04B6.0020.29%3.86%――
HK:0300HK:030071OutperformHKD 785.08B13.0121.28%5.08%7.41%13.37%
HK:6690HK:669066NeutralHKD 208.69B11.1514.12%6.62%-3.85%-13.53%
HK:1373HK:137363NeutralHKD 449.19M10.065.15%8.35%-8.88%-4.52%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
HK:1691HK:169147NeutralHKD 5.99B17.298.56%―0.39%―
HK:2222HK:222246NeutralHKD 294.22M-16.07-0.49%―4.73%76.27%

* General Sector Average

Performance Comparison

-20%0%20%HK:2549HK:1373HK:1691HK:2222HK:6690HK:0300Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:2549 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:2549Carote Ltd3.68-0.73-16.52%
HK:1373International Housewares Retail Co 0.64-0.09-12.05%
HK:1691JS Global Lifestyle Company Limited1.75-0.01-0.57%
HK:2222NVC International Holdings Ltd.0.58-0.14-19.44%
HK:6690Haier Smart Home Co., Ltd. Class H19.95-3.97-16.61%
HK:0300Midea Group Co. Ltd. Class H96.6518.2923.34%

Carote Ltd Corporate Events

Carote Ltd Delivers Double-Digit Profit Growth Amid Tariff and Cost Pressures

Aug 27, 2026

Carote Ltd reported strong interim results for the six months to 30 June 2026, with total revenue rising 32.8% year on year to RMB1,111.3 million and net profit increasing 31.5% to RMB135.2 million. Growth was driven mainly by its branded business, w...

Carote Board Sets August Meeting to Review Interim Results and Dividend

Jul 17, 2026

Carote Ltd has scheduled a board meeting for August 27, 2026 to review and approve the interim results for the six months ended June 30, 2026. The meeting will also consider the declaration of an interim dividend, signalling potential capital distrib...

Carote signals 30–35% jump in first-half revenue and profit

Jul 16, 2026

Carote Ltd has issued a positive profit alert, indicating that for the six months ended June 30, 2026, the group expects revenue and net profit to rise by approximately 30% to 35% compared with the same period in 2025. Management attributes the impro...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026