Perennial International (0725) AI Stock Analysis

• Market Cap: HK$125.34M
• Dividend Yield: 7.94%
• Average Volume (3M): 38.33K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.04
• Revenue Growth: 8.25%
• EPS Growth: 63.97%
• Country: HK
• Employees: 880
• Sector: Industrials
• Sector Strength: 75
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.09
• Shares Outstanding: 198,958,000
• 10 Day Avg. Volume: 15,200
• 30 Day Avg. Volume: 38,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: -20.63% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: HK$0.50 ▼(-20.63% Downside)

Perennial International's strong valuation with a low P/E ratio and high dividend yield significantly boosts its attractiveness. Financial performance is solid, with good revenue growth and profitability, though declining free cash flow growth is a concern. Technical analysis indicates a neutral trend, with no strong momentum signals.

Perennial International Business Overview & Revenue Model

Company Description

Perennial International Limited (0725) is a Hong Kong-based company that primarily engages in the manufacturing and trading of electronic components and products. The company operates through several segments, including the manufacturing and sale of power cords, wire harnesses, and plastic products. Additionally, Perennial International caters to a diverse array of industries, offering customized solutions to meet the specific needs of its clients worldwide.

How the Company Makes Money

Perennial International makes money through the production and sale of electronic components and related products. The company's revenue model is centered around manufacturing power cords, wire harnesses, and plastic products, which are then sold to various industries, including consumer electronics, automotive, and telecommunications. Key revenue streams include direct sales to manufacturers and suppliers, along with potential long-term contracts with significant partners in related industries. The company’s earnings are influenced by its ability to maintain competitive pricing, manage production costs, and adapt to technological advancements and market demands.

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: 0.63
• 50DMA: Negative
• 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 0.63 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.64, and above the 200-day MA of 0.57, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 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	74 Outperform	HK$125.34M	4.86	6.14%	7.94%	8.25%	63.97%
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.71%	2.29%	-57.50%
1710	57 Neutral	HK$162.00M	18.84	2.07%	7.41%	-13.16%	-81.74%
1166	54 Neutral	€65.30M	―	-6.76%	―	-29.37%	75.02%
1539	52 Neutral	HK$1.22B	34.13	13.78%	―	69.91%	188.89%
1750	50 Neutral	HK$81.00M	50.00	0.99%	―	-15.58%	-76.92%
1399	46 Neutral	HK$203.83M	4.70	-1.11%	―	-14.43%	-161.66%

Perennial International Corporate Events

Perennial International Clarifies Interim Results Date Error

Perennial International Limited, a company listed on the Hong Kong Stock Exchange, issued a clarification regarding a clerical error in a previous announcement. The error involved the incorrect reporting of the financial period for interim results, which was mistakenly stated as ending on 2 August 2025 instead of the correct date of 30 June 2025. This correction ensures accurate financial reporting and maintains transparency with stakeholders.

Perennial International Schedules Board Meeting to Review Interim Results

Perennial International Limited, a company incorporated in Bermuda with limited liability and listed on the Hong Kong Stock Exchange, has announced an upcoming board meeting. The meeting, scheduled for August 19, 2025, will address the approval of the unaudited interim results for the six months ending August 2, 2025, and consider the payment of an interim dividend. This announcement indicates the company’s ongoing financial management and potential shareholder returns, reflecting its operational focus and strategic planning.

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.