Perennial Energy Holdings Ltd. (2798) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kinetic Development Group Ltd.

Shougang Fushan Resources Group Ltd.

Mongolian Mining Corp.

E-Commodities Holdings Ltd.

Perennial Energy Holdings Ltd.

China Coal Energy Co., Ltd.

Yankuang Energy Group Co., Ltd.

China Qinfa Group Ltd.

Hidili Industry International Development Ltd.

Henan JinMa Energy Co., Ltd.

China Shenhua Energy Co., Ltd.

Why is Perennial Energy Holdings Ltd. ?

High Management Efficiency with a high ROCE of 24.95%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 23.33

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at HKD -748.1 MM
ROCE(HY) Lowest at -6.51%
RAW MATERIAL COST(Y) Grown by 49.82% (YoY)

With ROE of 5.84%, it has a Attractive valuation with a 0.53 Price to Book Value

Over the past year, while the stock has generated a return of 28.57%, its profits have fallen by -69.6%

Market Beating Performance

The stock has generated a return of 28.57% in the last 1 year, much higher than market (Hang Seng Hong Kong) returns of 8.76%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Perennial Energy Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Perennial Energy Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Perennial Energy Holdings Ltd.

28.57%

-0.39

46.62%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.70%

EBIT Growth (5y)

-4.46%

EBIT to Interest (avg)

23.33

Debt to EBITDA (avg)

0.88

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

0.50

Tax Ratio

16.09%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

24.95%

ROE (avg)

23.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.53

EV to EBIT

9.72

EV to EBITDA

9.17

EV to Capital Employed

0.64

EV to Sales

1.90

PEG Ratio

Dividend Yield

ROCE (Latest)

6.62%

ROE (Latest)

5.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 26.54 times

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD -748.1 MM

ROCE(HY)

Lowest at -6.51%

RAW MATERIAL COST(Y)

Grown by 49.82% (YoY

CASH AND EQV(HY)

Lowest at HKD 96.02 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.65 times

NET SALES(Q)

Fallen at -25.98%

PRE-TAX PROFIT(Q)

Fallen at -88.88%

NET PROFIT(Q)

Fallen at -94.37%

EPS(Q)

Lowest at HKD -0.14

Here's what is working for Perennial Energy Holdings Ltd.

Inventory Turnover Ratio

Highest at 26.54 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at HKD 11.22 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 11.22 MM has Grown at 57.59%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Perennial Energy Holdings Ltd.

Operating Cash Flow

Lowest at HKD -748.1 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Sales

Fallen at -25.98%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Pre-Tax Profit

Fallen at -88.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Fallen at -94.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 96.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 49.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales