Carpenter Tan Holdings Limited (0837) AI Stock Analysis

• Market Cap: HK$1.96B
• Dividend Yield: 4.65%
• Average Volume (3M): 79.72K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.19
• Revenue Growth: 4.50%
• EPS Growth: 4.18%
• Country: HK
• Employees: 989
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.47
• Shares Outstanding: 248,714,000
• 10 Day Avg. Volume: 52,850
• 30 Day Avg. Volume: 79,716
• PEG Ratio: -5.54
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 11.98
• 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: 78 Outperform
• Price Target: HK$9.50 ▲(23.06% Upside)

Carpenter Tan Holdings Limited has a strong overall stock score driven by robust financial performance and positive technical indicators. The company's solid profitability and balance sheet strength are complemented by a favorable technical setup, indicating potential for continued stock appreciation. The valuation is reasonable with an attractive dividend yield, enhancing the investment appeal.

Positive Factors

Strong Profitability

High profitability margins suggest efficient operations and pricing power, supporting long-term financial stability and shareholder returns.

Solid Balance Sheet

A strong balance sheet with low leverage enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Revenue Growth

Consistent revenue growth indicates expanding market reach and product demand, which can drive future earnings and market share gains.

Negative Factors

Cash Flow Fluctuations

Fluctuating free cash flow may signal challenges in capital allocation or operational efficiency, potentially impacting investment capacity and financial health.

Decline in Cash Reserves

Decreasing cash reserves can limit the company's ability to invest in growth, manage debt, or handle unexpected expenses, affecting long-term resilience.

Operational Challenges

Operational challenges reflected in cash flow volatility could hinder strategic initiatives and affect the company's ability to sustain growth and profitability.

Carpenter Tan Holdings Limited Business Overview & Revenue Model

Company Description

Carpenter Tan Holdings Limited (0837) is a Hong Kong-based investment holding company primarily engaged in the business of property investment and development. The company focuses on acquiring, developing, and managing residential and commercial properties, catering to the growing demand in the real estate sector. With a diverse portfolio, Carpenter Tan Holdings aims to enhance its asset value and generate sustainable returns for its shareholders.

How the Company Makes Money

Carpenter Tan Holdings generates revenue primarily through rental income from its property holdings and the sale of developed properties. The company invests in both residential and commercial real estate, benefiting from the appreciation of property values over time. Additionally, it may engage in property management services, providing another source of revenue. Strategic partnerships with other developers or real estate firms can also enhance its market presence and operational efficiency, contributing to overall earnings. Market conditions, regulatory frameworks, and economic factors in the property sector significantly influence its revenue streams.

Carpenter Tan Holdings Limited Financial Statement Overview

Summary

Carpenter Tan Holdings Limited exhibits strong financial health with robust profitability margins and a solid balance sheet. The income statement shows high gross and net profit margins, while the balance sheet reflects minimal leverage and strong equity utilization. However, the cash flow score is lower due to recent fluctuations in free cash flow, indicating potential challenges in capital allocation or operations.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	530.24M	505.44M	499.69M	348.00M	330.91M	277.26M
Gross Profit	320.75M	305.20M	300.88M	205.25M	199.79M	157.63M
EBITDA	233.74M	215.23M	220.39M	131.82M	127.88M	86.07M
Net Income	184.12M	171.37M	173.73M	107.25M	107.66M	79.06M
Balance Sheet
Total Assets	1.03B	1.01B	930.78M	805.56M	784.31M	734.41M
Cash, Cash Equivalents and Short-Term Investments	146.53M	227.50M	377.38M	264.87M	353.38M	359.78M
Total Debt	11.53M	12.11M	12.82M	11.32M	13.72M	7.88M
Total Liabilities	117.95M	125.17M	122.29M	113.68M	111.86M	115.28M
Stockholders Equity	913.20M	883.96M	804.38M	687.82M	668.40M	606.22M
Cash Flow
Free Cash Flow	82.10M	113.31M	168.60M	49.17M	44.35M	76.05M
Operating Cash Flow	92.86M	146.39M	189.66M	67.46M	66.15M	80.61M
Investing Cash Flow	-150.72M	-73.01M	-89.46M	14.02M	-66.78M	195.74M
Financing Cash Flow	-5.07M	-97.48M	-59.87M	-85.68M	-60.00M	-213.14M

Carpenter Tan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0837, the sentiment is Neutral. The current price of 7.72 is below the 20-day moving average (MA) of 7.80, below the 50-day MA of 7.98, and above the 200-day MA of 6.54, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 59.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	HK$1.96B	9.86	21.21%	4.65%	4.50%	4.18%
1418	73 Outperform	HK$404.25M	3.93	10.72%	7.76%	-1.05%	-2.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1373	60 Neutral	HK$533.47M	11.31	5.44%	7.33%	-5.59%	-52.98%
2222	48 Neutral	HK$334.80M	-4.35	-2.05%	―	-4.69%	-123.25%
0776	40 Neutral	HK$510.60M	-10.76	―	―	-15.28%	71.04%
1198	39 Underperform	HK$265.05M	-0.51	-36.67%	―	―	―

Carpenter Tan Holdings Limited Corporate Events

Carpenter Tan Holdings Limited Appoints New Independent Director

Carpenter Tan Holdings Limited announced the appointment of Dr. Wong Kong Tin as an independent non-executive director. Dr. Wong previously served as an independent non-executive director at NOVA Group Holdings Limited. This appointment is part of the company’s ongoing efforts to strengthen its board with experienced professionals, potentially enhancing its corporate governance and strategic decision-making.

Carpenter Tan Announces Board Changes with New Appointment

Carpenter Tan Holdings Limited announced changes in its board of directors, with the resignation of Mr. Yang Tiannan as an independent non-executive director and the appointment of Dr. Wong Kong Tin to the same role. Dr. Wong brings extensive experience in cross-border investment, corporate governance, and public administration, which could enhance the company’s strategic direction and governance practices.

Carpenter Tan Holdings Limited Announces Board Composition and Committee Roles

Carpenter Tan Holdings Limited has announced the composition of its board of directors and the roles within its established committees. The board consists of both executive and independent non-executive directors, with Mr. Tan Chuan Hua serving as Chairman. The announcement outlines the membership of the audit, remuneration, and nomination committees, highlighting Mr. Chau Kam Wing, Donald as the chairman of all three committees. This organizational structure is crucial for the company’s governance and strategic decision-making.

Carpenter Tan Unveils Flagship Store in Beijing as Part of Brand Upgrade Strategy

Carpenter Tan Holdings Limited announced the launch of its brand upgrade strategy with the opening of a flagship store in Beijing’s Sanlitun 3.3 Building, scheduled for early 2026. This store, designed by renowned designer Jia Wei, will integrate Song Dynasty aesthetics with modern retail experiences, marking a shift from single-product sales to a broader cultural and brand value proposition. The initiative aims to deepen consumer engagement and position the company as a leader in Eastern lifestyle aesthetics.