Carpenter Tan Holdings Limited (0837) AI Stock Analysis

• Market Cap: HK$1.45B
• Dividend Yield: 6.28%
• Average Volume (3M): 93.53K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.13
• Revenue Growth: -0.87%
• EPS Growth: -3.46%
• Country: HK
• Employees: 989
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.33
• Shares Outstanding: 248,714,000
• 10 Day Avg. Volume: 95,300
• 30 Day Avg. Volume: 93,533
• PEG Ratio: -2.75
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.54
• 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
EBITDA	215.23M	220.39M	131.82M	127.88M	86.07M
Net Income	171.37M	173.73M	107.25M	107.66M	79.06M
Balance Sheet
Total Assets	1.01B	930.78M	805.56M	784.31M	734.41M
Cash, Cash Equivalents and Short-Term Investments	227.50M	377.38M	264.87M	353.38M	359.78M
Total Debt	12.11M	12.82M	11.32M	13.72M	7.88M
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: Neutral
• Last Price: 5.83
• 50DMA: Positive
• 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 5.83 is below the 20-day moving average (MA) of 5.85, above the 50-day MA of 5.81, and above the 200-day MA of 5.58, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 22.69 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
1418	72 Outperform	HK$533.75M	3.87	14.54%	8.67%	13.36%	120.39%
1373	70 Outperform	HK$608.04M	7.31	9.47%	4.71%	-4.58%	-31.73%
0837	66 Neutral	HK$1.45B	7.80	20.34%	6.28%	-0.87%	-3.46%
Sector *	62 Neutral	$16.95B	10.84	-7.26%	3.05%	1.71%	-25.14%
2222	46 Neutral	HK$400.75M	1.33	-3.70%	―	-0.07%	-148.33%
1198	42 Neutral	HK$714.60M	―		3.85%	―	―
0776	38 Underperform	HK$354.58M	―		―	-29.01%	67.40%

Carpenter Tan Holdings Limited Corporate Events

Carpenter Tan Holdings Limited Enhances Board Governance with Nomination Committee

Carpenter Tan Holdings Limited has established a Nomination Committee to oversee the composition of its Board of Directors, ensuring that qualified and competent individuals are appointed. The committee is tasked with developing and implementing corporate governance principles and policies, with meetings held at least twice a year to consider director appointments and re-appointments.

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.