Carpenter Tan Holdings Limited (0837) AI Stock Analysis

Carpenter Tan Holdings Limited

(HKEX:0837)

Select Model

Rating:78Outperform

Price Target:HKD 6.00▲(18.81% Upside)

Action:reiterated

Date:08/06/26

The score is driven primarily by strong financial performance (high profitability, very low leverage, and generally solid cash conversion) and supportive valuation (low P/E and high dividend yield). Offsetting these strengths, technical indicators show muted momentum with the price below key longer-term moving averages and a slightly negative MACD.

Positive Factors

Very Low LeverageThe very low debt burden gives Carpenter Tan substantial financial flexibility and reduces the risk that interest costs constrain operations. A steadily expanding equity and asset base also supports resilience, internal funding capacity, and continued investment through changing business conditions.

Negative Factors

Uneven Revenue GrowthThe uneven revenue trajectory indicates that top-line expansion has not been consistently sustained across periods. Cyclical or irregular growth can make future earnings less predictable, complicate planning, and limit the reliability of operating leverage even when profitability remains strong.

Carpenter Tan Holdings Limited (0837) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 1.26B
Dividend Yield: 7.59%
Average Volume (3M): 82.26K
Price to Earnings (P/E): 6.6
Beta (1Y): 0.25
Revenue Growth: 4.21%
EPS Growth: -8.14%
Country: Hong Kong
Employees: 1,029
Sector: Consumer Defensive
Sector Strength: 62
Industry: Household & Personal Products

Carpenter Tan Holdings Limited Business Overview & Revenue Model

Company Description

Carpenter Tan Holdings Limited, an investment holding entity, focuses on the creation, manufacturing, and distribution of wooden handicrafts and associated accessories. The company's diverse product line includes skillfully crafted wooden and horn co...

Carpenter Tan Holdings Limited Financial Statement Overview

Summary

Overall fundamentals are strong, led by a conservatively financed balance sheet (very low leverage and steadily expanding equity/assets) and consistently high profitability. Cash generation is generally solid with good recent cash conversion, but year-to-year cash flow volatility and uneven revenue growth temper the score.

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	534.02M	558.22M	505.44M	499.69M	348.00M	330.91M
Gross Profit	338.70M	345.30M	305.20M	300.88M	205.25M	199.79M
EBITDA	210.02M	222.24M	218.90M	220.39M	135.45M	133.03M
Net Income	162.58M	171.03M	171.37M	173.73M	107.25M	107.66M
Balance Sheet
Total Assets	1.11B	1.12B	1.01B	930.78M	805.56M	784.31M
Cash, Cash Equivalents and Short-Term Investments	150.08M	170.48M	227.50M	377.38M	264.87M	353.38M
Total Debt	19.77M	20.78M	12.11M	12.82M	11.32M	13.72M
Total Liabilities	127.89M	149.32M	125.17M	122.29M	113.68M	111.86M
Stockholders Equity	981.32M	970.62M	883.96M	804.38M	687.82M	668.40M
Cash Flow
Free Cash Flow	116.62M	154.57M	113.31M	168.60M	49.17M	44.35M
Operating Cash Flow	129.41M	172.86M	146.39M	189.66M	67.46M	66.15M
Investing Cash Flow	-64.20M	-39.89M	-73.01M	-89.46M	14.02M	-66.78M
Financing Cash Flow	-105.38M	-100.76M	-97.48M	-59.87M	-85.68M	-60.00M

Carpenter Tan Holdings Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price5.05

Price Trends

50DMA5.62Negative

100DMA5.87Negative

200DMA6.51Negative

Market Momentum

MACD-0.15Positive

RSI18.13Positive

STOCH14.72Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0837, the sentiment is Negative. The current price of 5.05 is below the 20-day moving average (MA) of 5.28, below the 50-day MA of 5.62, and below the 200-day MA of 6.51, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 18.13 is Positive, neither overbought nor oversold. The STOCH value of 14.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0837.

Carpenter Tan Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

HK:0837 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0837	78Outperform	HKD 1.26B	6.58	16.66%	7.59%	4.21%	-8.14%
HK:1999	65Neutral	HKD 8.67B	4.80	13.03%	10.64%	-2.80%	-12.13%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HK:1418	55Neutral	HKD 211.75M	4.69	4.32%	8.26%	35.18%	-56.12%
HK:1198	51Neutral	HKD 446.95M	-0.57	-164.30%	―	-29.60%	-51.87%
HK:1575	41Neutral	HKD 185.43M	-1.80	26.53%	―	-59.38%	-200.00%
HK:0684	40Underperform	HKD 166.53M	-4.41	-5.41%	―	23.15%	60.71%

* Consumer Defensive Sector Average

Performance Comparison

HK:0837 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:0837	Carpenter Tan Holdings Limited	5.05	-2.23	-30.61%
HK:1999	Man Wah Holdings	2.25	-2.34	-50.98%
HK:0684	Allan International Holdings Limited	0.50	-0.05	-9.09%
HK:1198	Royale Home Holdings Limited	0.17	0.02	16.22%
HK:1418	Sinomax Group Ltd.	0.12	-0.10	-45.00%
HK:1575	Morris Home Holdings Limited	0.05	0.00	0.00%

Carpenter Tan Holdings Limited Corporate Events

Carpenter Tan Sees Lower Interim Revenue but Improved Gross Margins

Aug 28, 2026

Carpenter Tan Holdings Limited reported interim results for the six months ended 30 June 2026 showing revenue of RMB263.4 million, down 8.5% year on year, while cost of sales fell 16.1%, lifting gross margin to 64.9% from 61.8%. Profit attributable t...

Carpenter Tan Schedules Board Meeting on Interim Results and Dividend

Aug 14, 2026

Carpenter Tan Holdings Limited, a Cayman Islands-incorporated company listed on the Hong Kong Stock Exchange, operates via a group structure overseen by a board of five executive and three independent non-executive directors. The company communicates...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 06, 2026

Carpenter Tan Holdings Limited AI Stock Analysis