Carpenter Tan Holdings Limited (0837) AI Stock Analysis

• Market Cap: HK$1.91B
• Dividend Yield: 4.78%
• Average Volume (3M): 79.58K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.18
• 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: 54,600
• 30 Day Avg. Volume: 79,583
• 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 ▲(15.29% 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.

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 handicrafts, including combs, mirrors, and other accessories, primarily via its extensive retail network. The company operates both self-owned and franchised stores, enabling it to reach a broad customer base across various regions. Additionally, Carpenter Tan capitalizes on e-commerce platforms to expand its market presence and increase sales. The company's revenue model is supported by its strong brand reputation, quality craftsmanship, and distinctive product offerings that appeal to consumers seeking unique and culturally rich items. Strategic partnerships with retailers and marketing initiatives further enhance its market penetration and contribute to its earnings.

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: 8.24
• 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 8.24 is above the 20-day moving average (MA) of 7.95, above the 50-day MA of 7.90, and above the 200-day MA of 6.39, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 30.92 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$1.91B	9.59	21.21%	4.78%	4.50%	4.18%
1418	73 Outperform	HK$390.25M	3.79	10.72%	7.20%	-1.05%	-2.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1373	60 Neutral	HK$557.14M	11.76	5.44%	7.05%	-5.59%	-52.98%
2222	48 Neutral	HK$355.09M	―	-2.05%	―	-4.69%	-123.25%
0776	40 Neutral	HK$546.43M	―	―	―	-15.28%	71.04%
1198	39 Underperform	HK$337.81M	―	-36.67%	―	―	―

Carpenter Tan Holdings Limited Corporate Events

Carpenter Tan Holdings Limited Reports Strong Interim Results for 2025

Carpenter Tan Holdings Limited reported a 9.4% increase in revenue for the first half of 2025, reaching RMB 287,886,000, compared to the same period in 2024. The company’s profit before taxation rose by 11.9%, and profit attributable to the owners increased by 13.2%, reflecting strong operational performance and effective cost management.

Carpenter Tan Holdings to Review Interim Results and Dividend Proposal

Carpenter Tan Holdings Limited has announced a board meeting scheduled for August 28, 2025, to review and approve the unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider recommending an interim dividend, which could impact shareholder returns and reflect the company’s financial health.