Perennial Energy Holdings Ltd. (2798) AI Stock Analysis

• Market Cap: HK$1.25B
• Dividend Yield: 6.41%
• Average Volume (3M): 337.34K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.38
• Revenue Growth: -1.93%
• EPS Growth: -13.59%
• Country: HK
• Employees: 3,699
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Coal
• EPS (TTM): 0.12
• Shares Outstanding: 1,600,000,000
• 10 Day Avg. Volume: 385,510
• 30 Day Avg. Volume: 337,336
• PEG Ratio: <0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.41
• 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: 72 Outperform
• Price Target: HK$1.00 ▲(28.21%Upside)

The stock demonstrates a solid valuation with a low P/E ratio and high dividend yield, suggesting a potentially undervalued investment opportunity. While technical indicators show some short-term positive momentum, financial performance highlights profitability but raises concerns with cash flow challenges and slight revenue decline.

Perennial Energy Holdings Ltd. Business Overview & Revenue Model

Company Description

Perennial Energy Holdings Ltd. (2798) is a company engaged in the energy sector, focusing on the exploration, development, and production of energy resources. The company is primarily involved in activities related to renewable energy, including wind and solar power generation, as well as traditional energy sources. Perennial Energy Holdings Ltd. aims to contribute to sustainable energy solutions by blending innovative technologies with existing energy infrastructures.

How the Company Makes Money

Perennial Energy Holdings Ltd. generates revenue through multiple streams, primarily from the sale of electricity produced from its wind and solar power plants. The company enters into long-term power purchase agreements (PPAs) with utility companies and corporate clients, ensuring a steady income flow. Additionally, the company may receive government incentives and subsidies for its renewable energy projects, which further bolster its revenue. Perennial Energy Holdings Ltd. may also engage in strategic partnerships with other energy companies and technology providers to enhance its energy production capabilities and efficiency, contributing to its financial performance.

Perennial Energy Holdings Ltd. Financial Statement Overview

Summary

Perennial Energy Holdings Ltd. showcases strong profitability metrics with a solid EBIT margin of 33.8% and a net profit margin of 25.8%. However, a slight revenue decline and challenges in cash flow generation, specifically the absence of positive free cash flow, suggest areas for improvement in liquidity and sustainable growth.

Income Statement

Perennial Energy Holdings Ltd. reported a strong gross profit margin of 51.9%, and a solid net profit margin of 25.8% for 2024. However, the company experienced a slight revenue decline of 0.6% from the previous year. The EBIT margin stood at 33.8%, reflecting efficient operational management, and the EBITDA margin was 42.7%, indicating robust earnings before depreciation and amortization.

Balance Sheet

The company maintained a moderate debt-to-equity ratio of 0.38, signifying a balanced capital structure. Return on equity was healthy at 13.9%, though slightly reduced from previous levels. The equity ratio of 64.9% suggests strong asset financing through equity, providing stability against fluctuations.

Cash Flow

The absence of positive free cash flow and the inability to calculate free cash flow growth rate highlight challenges in cash generation. The operating cash flow to net income ratio was not calculable due to missing data, indicating potential issues in cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.72B	1.78B	1.54B	1.40B
Gross Profit	885.13M	944.29M	1.12B	918.48M	716.00M
EBITDA	728.64M	803.84M	1.07B	845.22M	624.30M
Net Income	440.23M	504.19M	743.96M	301.77M	345.48M
Balance Sheet
Total Assets	4.86B	4.33B	4.08B	3.24B	2.68B
Cash, Cash Equivalents and Short-Term Investments	205.46M	129.96M	202.06M	180.85M	139.60M
Total Debt	1.19B	915.15M	788.55M	525.84M	378.69M
Total Liabilities	1.70B	1.54B	1.62B	1.47B	1.16B
Stockholders Equity	3.16B	2.79B	2.46B	1.77B	1.52B
Cash Flow
Free Cash Flow	-789.30M	-515.67M	-293.73M	98.07M	249.94M
Operating Cash Flow	-423.94M	213.38M	180.74M	553.43M	492.27M
Investing Cash Flow	-590.49M	-866.80M	-734.56M	-662.75M	-756.70M
Financing Cash Flow	1.10B	545.07M	575.02M	150.57M	160.72M

Perennial Energy Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2798, the sentiment is Positive. The current price of 0.78 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.75, and below the 200-day MA of 0.87, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2798.

Perennial Energy Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2798	72 Outperform	HK$1.25B	2.61	14.62%	6.41%	-1.93%	-13.59%
1733	72 Outperform	HK$2.54B	2.75	10.58%	15.37%	-3.50%	-56.52%
1303	67 Neutral	HK$525.79M	2.83	15.55%	―	38.87%	-20.68%
Sector *	62 Neutral	$10.29B	9.96	-0.15%	2.86%	2.14%	-32.15%
0866	54 Neutral	HK$4.52B	8.25	87.02%	2.25%	-26.23%	147.99%
6885	51 Neutral	HK$524.71M	―	-10.52%	21.25%	-5.74%	-1526.68%
1393	48 Neutral	HK$294.74M	―	-44.69%	―	-13.27%	14.98%

Perennial Energy Holdings Ltd. Corporate Events

Perennial Energy Holdings Enhances Governance with Audit Committee

Perennial Energy Holdings Limited, a company incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, has established an Audit Committee to comply with the listing rules. The committee, formed in 2018, is composed of non-executive directors, with a majority being independent, to oversee the company’s financial reporting and auditing processes. The announcement outlines the committee’s structure, membership criteria, and meeting protocols, which aim to enhance transparency and governance within the company.

Perennial Energy Holdings Limited Forms Nomination Committee to Strengthen Governance

Perennial Energy Holdings Limited has established a Nomination Committee to ensure a formal and transparent process for appointing new directors and planning for board succession. This move aligns with the company’s commitment to adhere to the listing rules of the Hong Kong Stock Exchange, aiming to enhance governance and operational efficiency.

Perennial Energy Holdings Establishes Remuneration Committee for Enhanced Governance

Perennial Energy Holdings Limited has established a Remuneration Committee to enhance transparency and objectivity in setting remuneration for its directors and senior management. The committee, which complies with the Hong Kong Stock Exchange’s listing rules, consists of at least three members, primarily independent non-executive directors, and is tasked with reviewing and recommending remuneration policies, thereby potentially impacting the company’s governance and stakeholder trust.

Perennial Energy Holdings Secures Shareholder Approval for Key Resolutions at AGM

Perennial Energy Holdings Limited held its Annual General Meeting on June 5, 2025, where all proposed resolutions were passed. These included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting mandates for share issuance and repurchase. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.

Perennial Energy Holdings Announces 2025 AGM and Key Resolutions

Perennial Energy Holdings Ltd. has announced its upcoming annual general meeting scheduled for June 5, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the 2024 financial statements, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as the independent auditor. Additionally, the company seeks approval to authorize directors to issue additional shares, which could impact the company’s capital structure and shareholder value.