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CLP Holdings Ltd (CLPHY)
OTHER OTC:CLPHY
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CLP Holdings
(OTC:CLPHY)
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Rating:67Neutral
Price Target:
$9.00
▲(8.17% Upside)
CLP Holdings' overall score reflects its solid financial performance and reasonable valuation, balanced by technical indicators suggesting potential bearish momentum. The earnings call highlighted both resilience and challenges, with a stable dividend policy providing some reassurance.
CLP Holdings (CLPHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.02B
Dividend Yield4.46%
Average Volume (3M)15.92K
Price to Earnings (P/E)14.4
Beta (1Y)0.10
Revenue Growth2.41%
EPS Growth51.83%
CountryUS
Employees7,069
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.26
Shares Outstanding2,526,450,700
10 Day Avg. Volume7,331
30 Day Avg. Volume15,924
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.56
Price to Sales (P/S)1.79
P/FCF Ratio23.77
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda1.29
Forecast
1Y Price Target
$9.00Price Target Upside8.17% Upside
Rating ConsensusHold
Number of Analyst Covering1
CLP Holdings Business Overview & Revenue Model
Company DescriptionCLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It serves 5.15 million retail customers in Hong Kong and Australia. The company is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. It has generating capacity of 20,018 equity megawatts; and 16,834 kilometers of transmission and high voltage distribution lines. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.
How the Company Makes MoneyCLP Holdings generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. Key revenue streams include its regulated electricity supply business in Hong Kong, which provides a stable income source due to long-term contracts and government frameworks. Additionally, the company earns income from its investments in power generation and infrastructure projects across the Asia-Pacific region, including in China, India, and Southeast Asia. Significant partnerships with local governments and private sectors enhance its project development capabilities, while its focus on renewable energy investments aligns with global trends toward sustainability, potentially boosting future revenue growth.
CLP Holdings Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Neutral
The earnings call indicated a mix of resilience and challenges. While the core Hong Kong business remains strong and strategic partnerships are advancing, the company faces earnings declines and market challenges, particularly in China and Australia. The strategic focus on energy transition and maintaining dividends are positive signs, but significant challenges persist.Q2-2025 Updates
Positive Updates
Strong Core Business in Hong Kong
Hong Kong delivered solid and dependable core earnings through continued investment and reliable operations. Operating reliability was reported at 99.999%.
Strategic Partnerships and Energy Transition
Successfully completed strategic partnerships, including a 50% joint venture for EnergyAustralia's Wooreen battery and a partnership with EDF for pumped hydro development, supporting energy transition efforts.
Investment in Renewable and Flexible Capacity
The company has nearly 1 gigawatt of committed firming capacity and additional renewable projects in various stages of development, particularly in the Mainland and Australia.
Stable Dividend Policy
Despite challenges, the Board has recommended maintaining a stable interim dividend of HKD 1.26 per share, reflecting a yield of 4.8%.
Negative Updates
Decreased Earnings
Group operating earnings before fair value movements decreased by 8% year-on-year to HKD 5.2 billion, with total earnings decreasing by 5% to HKD 5.6 billion.
Market Challenges in China and Australia
Performance was impacted by downward market tariff evolution in the Mainland and strong retail competition in Australia, leading to a reduction in customer numbers and lower operating earnings.
Lower Renewable Earnings in China
Renewable earnings in the Mainland decreased due to lower wind resources and higher curtailment in some regions, alongside lower tariffs.
Retail Competition Pressure in Australia
Intense retail competition and cost of living pressures in Australia led to margin compression and a reduction in customer accounts.
Company Guidance
The guidance provided in the call underscored several key metrics reflecting CLP's financial and operational performance for the first half of 2025. The company's operating earnings before fair value movements fell by 8% year-over-year to HKD 5.2 billion, and total earnings decreased by 5% to HKD 5.6 billion. Despite these challenges, the Board recommended a second interim dividend of HKD 0.63 per share, resulting in total interim dividends of HKD 1.26 per share, equating to a 4.8% yield. The group's EBITDAF declined by 5% to HKD 12.4 billion, while capital investments were over HKD 8 billion, lower than the previous year. Strong operational metrics were maintained, including 99.999% reliability in Hong Kong. The company's financial structure remained robust, with net debt at HKD 62 billion and liquidity close to HKD 30 billion. CLP's strategic focus includes a disciplined capital allocation framework and a commitment to future growth, with plans for substantial investments in renewable energy and infrastructure to support decarbonization initiatives.CLP Holdings Financial Statement Overview
Summary
CLP Holdings has demonstrated solid revenue growth and improved profitability with a net profit margin of 13.06%. The balanced capital structure and robust operating cash flow are positive, but increasing liabilities and fluctuating free cash flow pose risks.Income Statement
CLP Holdings has shown a solid revenue growth rate of 4.36% from 2023 to 2024, which is a positive indicator. The gross profit margin improved to 32.25% in 2024, indicating efficient cost management. EBIT and EBITDA margins have also improved to 16.38% and 29.42%, respectively, reflecting stronger operating performance. The net profit margin increased to 13.06%, showing enhanced profitability. However, the volatility in these metrics over the years, especially the sharp fluctuations in net income, suggests a need for more stability.75
Positive
Balance Sheet
The debt-to-equity ratio stands at 0.63 in 2024, indicating a moderate level of leverage. Return on equity improved to 11.41%, highlighting efficient use of equity to generate profits. The equity ratio of 44.52% suggests a balanced capital structure. Nonetheless, the overall liabilities have been increasing, which could pose a risk if not managed effectively.68
Positive
Cash Flow
Operating cash flow is robust at 23,140 million in 2024, and the free cash flow has shown positive growth after a dip in previous years. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has fluctuated significantly, signaling potential volatility in cash flows.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.73B | 90.96B | 87.17B | 100.66B | 83.96B | 79.59B |
| Gross Profit | 28.89B | 29.33B | 28.53B | 18.86B | 26.63B | 28.04B |
| EBITDA | 23.67B | 26.76B | 21.07B | 12.18B | 22.13B | 25.60B |
| Net Income | 11.64B | 11.88B | 6.79B | 1.06B | 8.63B | 11.59B |
Balance Sheet | ||||||
| Total Assets | 240.48B | 233.71B | 229.05B | 236.03B | 239.81B | 234.23B |
| Cash, Cash Equivalents and Short-Term Investments | 3.02B | 4.98B | 5.19B | 11.56B | 11.95B | 13.91B |
| Total Debt | 65.56B | 65.30B | 57.72B | 59.45B | 58.43B | 54.57B |
| Total Liabilities | 124.83B | 123.59B | 116.67B | 120.33B | 113.10B | 108.26B |
| Stockholders Equity | 109.66B | 104.06B | 106.22B | 109.39B | 116.92B | 116.09B |
Cash Flow | ||||||
| Free Cash Flow | 5.17B | 6.84B | 10.39B | -2.90B | 4.50B | 11.01B |
| Operating Cash Flow | 22.02B | 23.14B | 23.57B | 12.73B | 18.08B | 22.37B |
| Investing Cash Flow | -14.32B | -16.22B | -9.47B | -15.38B | -11.82B | -10.08B |
| Financing Cash Flow | -7.77B | -7.04B | -13.14B | -987.00M | -8.48B | -10.21B |
CLP Holdings Technical Analysis
Positive
8.32
Price Trends
8.40
Negative
8.38
Negative
8.23
Positive
Market Momentum
-0.02
Positive
48.14
Neutral
59.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLPHY, the sentiment is Positive. The current price of 8.32 is below the 20-day moving average (MA) of 8.36, below the 50-day MA of 8.40, and above the 200-day MA of 8.23, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 59.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLPHY.
CLP Holdings Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $26.52B | 20.28 | 10.33% | 3.75% | 6.44% | 49.07% | |
70 Neutral | $29.43B | 20.14 | 12.61% | 3.08% | 14.35% | 3.62% | |
69 Neutral | $21.65B | 21.35 | 12.48% | 2.93% | 8.25% | 4.37% | |
67 Neutral | $21.02B | 14.37 | 10.96% | 4.46% | 2.41% | 51.83% | |
67 Neutral | $27.47B | 27.59 | 6.96% | 2.89% | 6.62% | 17.35% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $26.92B | 31.22 | 5.63% | 4.09% | 14.44% | ― |
* Utilities Sector Average
CLPHY
CLP Holdings
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0.15
1.84%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.