Carpenter Tan Holdings: 6.1% Dividend Yield, 6.3x EV/EBITDA by Sui Chuan Yeo, ValueEdge Carpenter Tan designs, manufactures and distributes wooden accessories made of natural wood. Its main product is wooden combs which are marketed as premium gift sets and works of art. In FY2014, combs and box sets accounted for 27.1% and 67.6% of total revenue respectively. The Company sells its products through a franchise network primarily in China. We highlight 4 key points about Carpenter Tan for potential investors. Stable and Highly Profitable Company Carpenter Tan has demonstrated consistently high profitability in the last 5 years with net profit margins and return on equity averaging 41.5% and 24.7% respectively. This can be partially attributed to interest income, VAT refunds (as the Company qualifies as a social welfare industrial enterprise) and rental income which accounted for 9.8%, 6.6% and 3.1% of FY14 Profit before Tax respectively. Excluding these effects, net... More