External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>We think the sales trend in 2Q25E has been weaker than expected (esp. online sales in the US and China) and hence it has become even more challenging for the Company to achieve its 30% sales growth target in FY25E.</li><li>Moreover, the recent climb in US tariffs (from 25% to 50%) on steel- and aluminium-based products could bring a drastic impact on overall GP margin.</li><li>With these underlying changes, we downgrade our rating from Buy to HOLD and cut TP to HK$ 4.64, based on 10x FY25E P/E. It is now trading at 11x FY25E P/E.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We think the sales trend in 2Q25E has been weaker than expected (esp. online sales in the US and China) and hence it has become even more challenging for the Company to achieve its 30% sales growth target in FY25E.Moreover, the recent climb in US tariffs (from 25% to 50%) on steel- and aluminium-based products could bring a drastic impact on overall GP margin.With these underlying changes, we downgrade our rating from Buy to HOLD and cut TP to HK$ 4.64, based on 10x FY25E P/E. It is now trading at 11x FY25E P/E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Carote Ltd (2549 HK) - Macro Risks Are Manifold and Have Intensified

<ul><li>Carote is a global kitchenware brand in the online marketplace.</li><li>It has a presence in around 19 countries/ regions (key markets include China, the US, etc.), selling its kitchenware in about 19 online marketplaces (Amazon, Walmart, Tmall, etc.).</li><li>Thanks to the Company’s nearly two decades of industry experience and consumer insights, and its focus on the online channel and the asset-light model (cooperation with contract manufacturers), it generated RMB 1.58bn sales/ RMB 237mn net profit in FY23 and managed to deliver an impressive CAGR of 53%/ 173% during FY21-23.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Carote is a global kitchenware brand in the online marketplace.It has a presence in around 19 countries/ regions (key markets include China, the US, etc.), selling its kitchenware in about 19 online marketplaces (Amazon, Walmart, Tmall, etc.).Thanks to the Company’s nearly two decades of industry experience and consumer insights, and its focus on the online channel and the asset-light model (cooperation with contract manufacturers), it generated RMB 1.58bn sales/ RMB 237mn net profit in FY23 and managed to deliver an impressive CAGR of 53%/ 173% during FY21-23.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Carote Ltd (2549 HK) - Global Quality & Affordable Kitchenware Brand

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Relying mainly on online channels and successful internationalization strategy, CAROTE’s performance growth showed strong momentum in recent years. However, after the short-term demand outbreak, future performance growth could slow down.</li>
<li>CAROTE adopts a product strategy similar to ZARA, launching a massive product matrix, constantly attracting consumers' interest, but the innovation capability and core competitiveness of products are not high.</li>
<li>Valuation of CAROTE could be higher than <a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>.If Trump is elected, the friction/trade war between China and US may escalate, which is detrimental to CAROTE's future valuation performance.</li>
</ul>


Relying mainly on online channels and successful internationalization strategy, CAROTE’s performance growth showed strong momentum in recent years. However, after the short-term demand outbreak, future performance growth could slow down.
CAROTE adopts a product strategy similar to ZARA, launching a massive product matrix, constantly attracting consumers' interest, but the innovation capability and core competitiveness of products are not high.
Valuation of CAROTE could be higher than Vesync (2148 HK).If Trump is elected, the friction/trade war between China and US may escalate, which is detrimental to CAROTE's future valuation performance.


Pre-IPO Carote Ltd (PHIP Updates) - High Performance Growth May Not Be Sustainable

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Midea Group Co Ltd A / Equity Capital Markets

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, we looked at <a href="https://www.smartkarma.com/entities/midea-group-co-ltd-a" target="_blank" data-smartkarma-citation="entities:16185:1" rel="noopener">Midea Group Co Ltd A (000333 CH)</a> and <a href="https://www.smartkarma.com/entities/bajaj-housing-finance" target="_blank" data-smartkarma-citation="entities:43675:1" rel="noopener">Bajaj Housing Finance (BHF IN)</a>, which are two relatively large listings coming up. </li>
<li>Placement were flowing through again this week, across the region.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, we looked at Midea Group Co Ltd A (000333 CH) and Bajaj Housing Finance (BHF IN), which are two relatively large listings coming up. 
Placement were flowing through again this week, across the region.


ECM Weekly (9th Sep 2024) - Midea, Bajaj Housing, Carote, Western Digital, Challenger, CICT, Premier

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/carote-ltd" target="_blank" data-smartkarma-citation="entities:40980:1" rel="noopener">Carote Ltd (CARO HK)</a> is looking to raise around US$120m in its upcoming Hong Kong IPO.</li>
<li>Carote Ltd is a distributor of kitchenware products. Expanding its lineup of products, Carote aims to meet its customers’ varied kitchen scenarios and enhance their culinary experience.</li>
<li>We had looked at the firm’s past performance in an earlier note. In this note, we discuss its PHIP updates.</li>
</ul>



Carote Ltd (CARO HK) is looking to raise around US$120m in its upcoming Hong Kong IPO.
Carote Ltd is a distributor of kitchenware products. Expanding its lineup of products, Carote aims to meet its customers’ varied kitchen scenarios and enhance their culinary experience.
We had looked at the firm’s past performance in an earlier note. In this note, we discuss its PHIP updates.


Carote Limited Pre-IPO - PHIP Updates - Recent Growth Led by International Markets

Hong Kong

Carote Ltd is a distributor of kitchenware products.  Initially engaged to provide original equipment manufacturing (OEM) overseas, the firm has since ventured into the online retail sector, introducing kitchenware products under its own brand name “CAROTE”.

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Carote Ltd (CARO HK)

Carote Ltd (2549 HK) - Macro Risks Are Manifold and Have Intensified

With these underlying changes, we downgrade our rating from Buy to HOLD and cut TP to HK$ 4.64, based on 10x FY25E P/E. It is now trading at 11x...

CMB International

Carote Ltd (2549 HK) - Global Quality & Affordable Kitchenware Brand

It has a presence in around 19 countries/ regions (key markets include China, the US, etc.), selling its kitchenware in about 19 online...

CMB International

Pre-IPO Carote Ltd (PHIP Updates) - High Performance Growth May Not Be Sustainable

CAROTE's strong growth may slow down due to lack of innovation/core competitiveness of products. Potential friction/trade war between China and...

Xinyao (Criss) Wang

ECM Weekly (9th Sep 2024) - Midea, Bajaj Housing, Carote, Western Digital, Challenger, CICT, Premier

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

Carote Limited Pre-IPO - PHIP Updates - Recent Growth Led by International Markets

Carote Ltd (CARO HK) is looking to raise around US$120m in its upcoming Hong Kong IPO. We had looked at the firm’s past performance in an earlier...

Clarence Chu

Price Gauge

52-week Range

Market Cap (USDm)

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Carote Ltd (2549 HK) - Macro Risks Are Manifold and Have Intensified

With these underlying changes, we downgrade our rating from Buy to HOLD and cut TP to HK$ 4.64, based on 10x FY25E P/E. It is now trading at 11x...

CMB International

Carote Ltd (2549 HK) - Global Quality & Affordable Kitchenware Brand

It has a presence in around 19 countries/ regions (key markets include China, the US, etc.), selling its kitchenware in about 19 online...

CMB International

Pre-IPO Carote Ltd (PHIP Updates) - High Performance Growth May Not Be Sustainable

​CAROTE's strong growth may slow down due to lack of innovation/core competitiveness of products. Potential friction/trade war between China and...

Xinyao (Criss) Wang

ECM Weekly (9th Sep 2024) - Midea, Bajaj Housing, Carote, Western Digital, Challenger, CICT, Premier

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

Carote Limited Pre-IPO - PHIP Updates - Recent Growth Led by International Markets

Carote Ltd (CARO HK) is looking to raise around US$120m in its upcoming Hong Kong IPO. We had looked at the firm’s past performance in an earlier...

Clarence Chu

CAROTE's strong growth may slow down due to lack of innovation/core competitiveness of products. Potential friction/trade war between China and...