External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>Carriage Services is a leading provider of funeral and cemetery services in the US, with operations in funeral home and cemetery services</li><li>Main revenue comes from funeral home operations, including burial services, cremation, and merchandise</li><li>Company distinguishes between atneed and preneed services, with majority of contracts falling into preneed category and funds swept into trust for returns on capital, making it an attractive investment option.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Carriage Services is a leading provider of funeral and cemetery services in the US, with operations in funeral home and cemetery servicesMain revenue comes from funeral home operations, including burial services, cremation, and merchandiseCompany distinguishes between atneed and preneed services, with majority of contracts falling into preneed category and funds swept into trust for returns on capital, making it an attractive investment option.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Carriage Services Inc (CSV) - Monday, Mar 18, 2024

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fu-shou-yuan-international" target="_blank" data-smartkarma-citation="entities:18168:1" rel="noopener">Fu Shou Yuan (1448 HK)</a> has a solid 1H23 with net profit jumped 78% YoY. Its margin reached the highest level, reflecting resurgance in demand and good cost control.</li>
<li>Both volume and ASP growth led us to believe there is positive room for profitability improvements. Its balance sheet has also strengthened with net cash equals 17% of share price.</li>
<li>A 18.4% increase in pre-need contracts signed suggests encouraging underlying demand. More M&amp;As are added drivers to earnings prospects.</li>
</ul>



Fu Shou Yuan (1448 HK) has a solid 1H23 with net profit jumped 78% YoY. Its margin reached the highest level, reflecting resurgance in demand and good cost control.
Both volume and ASP growth led us to believe there is positive room for profitability improvements. Its balance sheet has also strengthened with net cash equals 17% of share price.
A 18.4% increase in pre-need contracts signed suggests encouraging underlying demand. More M&amp;As are added drivers to earnings prospects.


Fu Shou Yuan (1448 HK): More than Just a Recovery from Low Base

<ul>
<li>After a dip in earnings in FY22, <a href="https://www.smartkarma.com/entities/fu-shou-yuan-international" target="_blank" data-smartkarma-citation="entities:18168:1" rel="noopener">Fu Shou Yuan (1448 HK)</a> guides for an encouraging rebound in FY23 with at least 35% revenue and 30-35% net profit growth.</li>
<li>We think the 12.7% growth in earnings in 2H22, against -28.9% in 1H22, showed that pandemic impact has faded. It is still very well positioned to benefit from aging population. </li>
<li>Net cash equals 19% of its share price and its 13.9x PER for FY23 is not expensive relative to peers. We estimate, ex-cash, ROE is at a high of 24%. </li>
</ul>


After a dip in earnings in FY22, Fu Shou Yuan (1448 HK) guides for an encouraging rebound in FY23 with at least 35% revenue and 30-35% net profit growth.
We think the 12.7% growth in earnings in 2H22, against -28.9% in 1H22, showed that pandemic impact has faded. It is still very well positioned to benefit from aging population. 
Net cash equals 19% of its share price and its 13.9x PER for FY23 is not expensive relative to peers. We estimate, ex-cash, ROE is at a high of 24%. 


Fu Shou Yuan (1448 HK): Key Takeaways from Post-FY22 Call

<ul>
<li>The volatile market environment prompted us to seek for companies with secured demand, high earnings quality and solid financial position - <a href="https://www.smartkarma.com/entities/fu-shou-yuan-international" target="_blank" data-smartkarma-citation="entities:18168:1" rel="noopener">Fu Shou Yuan International (1448 HK)</a> fits these criteria.</li>
<li>It has established earnings record, favourable demographic environment, good reserve for growth and upside from geographical expansion. We like its emphasis on shareholder return through rising payout and share buyback. </li>
<li>Its net cash position, which amounted to 20% of the market capitalisation, adds further comfort to us. Meanwhile, valuations are not stretched relative to international peers.</li>
</ul>


The volatile market environment prompted us to seek for companies with secured demand, high earnings quality and solid financial position - Fu Shou Yuan International (1448 HK) fits these criteria.
It has established earnings record, favourable demographic environment, good reserve for growth and upside from geographical expansion. We like its emphasis on shareholder return through rising payout and share buyback. 
Its net cash position, which amounted to 20% of the market capitalisation, adds further comfort to us. Meanwhile, valuations are not stretched relative to international peers.


Fu Shou Yuan (1448 HK): An Everlasting Growth Business

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fu-shou-yuan-international" target="_blank" data-smartkarma-citation="entities:18168:1" rel="noopener">Fu Shou Yuan (1448 HK)</a>'s net profit grew 20.1% in FY23; and if not a withholding tax of Rmb87.4m, its net profit would have increased by over 30%.  </li>
<li>Including a special DPS of HK$0.2139, full-year payout ratio reached 98.5%. Still, it has net cash of Rmb2.7bn or 24% of its market capitalisation.</li>
<li>Profitability outlook is encouraging - structural demand increase, higher ASP, and well-contained costs. Its land reserve is enough to be consumed for 82 years.</li>
</ul>



Fu Shou Yuan (1448 HK)'s net profit grew 20.1% in FY23; and if not a withholding tax of Rmb87.4m, its net profit would have increased by over 30%.  
Including a special DPS of HK$0.2139, full-year payout ratio reached 98.5%. Still, it has net cash of Rmb2.7bn or 24% of its market capitalisation.
Profitability outlook is encouraging - structural demand increase, higher ASP, and well-contained costs. Its land reserve is enough to be consumed for 82 years.


Fu Shou Yuan (1448 HK): As Solid as It Goes

United States

Carriage Services, Inc. operates funeral homes and cemeteries in the United States.  The Company provides a complete range of services relating to funerals, burials, and cremations.  Carriage also sells related products and merchandise such as caskets, burial vaults, garments, and memorials.

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Carriage Services (CSV US)

Carriage Services Inc (CSV) - Monday, Mar 18, 2024

Carriage Services is a leading provider of funeral and cemetery services in the US, with operations in funeral home and cemetery services

Value Investors Club

Fu Shou Yuan (1448 HK): More than Just a Recovery from Low Base

We like Fu Shou Yuan for its sustained quality earnings stream and solid position in capturing the demand of China's aging population. The strong...

Osbert Tang, CFA

Fu Shou Yuan (1448 HK): Key Takeaways from Post-FY22 Call

Guidances for at least 35% revenue and 30-35% net profit growth in FY23 look encouraging to us. Net cash amounted to 19% share price and valuations...

Osbert Tang, CFA

Fu Shou Yuan (1448 HK): An Everlasting Growth Business

Fu Shou Yuan offers good insulation from economic downturn from its unique exposure to the death care service market in China. It has strong cash...

Osbert Tang, CFA

Fu Shou Yuan (1448 HK): As Solid as It Goes

Fu Shou Yuan sees 20.1% net profit growth in FY23, hindered by withholding tax. Its outlook is strong with high cash reserves and long-term land...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Carriage Services Inc (CSV) - Monday, Mar 18, 2024

Carriage Services is a leading provider of funeral and cemetery services in the US, with operations in funeral home and cemetery services

Value Investors Club

Fu Shou Yuan (1448 HK): More than Just a Recovery from Low Base

We like Fu Shou Yuan for its sustained quality earnings stream and solid position in capturing the demand of China's aging population. The strong...

Osbert Tang, CFA

Fu Shou Yuan (1448 HK): Key Takeaways from Post-FY22 Call

Guidances for at least 35% revenue and 30-35% net profit growth in FY23 look encouraging to us. Net cash amounted to 19% share price and valuations...

Osbert Tang, CFA

Fu Shou Yuan (1448 HK): An Everlasting Growth Business

Fu Shou Yuan offers good insulation from economic downturn from its unique exposure to the death care service market in China. It has strong cash...

Osbert Tang, CFA

Fu Shou Yuan (1448 HK): As Solid as It Goes

​Fu Shou Yuan sees 20.1% net profit growth in FY23, hindered by withholding tax. Its outlook is strong with high cash reserves and long-term land...

Osbert Tang, CFA

Fu Shou Yuan sees 20.1% net profit growth in FY23, hindered by withholding tax. Its outlook is strong with high cash reserves and long-term land...