Perpetual Limited

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Perpetual Limited (ASX: PPT) is a financial service company operating in the business of fund management, financial advisory, and trustee services. The company provides investment services to global retail and institutional clients from its offices in Australia, the United States, the United Kingdom, the Netherland, Singapore, and Hong Kong.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~20.55% of the total shareholding. The Vanguard Group, Inc. and State Street Global Advisors Australia Ltd. are holding a maximum stake in the company at ~5.00% and ~3.48%, respectively.

1.4 Key Metrics: In 1HFY22, BVS recorded an ROE of 6.5%, higher than the industry median of 5.2%. The net margin for the period stood at 15.5%, higher than the year-ago period figure of 10.2%.

 Section 2: Business Updates and Financial Highlights

2.1 Business Updates:

2.2 Results Highlights of 1HFY22 (Period Ended 31 December 2021): The company recorded a positive momentum across multiple divisions in 1HFY22 with net profit after tax at $59.3mn, up 113% YoY.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Fundamental Valuation

Valuation Methodology: P/B Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Disclaimer

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