SEHK:3326

Stock Analysis Report

Perfect Group International Holdings

Executive Summary

Perfect Group International Holdings Limited, an investment holding company, engages in the design, manufacture, export, and sale of fine diamond jewelry products primarily with diamonds worldwide.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Risks

  • Perfect Group International Holdings is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

9.1%

SEHK:3326

1.6%

HK Luxury

1.2%

HK Market


1 Year Return

24.1%

SEHK:3326

0.3%

HK Luxury

-9.5%

HK Market

3326 outperformed the Luxury industry which returned 0.3% over the past year.

3326 outperformed the Market in Hong Kong which returned -9.5% over the past year.


Share holder returns

3326IndustryMarket
7 Day9.1%1.6%1.2%
30 Day-1.4%-1.9%-8.0%
90 Day9.1%3.0%-5.9%
1 Year31.8%24.1%3.9%0.3%-6.2%-9.5%
3 Year1.7%-7.7%39.3%22.4%14.5%3.1%
5 Yearn/a28.7%3.6%8.5%-9.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Perfect Group International Holdings undervalued based on future cash flows and its price relative to the stock market?

11.54x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Perfect Group International Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Perfect Group International Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Perfect Group International Holdings is overvalued based on earnings compared to the HK Luxury industry average.

Perfect Group International Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Perfect Group International Holdings is overvalued based on assets compared to the HK Luxury industry average.


Next Steps

Future Growth

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

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Perfect Group International Holdings is high growth as no revenue estimate data is available.

Perfect Group International Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

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

Perfect Group International Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Perfect Group International Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Perfect Group International Holdings performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Perfect Group International Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Perfect Group International Holdings's 1-year earnings growth exceeds its 5-year average (117.3% vs -6.7%)

Perfect Group International Holdings's earnings growth has exceeded the HK Luxury industry average in the past year (117.3% vs 1.2%).


Return on Equity

Perfect Group International Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Perfect Group International Holdings used its assets more efficiently than the HK Luxury industry average last year based on Return on Assets.


Return on Capital Employed

Perfect Group International Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Perfect Group International Holdings's financial position?


Financial Position Analysis

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

Perfect Group International Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Perfect Group International Holdings's level of debt (9.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (21.5% vs 9.3% today).

Debt is well covered by operating cash flow (324.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 52.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 19x debt.


Next Steps

Dividend

What is Perfect Group International Holdings's current dividend yield, its reliability and sustainability?

2.78%

Current Dividend Yield


Dividend Yield and Payments Analysis

Perfect Group International Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Perfect Group International Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.19%).

Whilst dividend payments have been stable, Perfect Group International Holdings has been paying a dividend for less than 10 years.

Perfect Group International Holdings has only been paying a dividend for 3 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.2x coverage).


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 Perfect Group International Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Kin Kan (60yo)

4.0yrs

Tenure

HK$3,733,000

Compensation

Mr. Kin Kwong Kan is Founder of Perfect Group International Holdings Limited and has been its Chairman, Chief Executive Officer and Executive Director since August 2015 and was appointed as its Director si ...


CEO Compensation Analysis

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

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


Management Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

The tenure for the Perfect Group International Holdings management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

59yo

Average Age

The tenure for the Perfect Group International Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellHK$1,259,13522 Nov 18
Chin Yui Chow
EntityIndividual
Shares1,431,000
Max PriceHK$0.88
BuyHK$81,00101 Nov 18
Cheuk Wai Li
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares180,000
Max PriceHK$0.45
BuyHK$404,73025 Oct 18
Kin Kan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares900,000
Max PriceHK$0.45
BuyHK$338,99828 Sep 18
Kin Kan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares678,000
Max PriceHK$0.50
BuyHK$299,99828 Sep 18
Kin Kan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares600,000
Max PriceHK$0.50

Ownership Breakdown


Management Team

  • Chun Wa Tam (56yo)

    CFO & Company Secretary

    • Tenure: 2.5yrs
  • Dingding He (42yo)

    Deputy Chief Executive Officer

    • Tenure: 1.4yrs
    • Compensation: HK$60.00k
  • Kin Kan (60yo)

    Chairman & CEO

    • Tenure: 4.0yrs
    • Compensation: HK$3.73m
  • Kan Shek (54yo)

    Executive Director

    • Tenure: 4.0yrs
    • Compensation: HK$1.72m
  • Chi Chung (58yo)

    Executive Director

    • Tenure: 4.0yrs
    • Compensation: HK$1.72m
  • Pansy Kong (52yo)

    Human Resources & Administrative Director

    • Tenure: 8.1yrs

Board Members

  • Paul Fan (77yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$336.00k
  • Frederick Wong (63yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$336.00k
  • Cheuk Wai Li (48yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$336.00k
  • Kin Kan (60yo)

    Chairman & CEO

    • Tenure: 4.0yrs
    • Compensation: HK$3.73m
  • Kan Shek (54yo)

    Executive Director

    • Tenure: 4.0yrs
    • Compensation: HK$1.72m
  • Chi Chung (58yo)

    Executive Director

    • Tenure: 4.0yrs
    • Compensation: HK$1.72m

Company Information

Perfect Group International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Perfect Group International Holdings Limited
  • Ticker: 3326
  • Exchange: SEHK
  • Founded: 1985
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$931.500m
  • Shares outstanding: 1.35b
  • Website: https://www.hkperjew.com.hk

Number of Employees


Location

  • Perfect Group International Holdings Limited
  • YHC Tower
  • 26th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3326SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2016

Biography

Perfect Group International Holdings Limited, an investment holding company, engages in the design, manufacture, export, and sale of fine diamond jewelry products primarily with diamonds worldwide. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 12:55
End of Day Share Price2019/08/20 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.