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

Fundamentals

Mediocre balance sheet with moderate growth potential.

Risks

  • Perennial International is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

SEHK:725

1.8%

HK Electrical

3.9%

HK Market


1 Year Return

-31.6%

SEHK:725

-26.8%

HK Electrical

-8.1%

HK Market

725 underperformed the Electrical industry which returned -26.2% over the past year.

725 underperformed the Market in Hong Kong which returned -9.3% over the past year.


Share holder returns

725IndustryMarket
7 Day-1.0%1.8%3.9%
30 Day-1.0%-1.8%3.5%
90 Day-1.9%-12.5%-3.7%
1 Year-31.6%-31.6%-25.3%-26.8%-4.6%-8.1%
3 Year-41.8%-42.5%-27.8%-30.1%37.0%24.6%
5 Year10.1%5.1%-24.0%-28.4%28.4%7.1%

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 based on future cash flows and its price relative to the stock market?

0.36x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Perennial International to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Perennial International to establish if it is available at substantial discount.


Price Based on Earnings

Perennial International is loss making, we can't compare its value to the HK Electrical industry average.

Perennial International is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Perennial International, we can't assess if its growth is good value.


Price Based on Value of Assets

Perennial International is good value based on assets compared to the HK Electrical industry average.


Next Steps

Future Growth

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

33.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Perennial International is high growth as no revenue estimate data is available.

Perennial International's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Perennial International's revenue growth to the Hong Kong market average as no estimate data is available.

Perennial International's earnings growth is expected to exceed the Hong Kong market average.

Perennial International's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Perennial International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Perennial International performed over the past 5 years?

-18.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Perennial International does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Perennial International's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Perennial International's 1-year growth to the HK Electrical industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Perennial International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Perennial International has efficiently used its assets last year compared to the HK Electrical industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Perennial International improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Perennial International's financial position?


Financial Position Analysis

Perennial International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Perennial International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Perennial International's level of debt (10.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (8.6% vs 10.6% today).

Debt is not well covered by operating cash flow (0.6%, less than 20% of total debt).

Unable to confirm if the interest payments on Perennial International's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Perennial International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Perennial International's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Perennial International has not reported any payouts.

Unable to verify if Perennial International's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Perennial International has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Perennial International's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Chung Mon (68yo)

13.8yrs

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

Chung's remuneration is higher than average for companies of similar size in Hong Kong.

Chung's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.8yrs

Average Tenure

45yo

Average Age

The average tenure for the Perennial International management team is less than 2 years, this suggests a new team.


Board Age and Tenure

13.2yrs

Average Tenure

62.5yo

Average Age

The average tenure for the Perennial International board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

BuyHK$85,22302 May 19
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Max PriceHK$0.90
BuyHK$12,88004 Dec 18
Spector Holdings Limited
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Shares14,000
Max PriceHK$0.92
BuyHK$3,52021 Nov 18
Spector Holdings Limited
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Shares4,000
Max PriceHK$0.88
BuyHK$60,00015 Nov 18
Spector Holdings Limited
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Shares60,000
Max PriceHK$1.00
BuyHK$19,70115 Nov 18
Spector Holdings Limited
EntityCompany
Shares22,000
Max PriceHK$0.90
BuyHK$19,44018 Oct 18
Chung Mon
EntityIndividual
Role
Founder
Vice Chairman
Shares18,000
Max PriceHK$1.08

Ownership Breakdown


Management Team

  • Marco Siu (59yo)

    Sales Director & Executive Director

    • Compensation: HK$808.00k
  • Chung Mon (68yo)

    Founder

    • Tenure: 13.8yrs
    • Compensation: HK$4.79m
  • Paul Seto (56yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Tiffany Mon (37yo)

    Marketing Communications Manager & Executive Director

    • Compensation: HK$892.00k
  • Vicky Mon (44yo)

    Executive Director

    • Compensation: HK$378.00k
  • Wing Lai (40yo)

    Finance Manager & Company Secretary

    • Tenure: 0.3yrs
  • Victor Krassovski (45yo)

    Director of Operations

    • Tenure: 0.8yrs

Board Members

  • Marco Siu (59yo)

    Sales Director & Executive Director

    • Compensation: HK$808.00k
  • Chung Mon (68yo)

    Founder

    • Tenure: 13.2yrs
    • Compensation: HK$4.79m
  • Chun Lau (69yo)

    Independent Non-Executive Director

    • Tenure: 23.4yrs
    • Compensation: HK$180.00k
  • Louise Koo (66yo)

    Chairman

    • Tenure: 13.8yrs
    • Compensation: HK$1.52m
  • Tiffany Mon (37yo)

    Marketing Communications Manager & Executive Director

    • Tenure: 16.2yrs
    • Compensation: HK$892.00k
  • Vicky Mon (44yo)

    Executive Director

    • Tenure: 12.8yrs
    • Compensation: HK$378.00k
  • Jones Lee (70yo)

    Independent Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: HK$84.00k
  • Kit Chung (42yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$120.00k

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$206.916m
  • Shares outstanding: 198.96m
  • Website: Click here

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/24 12:41
End of Day Share Price2019/06/21 00:00
Earnings2018/12/31
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.