SEHK:725

Stock Analysis Report

Perennial International

Executive Summary

Perennial International Limited, an investment holding company, manufactures and trades in electric cables and wire products.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Perennial International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 725 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

725

-4.6%

HK Electrical

-2.7%

HK Market


1 Year Return

-30.0%

725

-34.1%

HK Electrical

-8.5%

HK Market

Return vs Industry: 725 exceeded the Hong Kong Electrical industry which returned -34.7% over the past year.

Return vs Market: 725 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

725IndustryMarket
7 Day6.1%-4.6%-2.7%
30 Day1.4%-3.5%-3.1%
90 Day4.5%0.6%2.4%
1 Year-30.0%-30.0%-33.0%-34.1%-5.2%-8.5%
3 Year-59.0%-59.5%-48.8%-50.9%12.0%0.7%
5 Year-42.2%-44.0%-52.5%-55.3%14.1%-4.7%

Price Volatility Vs. Market

How volatile is Perennial International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Perennial International undervalued compared to its fair value and its price relative to the market?

26.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 725's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 725's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 725 is poor value based on its PE Ratio (26.9x) compared to the Electrical industry average (9.1x).

PE vs Market: 725 is poor value based on its PE Ratio (26.9x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 725's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 725 is good value based on its PB Ratio (0.2x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is Perennial International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Perennial International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Perennial International performed over the past 5 years?

-23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 725 has a large one-off gain of HK$4.8M impacting its June 30 2019 financial results.

Growing Profit Margin: 725's current net profit margins (1.5%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: 725's earnings have declined by -23.2% per year over the past 5 years.

Accelerating Growth: 725's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 725 had negative earnings growth (-41.5%) over the past year, making it difficult to compare to the Electrical industry average (6%).


Return on Equity

High ROE: 725's Return on Equity (0.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Perennial International's financial position?


Financial Position Analysis

Short Term Liabilities: 725's short term assets (HK$258.9M) exceed its short term liabilities (HK$121.1M).

Long Term Liabilities: 725's short term assets (HK$258.9M) exceed its long term liabilities (HK$44.4M).


Debt to Equity History and Analysis

Debt Level: 725's debt to equity ratio (13.7%) is considered satisfactory.

Reducing Debt: 725's debt to equity ratio has increased from 10.1% to 13.7% over the past 5 years.

Debt Coverage: 725's debt is not well covered by operating cash flow (7%).

Interest Coverage: 725's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: 725 has a high level of physical assets or inventory.

Debt Coverage by Assets: 725's debt is covered by short term assets (assets are 3.2x debt).


Next Steps

Dividend

What is Perennial International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 725's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 725's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 725's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 725's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 725 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 725's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Chung Mon (69yo)

14.4yrs

Tenure

HK$4,790,000

Compensation

Mr. Chung Hung Mon is the Founder, Chief Executive Officer, Deputy Chairman and Executive Director of Perennial International Ltd. Mr. Mon has been its Chief Executive Officer since September 1, 2005. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Chung's total compensation ($USD614.58K) is above average for companies of similar size in the Hong Kong market ($USD225.00K).

Compensation vs Earnings: Chung's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Chung Mon
Founder14.4yrsHK$4.79m0.14% HK$198.8k
Yuk Siu
Sales Director & Executive Director0yrsHK$808.00kno data
Tiffany Mon
Marketing Communications Manager & Executive Director16.8yrsHK$892.00kno data
Wai Mon
Executive Director13.4yrsHK$378.00kno data
Sai Seto
Chief Financial Officer1.4yrsno datano data
Victor Krassovski
Director of Operations1.5yrsno datano data
Wing Lai
Finance Manager & Company Secretary0.9yrsno datano data

1.5yrs

Average Tenure

46yo

Average Age

Experienced Management: 725's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chung Mon
Founder14.4yrsHK$4.79m0.14% HK$198.8k
Yuk Siu
Sales Director & Executive Director0yrsHK$808.00kno data
Tiffany Mon
Marketing Communications Manager & Executive Director16.8yrsHK$892.00kno data
Wai Mon
Executive Director13.4yrsHK$378.00kno data
Chun Lau
Independent Non-Executive Director24.1yrsHK$180.00k0.069% HK$96.6k
Di Koo
Chairman14.4yrsHK$1.52m2.64% HK$3.7m
Chung Lee
Independent Non-Executive Director9.6yrsHK$84.00kno data
Kit Chung
Independent Non-Executive Director2.2yrsHK$120.00kno data

13.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 725's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Perennial International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Perennial International Limited
  • Ticker: 725
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: HK$139.271m
  • Shares outstanding: 198.96m
  • Website: https://perennial.todayir.com/en/index.php

Number of Employees


Location

  • Perennial International Limited
  • Greenfield Tower
  • Units 2002-2006, 20th Floor
  • Tsimshatsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
725SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1997

Biography

Perennial International Limited, an investment holding company, manufactures and trades in electric cables and wire products. It offers power cords, power cord sets, cables and solid wires, wire harnesses, accessories, and plastic resins and compounds. The company also engages in property, license, and leasehold land holding activities. It serves multi-national producers of electrical and electronic products primarily in the United States, Europe, Australia, Mainland China, Japan, and Southeast Asia. The company was founded in 1989 and is headquartered in Tsimshatsui, Hong Kong. Perennial International Limited is a subsidiary of Spector Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 12:44
End of Day Share Price2020/02/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.