SGX:40S

Stock Analysis Report

Perennial Real Estate Holdings

Executive Summary

Perennial Real Estate Holdings Limited, together with its subsidiaries, operates as an integrated real estate and healthcare company.


Snowflake Analysis

Moderate growth potential and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 40S has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

40S

-1.0%

SG Real Estate

-0.3%

SG Market


1 Year Return

-17.1%

40S

-0.2%

SG Real Estate

2.1%

SG Market

Return vs Industry: 40S underperformed the SG Real Estate industry which returned 1.1% over the past year.

Return vs Market: 40S underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

40SIndustryMarket
7 Day0%-1.0%-0.3%
30 Day0.9%1.6%1.4%
90 Day0%3.7%2.8%
1 Year-16.6%-17.1%2.9%-0.2%6.3%2.1%
3 Year-25.1%-26.7%5.7%-2.7%14.9%2.6%
5 Year-47.2%-48.6%-2.9%-15.3%11.1%-7.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Perennial Real Estate Holdings undervalued compared to its fair value and its price relative to the market?

0.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 40S (SGD0.54) is trading above our estimate of fair value (SGD0.05)

Significantly Below Fair Value: 40S is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 40S is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: 40S is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 40S's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 40S is good value based on its PB Ratio (0.3x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Perennial Real Estate Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 40S is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: 40S is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 40S's is expected to become profitable in the next 3 years.

Revenue vs Market: 40S's revenue (2.9% per year) is forecast to grow slower than the SG market (5.6% per year).

High Growth Revenue: 40S's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 40S is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Perennial Real Estate Holdings performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 40S is currently unprofitable.

Growing Profit Margin: 40S is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 40S is unprofitable, but has reduced losses over the past 5 years at a rate of 14.2% per year.

Accelerating Growth: Unable to compare 40S's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 40S is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-7.2%).


Return on Equity

High ROE: 40S has a negative Return on Equity (-0.24%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Perennial Real Estate Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 40S's short term assets (SGD1.4B) do not cover its short term liabilities (SGD1.5B).

Long Term Liabilities: 40S's short term assets (SGD1.4B) do not cover its long term liabilities (SGD2.3B).


Debt to Equity History and Analysis

Debt Level: 40S's debt to equity ratio (80.8%) is considered high.

Reducing Debt: 40S's debt to equity ratio has increased from 71.9% to 80.8% over the past 5 years.

Debt Coverage: 40S's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 40S's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 40S has a high level of physical assets or inventory.

Debt Coverage by Assets: 40S's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Perennial Real Estate Holdings's current dividend yield, its reliability and sustainability?

0.75%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.4%markettop25%5.5%industryaverage3.1%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: 40S's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: 40S's dividend (0.74%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: 40S is not paying a notable dividend for the SG market, therefore no need to check if payments are stable.

Growing Dividend: 40S is not paying a notable dividend for the SG market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 40S is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 40S's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Seck Guan Pua (55yo)

0yrs

Tenure

S$1,971,000

Compensation

Mr. Pua Seck Guan has been the Chief Executive Officer of Perennial Real Estate Holdings Limited since October 27, 2014. Mr. Pua has been an Executive Director of Perennial Real Estate Holdings Limited sin ...


CEO Compensation Analysis

Compensation vs Market: Seck Guan's total compensation ($USD1.46M) is above average for companies of similar size in the SG market ($USD857.52K).

Compensation vs Earnings: Seck Guan's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: 40S's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 40S's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: 40S insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$331,39121 Nov 19
Khoon Kuok
EntityIndividual
Role
Chairman of the Board
Chairman
Shares636,800
Max PriceS$0.52
BuyS$251,07108 Aug 19
Seck Guan Pua
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares419,200
Max PriceS$0.60
BuyS$84,75708 Aug 19
Seck Guan Pua
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares134,900
Max PriceS$0.63
BuyS$61,00023 Jul 19
Khoon Kuok
EntityIndividual
Role
Chairman of the Board
Chairman
Shares100,000
Max PriceS$0.61
BuyS$34,52619 Jul 19
Khoon Kuok
EntityIndividual
Role
Chairman of the Board
Chairman
Shares56,600
Max PriceS$0.61
BuyS$3,17218 Jul 19
Khoon Kuok
EntityIndividual
Role
Chairman of the Board
Chairman
Shares5,200
Max PriceS$0.61
BuyS$64,76713 Jun 19
Seck Guan Pua
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares103,100
Max PriceS$0.63
BuyS$263,49224 May 19
Seck Guan Pua
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares412,000
Max PriceS$0.64
BuyS$211,61023 May 19
Seck Guan Pua
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares339,100
Max PriceS$0.62
BuyS$51,20013 May 19
Longhlin Asia Ltd
EntityCompany
Shares80,000
Max PriceS$0.64
BuyS$20,80010 May 19
Longhlin Asia Ltd
EntityCompany
Shares32,500
Max PriceS$0.64

Ownership Breakdown

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


Management Team

  • Joanna Low

    Chief Investment Officer

    • Tenure: 1yrs
  • Belinda Gan

    Chief Financial Officer

    • Tong Ka-Pin

      Chief Corporate Officer

      • Tenure: 1yrs
    • Annie Lee

      Deputy Chief Executive Officer - Singapore

      • Tenure: 2.5yrs
    • Ivan Koh

      Chief Executive Officer of China

      • Seck Guan Pua (55yo)

        CEO & Executive Director

        • Compensation: S$1.97m
      • Kong Cheng Lim

        Head of Project Management

        • Tenure: 8yrs
      • Boon Pheng Tan

        Head of Design Management

        • Tenure: 8yrs
      • Celeste Tay

        Head of Human Resource

        • Tenure: 0.8yrs
      • Kim Xi Teh

        Head of Legal Department & Joint Company Secretary


        Board Members

        • Phuay Hee Chua (66yo)

          Independent Non-Executive Director

          • Tenure: 5.3yrs
          • Compensation: S$145.00k
        • Eugene Paul Look (56yo)

          Lead Independent Non-Executive Director

          • Compensation: S$170.00k
        • Ron Sim (61yo)

          Vice-Chairman

          • Compensation: S$55.00k
        • Suan Hiang Lee (69yo)

          Independent Non-Executive Director

          • Tenure: 5.3yrs
          • Compensation: S$160.00k
        • Khoon Kuok (70yo)

          Chairman

          • Tenure: 5.3yrs
          • Compensation: S$55.00k
        • Seck Guan Pua (55yo)

          CEO & Executive Director

          • Compensation: S$1.97m
        • Eng Ooi (63yo)

          Independent Non-Executive Director

          • Tenure: 4.5yrs
          • Compensation: S$117.00k

        Company Information

        Perennial Real Estate Holdings Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Perennial Real Estate Holdings Limited
        • Ticker: 40S
        • Exchange: SGX
        • Founded: 2002
        • Industry: Real Estate Operating Companies
        • Sector: Real Estate
        • Market Cap: S$880.706m
        • Shares outstanding: 1.66b
        • Website: https://www.perennialrealestate.com.sg

        Number of Employees


        Location

        • Perennial Real Estate Holdings Limited
        • AXA Tower
        • No. 36-01, 8 Shenton Way
        • Singapore
        • 68811
        • Singapore

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        40SSGX (Singapore Exchange)YesOrdinary SharesSGSGDDec 2014

        Biography

        Perennial Real Estate Holdings Limited, together with its subsidiaries, operates as an integrated real estate and healthcare company. The company operates through Singapore, China, Management Businesses, and Corporate and Others segments. It invests in, owns, develops, and manages real estate properties. The company primarily focuses on mixed-use developments comprising retail properties, offices/SOHOs, hotels/serviced apartments, residential and healthcare properties, event venue/convention centers, and integrated developments. Its real estate portfolio comprises 12 integrated developments, as well as 7 retail, commercial, and residential developments with a total gross floor area of approximately 65 million square feet in Singapore, China, Malaysia, Indonesia, and Ghana. The company also owns, operates, and provides medical and healthcare services, including hospitals and medical centers, and eldercare and senior housing, as well as supports specialties in rehabilitation, diagnostic imaging, plastic surgery, maternal and child health management, health screening, pediatrics, and dentistry. Its healthcare portfolio comprises 6,382 operating beds in 8 cities across China. In addition, the company provides asset management, and development and project management services. Perennial Real Estate Holdings Limited was incorporated in 2002 and is headquartered in Singapore. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 12:38
        End of Day Share Price2020/01/23 00:00
        Earnings2019/09/30
        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.