SEHK:837

Stock Analysis Report

Executive Summary

Carpenter Tan Holdings Limited, an investment holding company, designs, manufactures, and distributes wooden handicrafts and accessories.

Snowflake

Fundamentals

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Carpenter Tan Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

837

-2.7%

HK Luxury

0.3%

HK Market


1 Year Return

8.6%

837

24.1%

HK Luxury

1.3%

HK Market

Return vs Industry: 837 underperformed the Hong Kong Luxury industry which returned 24.1% over the past year.

Return vs Market: 837 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

837IndustryMarket
7 Day-1.1%-2.7%0.3%
30 Day0%4.3%0.5%
90 Day-1.3%2.5%-4.6%
1 Year20.0%8.6%28.5%24.1%4.9%1.3%
3 Year55.1%18.5%43.3%26.2%15.3%3.7%
5 Year51.2%1.7%43.0%15.2%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Carpenter Tan Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Carpenter Tan Holdings undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 837 (HK$4.67) is trading below our estimate of fair value (HK$8.86)

Significantly Below Fair Value: 837 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 837 is good value based on its PE Ratio (8.5x) compared to the Luxury industry average (9.3x).

PE vs Market: 837 is good value based on its PE Ratio (8.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 837's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 837 is overvalued based on its PB Ratio (1.5x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Carpenter Tan Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 837's earnings are forecast to decline over the next 3 years (-6.9% per year).

Earnings vs Market: 837's earnings are forecast to decline over the next 3 years (-6.9% per year).

High Growth Earnings: 837's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 837's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 837's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 837's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Carpenter Tan Holdings performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 837's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: 837's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 837 had negative earnings growth (-0.2%) over the past year, making it difficult to compare to the Luxury industry average (-4.9%).


Return on Equity

High ROE: 837's Return on Equity (18.1%) is considered low.


Return on Assets

ROA vs Industry: 837 has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 837's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Carpenter Tan Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 837's short term assets (CN¥537.5M) exceeds its short term liabilities (CN¥68.7M)

Long Term Liabilities: 837's short term assets (537.5M) exceeds its long term liabilities (35.5M)


Debt to Equity History and Analysis

Debt Level: 837 is debt free.

Reducing Debt: 837 has no debt compared to 5 years ago when its debt to equity ratio was 25.7%.

Debt Coverage: 837 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 837 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 837 has a high level of physical assets or inventory.

Debt Coverage by Assets: 837's debt is not covered by short term assets (assets are -3.0260868091204E+17x debt).


Next Steps

Dividend

What is Carpenter Tan Holdings's current dividend yield, its reliability and sustainability?

10.52%

Current Dividend Yield


Dividend Yield vs Market

company10.5%marketbottom25%2.3%markettop25%6.2%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 837's dividend (10.52%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 837's dividend (10.52%) is in the top 25% of dividend payers in the Hong Kong market (6.18%)

Stable Dividend: 837's dividend payments have been volatile in the past 10 years.

Growing Dividend: 837's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.8%), 837's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Carpenter Tan Holdings's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average board tenure


CEO

Lizi Tan (30yo)

0.8yrs

Tenure

CN¥545,000

Compensation

Mr. Lizi Tan has been Chief Executive Officer at Carpenter Tan Holdings Limited since January 01, 2019 and has been its Executive Director since September 15, 2017. He served as Assistant to the Chief Exec ...


CEO Compensation Analysis

Compensation vs. Market: Lizi has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Lizi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

3.8yrs

Average Tenure

39yo

Average Age

Experienced Board: 837's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Helice Chan (58yo)

    Financial Controller & Company Secretary

    • Tenure: 0yrs
  • Chuan Hua Tan (62yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥927.00k
  • Di Fu Tan (34yo)

    Executive Director

    • Tenure: 9.2yrs
    • Compensation: CN¥88.00k
  • Hong Ping Luo (52yo)

    Administration Controller

    • Tenure: 0yrs
  • Cheng Qin Fan (55yo)

    Co-Founder & Quality Controller

    • Tenure: 0yrs
  • Lizi Tan (30yo)

    CEO & Executive Director

    • Tenure: 0.8yrs
    • Compensation: CN¥545.00k

Board Members

  • Donald Chau (56yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: CN¥132.00k
  • Chuan Hua Tan (62yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥927.00k
  • Di Fu Tan (34yo)

    Executive Director

    • Tenure: 9.2yrs
    • Compensation: CN¥88.00k
  • Zuoan Huang (59yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥212.00k
  • Lizi Tan (30yo)

    CEO & Executive Director

    • Tenure: 0.8yrs
    • Compensation: CN¥545.00k
  • Yinan Tan (36yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥88.00k
  • Yang Yang (40yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥88.00k
  • Liting Liu (38yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥88.00k

Company Information

Carpenter Tan Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carpenter Tan Holdings Limited
  • Ticker: 837
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$1.181b
  • Shares outstanding: 248.71m
  • Website: https://www.ctans.com

Number of Employees


Location

  • Carpenter Tan Holdings Limited
  • Buidling 10
  • Shang Island
  • Jurong
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
837SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2009

Biography

Carpenter Tan Holdings Limited, an investment holding company, designs, manufactures, and distributes wooden handicrafts and accessories. It offers wooden or horn combs, such as colored drawing combs, gras ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:47
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.