Perennial International (0725) AI Stock Analysis

• Market Cap: HK$127.33M
• Dividend Yield: 4.69%
• Average Volume (3M): 30.13K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.03
• Revenue Growth: 8.25%
• EPS Growth: 63.97%
• Country: HK
• Employees: 880
• Sector: Industrials
• Sector Strength: 87
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.09
• Shares Outstanding: 198,958,000
• 10 Day Avg. Volume: 200
• 30 Day Avg. Volume: 30,133
• PEG Ratio: 0.44
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$0.50 ▼(-21.88%Downside)

Perennial International's stock score is primarily driven by its strong financial performance and attractive valuation. The robust balance sheet and improved profitability contribute positively, while the undervaluation enhances the stock's appeal. The technical analysis adds a moderate score due to bullish momentum, but the high RSI suggests caution. Overall, the stock is positioned well, with valuation being a significant positive factor.

Perennial International Business Overview & Revenue Model

Company Description

Perennial International Limited (0725) is a company engaged in the manufacturing and distribution of a wide range of electronic wire and cable products. The company operates primarily within the electronics and telecommunications sectors, providing essential components that are integral to the infrastructure and functioning of these industries. Its product offerings include power cords, cable assemblies, and other wire and cable products that cater to both consumer electronics and industrial applications.

How the Company Makes Money

Perennial International generates revenue primarily through the sale of its electronic wire and cable products. The company's key revenue streams include the manufacturing of power cords, cable assemblies, and various types of electronic cables that are sold to electronics manufacturers, telecommunications companies, and industrial clients. By serving a diverse range of sectors with its essential products, Perennial International benefits from sustained demand across multiple industries. Additionally, the company may engage in partnerships or agreements with large-scale manufacturers and distributors to enhance its market reach and secure stable revenue flows. However, specific partnerships or agreements contributing to its earnings are not detailed.

Perennial International Financial Statement Overview

Summary

Perennial International exhibits strong financials with good revenue growth, improved profitability, and a solid balance sheet with low leverage. The main concern is the declining trend in free cash flow growth, but overall, the financial condition is robust.

Income Statement

Perennial International shows positive revenue growth with a 8.25% increase from 2023 to 2024. The gross profit margin remains solid at 28.74%, up from 28.48% in 2023. Net profit margin improved significantly to 7.85% from 5.19%, indicating enhanced profitability. EBIT and EBITDA margins are also healthy at 9.01% and 12.54%, respectively. Overall, the income statement reflects strong revenue growth and improving profitability.

Balance Sheet

The debt-to-equity ratio is extremely low, indicating minimal leverage risk. The company has a high equity ratio of 87.01%, suggesting strong financial stability with a solid equity base. Return on equity is at 5.98%, which is a decent return for the shareholders. The balance sheet is robust, with strong equity and low debt levels, providing a solid foundation for future growth.

Cash Flow

Free cash flow growth was negative, declining from 2023's level. The operating cash flow to net income ratio is 0.84, demonstrating good cash generation relative to net income. The free cash flow to net income ratio is 0.63, indicating that not all net income is translating into free cash flow. While cash flow generation is solid, the decline in free cash flow growth is a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	328.58M	303.53M	324.52M	373.47M	282.34M
Gross Profit	94.41M	86.43M	74.57M	79.92M	52.77M
EBITDA	38.59M	28.28M	34.59M	37.27M	308.00K
Net Income	25.80M	15.75M	18.51M	13.69M	-19.23M
Balance Sheet
Total Assets	495.98M	454.85M	661.83M	727.73M	685.98M
Cash, Cash Equivalents and Short-Term Investments	61.01M	46.72M	21.05M	19.31M	22.37M
Total Debt	47.00K	501.00K	22.85M	74.90M	45.80M
Total Liabilities	64.33M	45.33M	95.73M	158.68M	136.70M
Stockholders Equity	431.65M	409.52M	566.11M	569.06M	549.28M
Cash Flow
Free Cash Flow	16.35M	54.27M	58.24M	-32.31M	8.05M
Operating Cash Flow	21.66M	58.53M	59.92M	-23.10M	24.92M
Investing Cash Flow	-3.04M	-11.30M	-1.62M	-8.40M	-16.80M
Financing Cash Flow	-4.38M	-29.19M	-56.03M	28.20M	-23.16M

Perennial International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0725, the sentiment is Neutral. The current price of 0.64 is below the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.62, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0725.

Perennial International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0725	73 Outperform	HK$127.33M	4.93	6.14%	4.69%	8.25%	63.97%
1710	60 Neutral	HK$142.00M	16.51	2.07%	8.45%	-13.16%	-81.74%
Sector *	56 Neutral	HK$4.00B	-0.52	10.69%	5.37%	-6.34%	-55.88%
1166	53 Neutral	HK$50.46M	―	-6.76%	―	-29.37%	75.02%
1539	52 Neutral	HK$1.36B	37.98	13.78%	―	58.29%	-85.39%
1750	50 Neutral	HK$57.60M	35.56	0.99%	―	-15.58%	-76.92%
1399	50 Neutral	HK$215.82M	4.70	-1.11%	―	-14.43%	-161.66%

Perennial International Corporate Events

Perennial International Passes All Resolutions at AGM

Perennial International Limited, a company listed on the Hong Kong Stock Exchange, held its Annual General Meeting on May 20, 2025, where all proposed resolutions were passed by shareholders. The resolutions included the adoption of financial statements, approval of a final dividend, re-election of directors, re-appointment of auditors, and granting of mandates to the board regarding share allotment and repurchase. This successful AGM reflects strong shareholder support and positions the company for continued operational and strategic initiatives.

Perennial International Announces Annual General Meeting and Key Resolutions

Perennial International Limited has announced its upcoming Annual General Meeting scheduled for May 20, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, approval of a final dividend of HK$0.03 per share, re-election of directors, and reappointment of auditors. Additionally, the company seeks approval to allow directors to allot and issue shares under certain conditions, potentially impacting the company’s capital structure and shareholder value.