Carpenter Tan Holdings Limited (0837) AI Stock Analysis

• Market Cap: HK$1.46B
• Dividend Yield: 48.82%
• Average Volume (3M): 109.83K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.14
• Revenue Growth: -0.87%
• EPS Growth: -3.46%
• Country: HK
• Employees: 989
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.75
• Shares Outstanding: 248,714,000
• 10 Day Avg. Volume: 96,000
• 30 Day Avg. Volume: 109,834
• PEG Ratio: 0.00
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.41
• 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

• Rating: 66 Neutral
• Price Target: ―

Carpenter Tan Holdings Limited has a robust financial profile with strong profitability and a solid balance sheet, contributing significantly to the stock's attractiveness. However, the technical indicators are neutral, providing little momentum support, and the fluctuations in cash flow present a risk. The low P/E ratio and high dividend yield enhance the stock's appeal, though cash management remains a key area to monitor.

Carpenter Tan Holdings Limited Business Overview & Revenue Model

Company Description

Carpenter Tan Holdings Limited, an investment holding company, designs, manufactures, and distributes wooden handicrafts and accessories. The company offers wooden or horn combs, such as colored drawing combs, grass-and-tree dyed wooden combs, and carved combs; pocket-size wooden mirrors, including colored drawing mirrors and carved mirrors; other wooden accessories and adornments comprising bead bracelets, pendants, barrettes, hair bobs, and massage tools; and box sets that combine its products in themes for gift purpose. The company sells its products primarily under the Carpenter Tan brand name. It is also involved in the operation of retailing shops in Hong Kong and in the People's Republic of China, as well as franchise and distribution network primarily in the People's Republic of China; distribution of wooden handicrafts and accessories through Internet; and property investment activities. As of December 31, 2021, the company had 1,094 franchised stores; and 3 self-operated outlets. Carpenter Tan Holdings Limited was founded in 1997 and is headquartered in Jurong, the People's Republic of China.

How the Company Makes Money

Carpenter Tan Holdings Limited generates revenue through the sale of its wooden handicraft products. The company operates a vertically integrated business model, controlling various stages of production from design and manufacturing to retail and distribution. Its revenue streams are primarily derived from its retail outlets, franchised stores, and online sales channels. The company leverages its brand reputation for quality and craftsmanship to maintain a strong market presence. Additionally, strategic partnerships with retailers and expansion into international markets contribute to its revenue growth.

Carpenter Tan Holdings Limited Financial Statement Overview

Summary

Carpenter Tan Holdings Limited demonstrates strong profitability with high gross and net profit margins, efficient operations, and a robust balance sheet with minimal leverage. The main concern is the fluctuation in free cash flow, which requires careful management.

Income Statement

The company demonstrates strong profitability with a consistently high gross profit margin of approximately 60%. The net profit margin is also robust, ranging from around 34% to 36% in recent years. Revenue growth has been positive, with a notable increase from 2022 to 2023. The EBIT and EBITDA margins are healthy, indicating efficient operations and good earnings quality.

Balance Sheet

Carpenter Tan Holdings Limited has a solid balance sheet with a low debt-to-equity ratio, reflecting minimal leverage. The equity ratio is high, indicating a strong capital base. Return on Equity (ROE) remains impressive, suggesting effective use of shareholders' funds. However, the decline in cash and short-term investments may need monitoring.

Cash Flow

The company's cash flow from operations is strong, but free cash flow has shown fluctuations, notably in the latest period where it was zero. The operating cash flow to net income ratio highlights efficient cash generation relative to earnings, but the recent zero free cash flow could imply capital allocation or operational challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
505.44M	499.69M	348.00M	330.91M	277.26M
	Gross Profit
305.20M	300.88M	205.25M	199.79M	157.63M
	EBIT
213.54M	210.27M	127.20M	123.38M	81.99M
	EBITDA
215.23M	220.39M	131.82M	127.88M	86.07M
	Net Income Common Stockholders
171.37M	173.73M	107.25M	107.66M	79.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
227.50M	377.38M	264.87M	353.38M	359.78M
	Total Assets
1.01B	930.78M	805.56M	784.31M	734.41M
	Total Debt
12.11M	12.82M	11.32M	13.72M	7.88M
	Net Debt
-29.60M	-54.56M	-15.84M	-22.07M	-87.90M
	Total Liabilities
125.17M	122.29M	113.68M	111.86M	115.28M
	Stockholders Equity
883.96M	804.38M	687.82M	668.40M	606.22M
Cash Flow		Free Cash Flow
113.31M	168.60M	49.17M	44.35M	76.05M
	Operating Cash Flow
146.39M	189.66M	67.46M	66.15M	80.61M
	Investing Cash Flow
-73.01M	-89.46M	14.02M	-66.78M	195.74M
	Financing Cash Flow
-97.48M	-59.87M	-85.68M	-60.00M	-213.14M

Carpenter Tan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0837, the sentiment is Positive. The current price of 5.89 is above the 20-day moving average (MA) of 5.86, above the 50-day MA of 5.67, and above the 200-day MA of 5.50, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 17.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0837.

Carpenter Tan Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0837	66 Neutral	HK$1.46B	7.88	20.34%	48.82%	-0.87%	-3.46%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
ANPDF		$32.30B	15.10	28.11%	2.60%	―	―
1811	69 Neutral	HK$10.21B	5.28	15.73%	4.74%	-11.32%	-7.61%
1689	45 Neutral	HK$448.92M	―	-42.10%	―	-7.48%	-168.99%
1360	31 Underperform	HK$24.65M	―	-878.46%	―	1056.24%	-5.37%

Carpenter Tan Holdings Limited Corporate Events

Carpenter Tan Holdings Limited Announces Successful AGM Resolutions

Carpenter Tan Holdings Limited announced the successful passing of all resolutions during its Annual General Meeting held on May 23, 2025. Key resolutions included the re-election of executive directors, the appointment of Crowe (HK) CPA Limited as the auditor, and the declaration of a final dividend of HK36.63 cents per share. The approval of share issuance and repurchase mandates suggests a strategic move to enhance shareholder value and operational flexibility.

Carpenter Tan Holdings Schedules 2024 AGM with Key Resolutions

Carpenter Tan Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 23, 2025, in Jiangsu Province, China. The AGM will address several key resolutions, including the adoption of the 2024 financial statements, re-election of directors, appointment of Crowe (HK) CPA Limited as the auditor, and the declaration of a final dividend of HK36.63 cents per share. Additionally, the meeting will consider granting the board the authority to issue additional shares, which could impact the company’s capital structure and shareholder value.

Carpenter Tan Holdings Announces Final Dividend for 2024

Carpenter Tan Holdings Limited has announced a final ordinary cash dividend of HKD 0.3663 per share for the financial year ending December 31, 2024. The dividend reflects the company’s stable financial performance and commitment to returning value to its shareholders. The ex-dividend date is set for May 30, 2025, with the payment date scheduled for June 30, 2025. This announcement underscores Carpenter Tan’s strong market position and its dedication to maintaining shareholder trust and satisfaction.

Carpenter Tan Holdings Reports Slight Revenue Growth Amid Profit Decline

Carpenter Tan Holdings Limited reported a modest increase in revenue and gross profit for the year ended December 31, 2024, with revenue rising by 1.2% to approximately RMB505.4 million and gross profit increasing by 1.4% to approximately RMB305.2 million. Despite these gains, the company’s profit for the year decreased by 1.3% to approximately RMB171.5 million, and earnings per share fell by 1.4% to RMB68.90 cents. The board has recommended a final dividend of HK36.63 cents per share, pending shareholder approval.