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Carpenter Tan 0837
Posted:
Tue Dec 15, 2009 2:36 pmby winston
Meanwhile, Carpenter Tan, a Chongqing-based wooden comb maker, plans to raise up to HK$160 million by the end of December in an IPO solely sponsored by First Shanghai Securities.
Re: Carpenter Tan 0837 IPO
Posted:
Wed Dec 16, 2009 10:43 amby winston
From Phillips:-
Valuation
Currently, there is no direct competitor in the market producing similar products. By referencing peers that manufacture household and personal care products like 1044 HK and 1338 HK, these are now trading around 33.9 times 2009E earnings per share and 27.4 times 2010E earnings per share.
Considering the smaller company size but higher profit margin, we estimate the 2010E P/E of Carpenter Tan reasonably should be 12x. 12-month target price is $3.32.
Risk
1) Return of products by the franchisees which makes the revenue lower-than-expected.
2) Fluctuation in the costs of raw materials.
3) Dependence on franchise shops, and the possibility that franchisees do not renew the franchise agreements with the company upon expiration.
Re: Carpenter Tan 0837 IPO
Posted:
Wed Dec 16, 2009 10:46 amby Musicwhiz
Valuations in Hong Kong are really scary. 33.9X and 27.4X PER is considered "normal"?
Re: Carpenter Tan 0837 IPO
Posted:
Wed Dec 16, 2009 10:56 amby winston
Musicwhiz wrote:Valuations in Hong Kong are really scary. 33.9X and 27.4X PER is considered "normal"?
Yes, some people will get hurt one of this days. In the meantime, they are enjoying the ride.
BTW, there was an IPO which went up 90% today. I did not apply because of the high valuation
Re: Carpenter Tan 0837 IPO
Posted:
Wed Dec 16, 2009 1:53 pmby kennynah
W : very curious... is this carpenter's surname "Tan" ?
Re: Carpenter Tan 0837 IPO
Posted:
Wed Dec 16, 2009 1:55 pmby winston
Dont know. Probably.
Re: Carpenter Tan 0837 IPO
Posted:
Wed Dec 16, 2009 2:02 pmby kennynah
very interesting nomenclature... maybe next, we have
Chef Wong
Taxi Low
Tuna Singh
Wantan Min
Textile Leung Yi Fu
Re: Carpenter Tan 0837 IPO
Posted:
Fri Dec 18, 2009 6:27 pmby Doug1
Musicwhiz wrote:Valuations in Hong Kong are really scary. 33.9X and 27.4X PER is considered "normal"?
Phillip Sec was merely quoting comparable companies' valuation. They implied 12x was the appropriate valuation.
Re: Carpenter Tan 0837 IPO
Posted:
Mon Dec 28, 2009 3:22 pmby winston
Did not apply
MARKET TALK: Carpenter Tan Hldg May Rise 20% On Debut
Source: Dow jones Newswire
Re: Carpenter Tan 0837 IPO
Posted:
Tue Sep 04, 2012 4:25 amby winston
not vested
Carpenter Tan Holdings (0837), which makes and sells small wooden accessories - mainly combs and hairbrushes - just announced a 68 percent surge in interim profit.
But the stock fell 4 percent. It has already risen 38 percent since January.
As I said before, I don't understand the company - Carpenter Tan - so I prefer to avoid the stock.
Source: Dr. Check, The Standard HK