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Carpenter Tan Holdings Limited (0837) AI Stock Analysis
Carpenter Tan Holdings Limited
(HKEX:0837)
The overall score is driven primarily by the company’s outstanding financial strength and profitability—high and stable margins, very low leverage, growing equity, and strong free cash flow—indicating low fundamental risk and solid long-term resilience. Attractive valuation, with a low P/E and a dividend yield above 6%, further enhances the investment case by offering both income and potential re-rating upside. Technical indicators are more neutral, with the share price below key longer-term moving averages and momentum signals mixed, suggesting the market is in a wait-and-see mode rather than strongly bullish, which modestly tempers the score but does not outweigh the strong fundamentals and value.
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
The company shows exceptional fundamentals, with revenue nearly doubling from HK$278M in 2020 to HK$544M in 2025, net profit margins consistently around 30–34%, and gross margins improving to 62%, indicating strong and stable profitability despite a slight revenue growth slowdown to 2.6% in 2025.[0] The balance sheet is extremely robust, with a very low debt-to-equity ratio of 0.01–0.02, rising shareholders’ equity from HK$606M to HK$971M, and solid ROE of 13–22%, pointing to low financial risk and efficient capital use.[0] Cash flow is also strong, with operating cash flow comfortably covering obligations (0.8–2.0x) and free cash flow to net income consistently above 70%, including an 88% free cash flow surge in 2025, though prior-year volatility such as the 33% drop in 2024 warrants monitoring.[0]
Income Statement
92Very PositiveBalance Sheet
96Very PositiveCash Flow
88Very Positive| 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
Price Trends
Market Momentum
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
- HK:083785Outperform
HK:199965Neutral
HK:141855Neutral
HK:119851Neutral
HK:157541Neutral
HK:068440Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:0837 | 85Outperform | 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
| Show on chart | 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
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
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...
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