By Lillian Liu (China Daily)
Updated: 2008-03-18 15:33

With the comb maker again planning to launch an IPO, analysts are wondering about the timing as the stock market remains volatile.

"I don't think investors will be interested in Carpenter Tan's IPO as market sentiment remains negative. It's just not a good time," said Linus Yip, a strategist at First Shanghai Securities.

"The investor mood has changed," Yip said. "Earlier, they would pounce on any IPO, even without knowing what the company did."

Born into a family of carpenters in a remote Sichuan village and losing his right hand in an accident at 18, Carpenter Tan CEO Tan Chuanhua founded the comb company 13 years ago, starting with a small store and selling combs at 2 yuan each.

The company has since morphed into a stylish chain, with Carpenter Tan becoming a household brand name on the mainland. It has over 700 stores across the country and recorded a net profit of 41 million yuan ($5.77 million) in 2007, a 36 percent year-on-year jump from 2006's 30 million yuan.

The comb maker is targeting 50 million yuan in profit this year, according to Raymond Law.

It sells combs for between HK$60 and more than HK$1,000 apiece in Hong Kong, and from 30 yuan to several hundred yuan on the mainland.

With Hong Kong as an ideal springboard to tap into the international market, Carpenter Tan plans to operate 10 stores in the city. The first two stores were opened in Central last summer.

"Our management believes Hong Kong is the best city for overseas expansion. It can serve as a window to the world, which is ideal for Carpenter Tan to promote its products globally," Law said.

The company also has a couple of department store counters in Taiwan province and is planning to open stores in Singapore.

Law said rising costs won't have much of an impact on the company's growth. "We have located our manufacturing base in Wanzhou - a town about 400 km from Chongqing - where costs are relatively low," Law said.

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