Report
David Talpert ...
  • Harry Botha

Peregrine | A buyout or buyback

Peregrine Holdings (PGR) reported improved H1 '20 results as normalised HEPS increased by 15%. Citadel's 18% earnings growth offset disappointing results from Peregrine Capital and Stenham. We believe Citadel is a high-quality asset, which is not receiving a fair rating in the group structure as PGR trades at a discount to our SOTP fair value. We estimate a current fair value of R21.33/share. In our view, the market is applying a discount to PGR's NAV similar to other SA holding companies. However, a buyout (currently under cautionary) or share buybacks could unlock the discount.
Underlying
Peregrine Holdings Ltd.

Peregrine Holdings Limited is a financial services company. The Company provides with investment management solutions in wealth and alternative assets. Its segments include Wealth Management, Asset Management, Broking & Structuring, Stenham and Advisory. The Company operates wealth and asset management through its subsidiaries, Citadel Holdings Limited and Peregrine Capital Proprietary Limited. The Broking & Structuring segment includes brokerage, scrip lending income, interest and dividend income earned on trading, equities and futures transactions and fees charged for consulting and executing derivative strategies on behalf of clients. The Company operates Stenham segment through its subsidiary, Stenham Limited and its subsidiaries. Its advisory segment represents the returns on corporate finance, advisory and investment business generated from services, which range from financial, commercial and legal advisory and transaction execution services.

Provider
Avior Capital Markets
Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

Analysts
David Talpert

Harry Botha

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