Bought 45,000 shares of Perennial between 3rd - 9th Apr at average price of $0.855.
Reasons for buying Perennial:
1) They are into Healthcare & Real Estate sector.
This is inline with my 2 sectors which I will heavily focus and invest in. So by buying Perennial, it is one stone kill 2 birds for me.
2) Their upcoming pipeline of integrated development in China prime location
- Xi'an North High Speed Railway ("HSR") Integrated Development
- Chengdu East High Speed Railway High Speed Railway ("HSR") Integrated Development
- Zhuhai Hengqin Integrated Development
- Beijing Tongzhou Integrated Development
We will see them start to bear fruits for the next few years with recurring income from these integrated development.
Do you see any similarity between Perennial with GuocoLand Limited & CapitaLand?
All their stock price and dividend increases due to recurring income from:
- GuocoLand is their Tanjong Pagar Centre aka Guoco Tower
- CapitaLand is their Raffles City Shenzhen, Raffles City Changning, Raffles City Hangzhou and CapitaMall Westgate in Wuhan opened in 2017
3) PB ratio of around 0.51 only
This hidden gem is unloved mainly due to not much reporting from the analyst coverage. With the above upcoming pipeline nearer to completion date, their valuation will go up higher and it will make my current buy price of $0.855 even more attractive.
4) Increased the dividend to 1 cents for FY2017 from 0.4cents for FY2016
This is a growth stock rather than a dividend stock for now. But once those pipeline are completed and have recurring income, I believe Management will increase the dividend payout along with it. This stock is still in CD status till 4 May 2018, payout on 18 May 2018.
5) Their Sponsors
4 of them hold 81.41% of the PERENNIAL total shares.
Thus, their interest is definitely alight with shareholder.
Our % of shares is nothing compare to their holding :)
6) The number of share buyback