Futu News on September 30th, $CAROTE LTD (02549.HK)$ Today's pre-market opened high, closing up 80.62% at HK$10.44, with a turnover of HK$75.0514 million, and a total market value of HK$5.591 billion; 500 shares per lot, disregarding transaction fees, earning HK$2330 per lot.

Market source: Futu Securities >

Investment highlights

Agile product design and development capabilities: The company is able to quickly design and provide kitchen products that meet consumer needs. By integrating product development, operation, and supply chain management, the company can innovate, upgrade, and respond to market changes in a timely manner based on market trends and consumer feedback. This agility ensures that the company's core cookware series has an average product development cycle from concept to market of 50 days, exceeding the industry average of 60 days according to a report by Zhishi Consulting. In addition, continuous sales monitoring and product improvements further enhance the company's ability to adapt to market changes during the product development process and successfully launch new products.

Solid professional knowledge and efficient supply chain: Over the past two decades, the company has accumulated valuable experience and industry expertise in the production of kitchen products, especially through its role as an ODM partner for international brands and retailers. This unique experience enables the company to effectively manage the supply chain through a light asset model. The company relies on qualified contract manufacturers for outsourced production to improve operational efficiency. Collaborating with contract manufacturers also provides flexibility for the company, allowing it to purchase new products for trial sales with lower minimum order quantities before a full product launch.

Risk warning

Highly reliant on brand image and reputation: During the performance record period, the company's majority of income comes from the sales of its own brand kitchenware products, which make a significant contribution to the company's overall operation. The company's "CAROTE" brand name has become a valuable asset, recognized by consumers for its beauty, quality, and reliability. Therefore, the company's continued success and growth will largely depend on its ability to maintain and enhance the brand name and reputation in the existing market and new markets it plans to expand into.

Business relies on the operation of e-commerce platforms: The company's brand business focuses on direct customer participation, relying on online channels to connect with customers and make sales. Therefore, cooperation with major e-commerce platforms where the company's online stores are located (such as Amazon, Tmall, Lazada, and Rakuten) is key to the company's successful operation and expanding its customer base. After the company's products are listed on these platforms, they attract potential customers through advertising.

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Editor/Joe