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Perennial Energy Holdings Ltd (2798) Fair Value & Analysis

Basic Materials · HK · Market cap HK$1.2B

PE Perennial Energy Holdings Ltd 2798 · HK
PriceHK$0.8150
Fair ValueHK$1.22
Upside+49.7%
Quality26/100
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Weak Growth
Loss-making · -16.4% net margin
Low debt · negative free cash flow
Mixed vs. peers (6/12)
Narrow moat 1/100
Evidence: Medium Range HK$0.6200 – HK$1.84 Share as image

Fair value as of: Aug 13, 2026

From 8 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$0.6100 to HK$1.22 (+100.0%) since Aug 5, 2026. Share price +3.2% over the past month.

Below-average quality, screening 50% undervalued on our models.

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What matters now

  • The large discount to fair value meets weak quality (26/100). That raises the risk this is a value trap rather than a bargain.
  • The model range is unusually wide (HK$0.6200 to HK$1.84). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

HK$13.96 HK$0.5637 Fair Value HK$1.22 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.5637 – HK$13.96 · fair‑value band HK$0.6200 – HK$1.84 · the HK$0.8150 price screens below the HK$1.22 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Perennial Energy Holdings Ltd (2798) currently trades at HK$0.8150, while our model-based Fair Value estimate is HK$1.22, implying the stock looks roughly 49.7% undervalued today. The Quality Score stands at 26/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Perennial Energy Holdings Ltd generated revenue of HK$1.2B at a net margin of -16.4%. Revenue declined 26.7% year over year. It earns a return on equity of -6.5%. Net debt stands at HK$967M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.6200 (bear case) to HK$1.84 (bull case); at HK$0.8150, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 36% below its 52-week high and 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -60% fair-value upside, at 50%, 2798 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
ROIC Compounder HK$0.5900 HK$0.6700 HK$0.7300 72
Gordon GGM HK$0.0700 HK$0.1000 HK$0.1300 70
DDM Multi-Stage HK$0.0700 HK$0.0900 HK$0.1200 61
All 8 models by family
Earnings-Based
EPV HK$0.5900 HK$0.6700 HK$0.7300 59
Dividend Discount
Gordon GGM HK$0.0700 HK$0.1000 HK$0.1300 70
DDM Multi-Stage HK$0.0700 HK$0.0900 HK$0.1200 61
Multiples
EV/EBIT HK$0.8400 HK$1.10 HK$1.36 53
EV/EBITDA HK$1.52 HK$2.00 HK$2.49 54
EV/Revenue HK$0.7300 HK$1.03 HK$1.32 43
Asset-Based
NCAV (Graham) HK$0.9200 HK$1.24 HK$1.85 50
Economic Profit
ROIC Compounder HK$0.5900 HK$0.6700 HK$0.7300 72

Widest divergence: Asset-Based (HK$1.24) versus Dividend Discount (HK$0.0900). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) HK$1.2B
Revenue growth (YoY) -26.7%
Net margin -16.4%
Return on equity -6.5%
Free cash flow −HK$558M FY2025
Operating margin -29.3%
More key figures
EPS growth (YoY) -98.9%
Net debt HK$967M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 26/100

Of which business quality 29 · Market factors (momentum, volatility) 33

Profitability 6
Margins and returns on capital today
Quality Growth 2
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Perennial Energy Holdings Limited, an investment holding company, engages in the exploration and mining of coking coal in the People's Republic of China. It offers clean, middling, and sludge, as well as coalbed methane gas. The company also operates a coal refinery.

Full company description

Perennial Energy Holdings Limited, an investment holding company, engages in the exploration and mining of coking coal in the People's Republic of China. It offers clean, middling, and sludge, as well as coalbed methane gas. The company also operates a coal refinery. In addition, it operates underground coal mines, comprising Hongguo Coal Mine, Baogushan Coal Mine, and Xiejiahegou Coal Mine located in Panzhou City, Guizhou Province. The company was incorporated in 2017 and is headquartered in Liupanshui, China. Perennial Energy Holdings Limited operates as a subsidiary of Spring Snow Management, LTD.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Perennial Energy Holdings Ltd reported revenue of HK$1.2B in FY2025 versus HK$1.5B in FY2021, a compound −5.9%/yr. Reported net income was −HK$198M in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$1.2B
Latest YoY
−29.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−12.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.0%
Avg. growth/yr (10Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.9%
Revenue −5.9%/yr
FY21 HK$1.5B
FY22 HK$1.8B
FY23 HK$1.7B
FY24 HK$1.7B
FY25 HK$1.2B
Net income
FY21 HK$302M
FY22 HK$744M
FY23 HK$504M
FY24 HK$440M
FY25 −HK$198M
Character of growth · EPS growth decomposed (2015-2025) +33.2 % p.a.
Revenue per share +18.8 pp

of which total revenue +18.8 pp · buybacks/dilution +0.0 pp

EBIT margin +4.0 pp
Tax rate +1.8 pp
Residual (interest, one-offs) +8.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Perennial Energy Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2798

Peer Group

Coking Coal · 28 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 26 · Bottom 25%
Fair Value upside +50% · Top 25%
Return on assets -2% · Below median
Net margin (TTM) -16% · Below median
Operating margin (TTM) -29% · Bottom 25%
Revenue growth -27% · Bottom 25%
Dividend yield (TTM) 1.2% · Above median

Valuation Multiples vs Coking Coal median · lower = cheaper

P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 0.12× · Cheaper than median
EV/EBITDA 1.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 0 · sector 5
PAST 0 · sector 0
HEALTH 100 · sector 97
DIVIDEND 24 · sector 21

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Coal

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Coking Coal stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
PT Alamtri Minerals Indonesia Tbk, ADMR 1,615 IDR 1,251 IDR -23%
Warrior Met Coal, Inc HCC $96.72 $18.35 -81%
Shanxi Meijin Energy Co 000723 ¥3.62 ¥1.24 -66%
Alpha Metallurgical Resources, Inc AMR $159.52 $45.15 -72%
Shougang Fushan Resources Group 0639 HK$2.68 HK$2.34 -13%
Shanxi Coking Co 600740 ¥3.59 ¥1.75 -51%
Kailuan Energy Chemical Co 600997 ¥5.50 ¥1.72 -69%
Baotailong New Materials Co 601011 ¥2.66 ¥1.32 -50%
SunCoke Energy, Inc SXC $9.26 $3.67 -60%
Ramaco Resources, Inc METC $10.91 $1.80 -84%

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Frequently asked questions

Is Perennial Energy Holdings Ltd (2798) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$1.22 versus a price of HK$0.8150, about +50% (undervalued).
What is the fair value of 2798?
Our model-based fair value for Perennial Energy Holdings Ltd is HK$1.22 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.8150.
What is the quality score of 2798?
Perennial Energy Holdings Ltd has a Quality Score of 26/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Perennial Energy Holdings Ltd (2798)?
Perennial Energy Holdings Ltd reported trailing-twelve-month revenue of about HK$1.2B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2798?
The net profit margin of Perennial Energy Holdings Ltd is about -16.4%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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