Perennial Energy Holdings Ltd. (HK:2798)
:2798
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Perennial Energy Holdings Ltd.
(2798)
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Rating:60Neutral
Price Target:
HK$1.00
▼(-9.91% Downside)
Action:ReiteratedDate:01/16/26
Overall score reflects mixed financial performance led by strong margins and balance sheet strength, offset by negative operating/free cash flow and softening profitability. Technical indicators are also weak (price below 20/50-day averages and RSI ~38), while the low P/E (8.585) provides some valuation support.
Positive Factors
High Gross Margin
A 51.9% gross margin indicates durable cost advantages or pricing power in generation and related services. High gross margins provide a structural buffer against commodity and input volatility, enabling reinvestment into projects and supporting long-term profitability if volume trends stabilize.
Negative Factors
Negative Operating Cash Flow
Negative operating cash flow threatens the company's ability to fund capital expenditures, service obligations, and dividend policies without external financing. For a capital-intensive energy firm, persistently negative OCF raises liquidity and execution risks for ongoing and future renewable projects.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin
A 51.9% gross margin indicates durable cost advantages or pricing power in generation and related services. High gross margins provide a structural buffer against commodity and input volatility, enabling reinvestment into projects and supporting long-term profitability if volume trends stabilize.
Read all positive factors
Perennial Energy Holdings Ltd. (2798) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.50B
Dividend Yield4.24%
Average Volume (3M)1.15M
Price to Earnings (P/E)―
Beta (1Y)0.55
Revenue Growth-26.28%
EPS Growth-69.55%
CountryHK
Employees3,699
SectorBasic Materials
Sector Strength58
IndustryCoal
Share Statistics
EPS (TTM)-0.14
Shares Outstanding1,600,000,000
10 Day Avg. Volume1,331,500
30 Day Avg. Volume1,145,723
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)0.45
Price to Sales (P/S)0.83
P/FCF Ratio-1.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Perennial Energy Holdings Ltd. Business Overview & Revenue Model
Company Description
Perennial Energy Holdings Limited, an investment holding company, operates as a coal mining company in the People's Republic of China. The company principally explores for and mines various coals, such as clean, middling, sludge, and raw and cokin...
How the Company Makes Money
Perennial Energy Holdings Ltd. generates revenue primarily through the sale of electricity produced from its renewable energy projects. This includes power purchase agreements (PPAs) with utility companies and large industrial clients, which provi...
Perennial Energy Holdings Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43B | 1.71B | 1.72B | 1.78B | 1.54B | 1.40B |
| Gross Profit | 571.89M | 885.13M | 944.29M | 1.12B | 918.48M | 716.00M |
| EBITDA | 415.15M | 728.64M | 803.84M | 1.07B | 845.22M | 624.30M |
| Net Income | 185.59M | 440.23M | 504.19M | 743.96M | 301.77M | 345.48M |
Balance Sheet | ||||||
| Total Assets | 4.78B | 4.86B | 4.33B | 4.08B | 3.24B | 2.68B |
| Cash, Cash Equivalents and Short-Term Investments | 146.93M | 205.46M | 129.96M | 202.06M | 180.85M | 139.60M |
| Total Debt | 1.15B | 1.19B | 915.15M | 788.55M | 525.84M | 378.69M |
| Total Liabilities | 1.62B | 1.70B | 1.54B | 1.62B | 1.47B | 1.16B |
| Stockholders Equity | 3.16B | 3.16B | 2.79B | 2.46B | 1.77B | 1.52B |
Cash Flow | ||||||
| Free Cash Flow | -1.04B | -789.30M | -515.67M | -293.73M | 98.07M | 249.94M |
| Operating Cash Flow | -681.43M | -423.94M | 213.38M | 180.74M | 553.43M | 492.27M |
| Investing Cash Flow | -453.08M | -590.49M | -866.80M | -734.56M | -662.75M | -756.70M |
| Financing Cash Flow | 1.18B | 1.10B | 545.07M | 575.02M | 150.57M | 160.72M |
Perennial Energy Holdings Ltd. Technical Analysis
Negative
1.11
Price Trends
1.14
Negative
1.15
Negative
0.99
Negative
Market Momentum
-0.05
Positive
25.06
Positive
13.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2798, the sentiment is Negative. The current price of 1.11 is above the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.14, and above the 200-day MA of 0.99, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 25.06 is Positive, neither overbought nor oversold. The STOCH value of 13.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2798.
Perennial Energy Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$525.79M | 39.32 | 1.08% | ― | 39.98% | -73.77% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | HK$1.50B | -8.58 | 6.31% | 4.24% | -26.28% | -69.55% | |
56 Neutral | HK$2.11B | 4.52 | 3.21% | 20.68% | -23.72% | -86.69% | |
47 Neutral | HK$8.85B | -47.23 | 17.81% | 1.53% | -20.71% | 209.68% | |
45 Neutral | HK$551.48M | -0.91 | -16.39% | ― | -26.97% | -76.57% | |
44 Neutral | HK$276.32M | -0.27 | -48.57% | ― | 15.80% | 51.68% |
* Basic Materials Sector Average
HK:2798
Perennial Energy Holdings Ltd.
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Perennial Energy Holdings Ltd. Corporate Events
Perennial Energy Revises Coal Mine Consolidation Strategy
Oct 28, 2025
Perennial Energy Holdings Ltd. announced that it will not proceed with a previously proposed consolidation plan involving three coal mines due to various strategic and regulatory considerations. However, the company remains committed to coal resou...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.