Avior Capital Markets - Peregrine Holdings Ltd. (10HX) Peregrine | Setting up for a rebound

Report

Avior Capital Markets

David Talpert

Peregrine | Setting up for a rebound

Peregrine reported a 7% decline in FY '19 ongoing normalised HEPS as performance fees declined by 65%. The current earnings represent a low base with 92% annuity earnings. We believe PGR's earnings will rebound by 18% in FY '20f due to higher performance fees and a weak ZAR. In our view, despite a 10.5% historic dividend yield, the market is not putting sufficient value on the cash generative nature of PGR's capital light operations. We believe the share will rerate as PGR delivers improved earnings growth.

28/06/2019 13 EN

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.

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ZAE000078127 South Africa

Provider

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.

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Analysts

David Talpert

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Peregrine | Setting up for a rebound

Avior Financials | Coronation | Peregrine | Repo rate cut | Investment Banking statistics

Peregrine | A buyout or buyback

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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