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CLP Holdings Ltd (CLPHY)
OTHER OTC:CLPHY
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CLP Holdings
(OTC:CLPHY)
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Rating:70Outperform
Price Target:
$10.50
▲(15.38% Upside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by solid financial resilience (profitability recovery, manageable leverage, positive operating cash flow) and supportive income/valuation (mid-teens P/E and ~4% yield). The rating is tempered by uneven revenue/margins and mixed earnings-call takeaways, including declining reported earnings and operational headwinds in China and EnergyAustralia, while technicals remain mostly neutral.
Positive Factors
Regulated Hong Kong operations & reliability
CLP's Hong Kong regulated business delivers predictable cashflow and resilience: higher core earnings, completed smart meter rollout, and strong supply reliability reduce operational risk, support regulatory relations and allowed returns, and underpin stable long‑term earnings from the core franchise.
Strong cash generation & liquidity
Material, consistently positive operating cashflow and ample liquidity support dividends, self‑funded investment and credit metrics. Robust FCF and ~HKD29bn facilities provide durable funding for decarbonization capex while protecting investment‑grade ratings and financial flexibility.
Low‑carbon capacity growth & contracted revenue wins
Winning long‑tenor mechanism tariffs and commissioning renewables/battery projects improve long‑term revenue visibility and shift the asset mix toward low‑carbon generation. These contracted streams and project completions lower merchant exposure and support strategic transition goals.
Negative Factors
Mainland curtailment & tariff pressure
Sustained curtailment and weaker market/tariff dynamics in the Mainland reduce utilization and cash returns for renewable and nuclear assets. Structural grid constraints and tariff uncertainty impair revenue predictability and can compress long‑term project economics in that geography.
EnergyAustralia retail weakness & transformation drag
Competitive, low‑margin retail in Australia necessitates a multi‑year transformation with significant upfront costs and execution risk. Persistent margin pressure, customer churn and transformation spend can materially restrain returns and cashflow from this sizeable regional business.
Earnings volatility & asset impairments
Impairments and restructuring provisions highlight asset‑specific downside and transition risk, signaling that some legacy assets face impaired economics. Combined with year‑to‑year swings in revenue and margins, this raises uncertainty about sustainable earnings power across the portfolio.
CLP Holdings (CLPHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.74B
Dividend Yield4.16%
Average Volume (3M)2.11K
Price to Earnings (P/E)16.6
Beta (1Y)0.05
Revenue Growth2.41%
EPS Growth51.83%
CountryUS
Employees7,069
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.25
Shares Outstanding2,526,450,700
10 Day Avg. Volume0
30 Day Avg. Volume2,108
Financial Highlights & Ratios
PEG Ratio-1.46
Price to Book (P/B)1.65
Price to Sales (P/S)2.02
P/FCF Ratio23.24
Enterprise Value/Market Cap10.44
Enterprise Value/Revenue2.76
Enterprise Value/Gross Profit8.58
Enterprise Value/Ebitda10.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.58
Revenue Forecast (FY)$11.59B
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 primarily makes money by producing and delivering electricity to customers and by earning returns from regulated utility operations and power generation investments.
1) Regulated electricity supply and network revenue (core): In its regulated utility business (notably in Hong Kong), CLP earns revenue from selling electricity to residential, commercial, and industrial customers. A significant portion of earnings is typically driven by regulated frameworks that govern permitted returns, tariffs, and cost recovery for operating and investing in generation capacity and electricity network infrastructure (transmission/distribution). Under such arrangements, the company’s ability to earn is closely linked to the regulated asset base, allowed return mechanisms, and pass-through of certain fuel and operating costs (subject to the applicable regulatory scheme).
2) Electricity generation and sale (non-regulated/contracted/merchant depending on market): In markets outside its primary regulated utility, CLP earns revenue from generating electricity and selling it into wholesale power markets or under bilateral arrangements such as long-term power purchase agreements (PPAs) where available. Revenue and margins in these businesses depend on plant availability, achieved power prices (contracted or market), fuel costs (for thermal assets), and carbon and environmental compliance costs where applicable.
3) Renewable energy and development/investment returns: CLP also earns from renewable generation assets (e.g., wind/solar and other renewables where owned) through electricity sales and, where applicable, contracted pricing mechanisms or incentives tied to renewable generation. It may also generate returns through development activities, ownership stakes in joint ventures, and dividend/earnings contributions from associates and subsidiaries.
4) Other contributing factors: Key factors influencing earnings include fuel price movements and hedging (where applicable), demand growth and load profiles, regulatory decisions (tariff settings, allowed returns, and cost recovery rules), plant outages and reliability, and capital investment programs that expand or maintain regulated and generation asset bases. Specific significant partnerships are not available (null).
CLP Holdings Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: core Hong Kong operations and group cash generation remain strong (stable EBITDAF, higher Hong Kong earnings, completed smart meter rollout, dividend increase, and solid liquidity), and CLP made tangible progress on low‑carbon projects and partnerships. Offsetting these positives were meaningful headwinds in the Chinese Mainland (lower renewables output and curtailment, nuclear tariff pressures, impairments), a weak EnergyAustralia retail performance and one‑off transformation and tax hits, and a reported ~11% decline in total/adjusted earnings. Execution of disciplined capital allocation, successful mechanism tariff wins in China, and partnership financing approaches were emphasized as mitigants.Q4-2025 Updates
Positive Updates
Stable Group EBITDAF and Operating Resilience
EBITDAF was stable year‑on‑year at HKD 25.7 billion, and operating earnings before fair value movements declined only marginally (~2%) to ~HKD 10.7 billion, reflecting resilience in core operations despite market headwinds.
Strong Hong Kong Performance
Core Hong Kong earnings increased 7% to just over HKD 9.5 billion. Completed smart meter rollout, maintained high supply reliability through record Black Rainstorms and 14 typhoons, and capital expenditure focused on growth and decarbonization (HKD 10.6 billion invested in Hong Kong SoC activities).
Dividend Increase and Strong Free Cash Flow
Board recommended total dividends of HKD 3.20 per share for FY2025, up 1.6% versus 2024. Free cash flow improved by HKD 1.6 billion to HKD 22.6 billion, supporting shareholder returns and liquidity.
Progress on Low‑carbon Projects and Capacity Additions
Non‑carbon capacity rose ~3% driven by renewables and battery investments. Major project milestones: largest Mainland wind farm brought into commercial operation, first independent battery energy storage system in Mainland, 2nd centralized control centre in Shandong, Apraava commissioned 251 MW Sidhpur wind farm, and multiple solar/wind projects commissioned in Mainland (4 projects, ~400 MW) with 5 projects (~900 MW) under construction.
Financial and Funding Strength
Capital structure and liquidity remained strong with ~HKD 29 billion in available facilities, over HKD 17 billion of debt successfully raised for Hong Kong SoC, and credit ratings reaffirmed by S&P and Moody's (Moody's upgraded EnergyAustralia outlook to positive).
Successful Partnerships & Project Finance Execution
Formed a 50% joint venture (Wooreen battery) with Banpu delivering a one‑off positive contribution (HKD 390 million) and demonstrating a partnership model (sell‑down) to optimize capital use and enhance project returns.
Operational Improvements & Transformation Progress
Completed Phase 1 ERP rollout in Hong Kong, advanced enterprise transformation at EnergyAustralia (outsourcing partnership with Tata), and achieved safety/reliability improvements including lower injury rates and reduced unplanned customer minute loss in Hong Kong.
China Contracting Success Under Document 136
Secured full eligible mechanism tariff volumes for 4 Mainland projects (around 1 GW) with attractive tariffs and 10–12 year tenors, improving long‑term revenue visibility for those assets.
Negative Updates
Reported Earnings Decline
Reported total earnings/adjusted total earnings declined ~11% year‑on‑year (management highlighted an ~11% fall in total/adjusted earnings), reflecting weaker market conditions and one‑off comparability items.
Chinese Mainland Earnings Weakness and Renewables Curtailment
Mainland earnings decreased ~12% to HKD 1.6 billion. Renewables were hit by historically low wind resources and higher curtailment (~9% across the portfolio, especially in Jilin and Gansu). Yangjiang Nuclear contribution reduced due to a higher share sold at lower market tariffs.
Asset Impairments and Coal Plant Provisions
Took a HKD 680 million impairment on two minority‑owned coal plants in Mainland due to lower demand and rising renewables competition, and recorded a HKD 345 million redundancy provision related to Yallourn closure.
EnergyAustralia Financial and Retail Challenges
EnergyAustralia operating earnings weakened to HKD 85 million, impacted by tough retail conditions (intense competition, margin compression, customer losses and higher bad debts), a combined ~HKD 300 million impact from one‑off tax expense and upfront transformation costs, and upfront enterprise costs tied to the multiyear transformation.
India Headline Result Decline
Apraava Energy headline results down ~29%, driven primarily by a one‑off impairment (HKD 82 million on KMTL transmission) and compared with prior year one‑offs (HKD 55 million gains in 2024).
Lower Generation and Electricity Sendouts
Group electricity sendouts declined ~3%, reflecting lower coal output, and Yallourn lower output weighed on generation results ahead of its planned retirement.
Short‑term Margin Pressure and Market Tariff Risk
Fair value movements on EnergyAustralia forward energy contracts were less favorable versus prior year; Mainland market tariff pressure (particularly for Yangjiang) and softer wholesale forward prices in Australia were cited as near‑term headwinds.
Transformation and Transition Costs
Upfront costs for transformation programs (EnergyAustralia customer platform, outsourcing to Tata, and platform contracting) and tax/legal changes (limiting interest deductibility) meaningfully reduced near‑term operating earnings.
Company Guidance
Management guided a disciplined, value‑over‑volume approach focused on stable dividends, self‑funded growth and protecting the investment‑grade balance sheet: group EBITDAF was stable at HKD 25.7 billion and operating earnings before fair‑value movements were ~HKD 10.6–10.7 billion (down ~2%) with adjusted total earnings down ~11% (~HKD 10.5–11.5 billion), free cash flow up HKD 1.6 billion to HKD 22.6 billion and available liquidity of ~HKD 29 billion; the Board recommended total dividends of HKD 3.20/share (up 1.6%). Capital discipline was reiterated — capital investment declined ~13% to HKD 16.4 billion (cash capex ~HKD 14.6 billion, of which ~HKD 11.2 billion was Hong Kong SoC and ~HKD 3.4 billion for China renewables/Wooreen) and annual SoC capex targeted around HKD 10–11 billion. Growth targets and timetables were reaffirmed and tightened: China renewables target trimmed from 6 GW to 5 GW by 2030 (0.5 GW added in 2025, ~1 GW secured under mechanism tariffs with 10–12 year tenors and plans for onshore Panda bonds/clean‑energy fund), India’s Apraava is targeting ~1 GW p.a. to reach ~9 GW by 2030 (Jhajjar sale proceeds to be distributed in 2026–27), and EnergyAustralia is prioritizing >1 GW (and up to ~3 GW by 2030) of new flexible capacity (Wooreen on track for 2027) while executing enterprise transformation through 2028 and using partnerships/project finance to meet return hurdles.CLP Holdings Financial Statement Overview
Summary
Overall fundamentals are solid for a utility: profitability recovered after 2022 and leverage looks manageable with relatively stable equity. Offsets include volatile revenue trends, a 2025 gross margin step-down, and choppy free cash flow history with some unclear recent cash-conversion fields.Income Statement
Revenue has been volatile, with growth swinging from strong expansion (2022) to declines (2023 and 2025). Profitability recovered meaningfully from a very weak 2022 (near-breakeven net margin) to healthier net margins in 2023–2025 (roughly high-single-digit to low-teens), though 2025 shows a notable drop in gross margin versus 2023–2024. Overall, earnings power looks solid but not consistently steady year-to-year.72
Positive
Balance Sheet
Leverage appears manageable for the sector, with debt-to-equity generally around the ~0.5–0.6 range, and equity remaining large and relatively stable. Returns on equity improved sharply after a weak 2022, reaching roughly high-single-digit to low-teens in 2024–2025, but still fluctuated meaningfully across the period. The balance sheet looks sturdy, though the upward drift in debt and uneven returns are key watch items.74
Positive
Cash Flow
Operating cash flow is consistently positive and generally strong, supporting the business through the cycle. Free cash flow improved substantially after turning negative in 2022 and was solidly positive again in 2023–2025, including strong growth in 2025 versus 2024. However, free cash flow has been choppy across years, and the 2025 cash flow coverage/to-net-income metrics are shown as 0.0 in the provided data, limiting confidence in cash conversion assessment for the most recent year.67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.73B | 87.87B | 90.96B | 87.17B | 100.66B | 83.96B |
| Gross Profit | 28.89B | 13.31B | 29.33B | 28.53B | 18.86B | 26.63B |
| EBITDA | 24.72B | 23.01B | 26.76B | 21.07B | 12.18B | 22.13B |
| Net Income | 11.64B | 10.65B | 11.88B | 6.79B | 1.06B | 8.63B |
Balance Sheet | ||||||
| Total Assets | 240.48B | 238.62B | 233.71B | 229.05B | 236.03B | 239.81B |
| Cash, Cash Equivalents and Short-Term Investments | 3.02B | 3.93B | 4.98B | 5.19B | 11.56B | 11.95B |
| Total Debt | 65.56B | 65.86B | 65.30B | 57.72B | 59.45B | 58.43B |
| Total Liabilities | 124.83B | 125.08B | 123.59B | 116.67B | 120.33B | 113.10B |
| Stockholders Equity | 109.66B | 107.60B | 104.06B | 106.22B | 109.39B | 116.92B |
Cash Flow | ||||||
| Free Cash Flow | 5.17B | 7.62B | 6.84B | 10.39B | -2.90B | 4.50B |
| Operating Cash Flow | 22.02B | 24.38B | 23.14B | 23.57B | 12.73B | 18.08B |
| Investing Cash Flow | -14.32B | -14.33B | -16.22B | -9.47B | -15.38B | -11.82B |
| Financing Cash Flow | -7.77B | -11.22B | -7.04B | -13.14B | -987.00M | -8.48B |
CLP Holdings Technical Analysis
Positive
9.10
Price Trends
9.37
Positive
8.98
Positive
8.58
Positive
Market Momentum
<0.01
Positive
50.63
Neutral
40.74
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 9.1 is below the 20-day moving average (MA) of 9.39, below the 50-day MA of 9.37, and above the 200-day MA of 8.58, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $23.74B | 16.64 | 9.82% | 4.16% | 2.41% | 51.83% | |
67 Neutral | $27.46B | 21.95 | 8.16% | 3.13% | 8.42% | 32.48% | |
66 Neutral | $22.80B | 19.63 | 12.33% | 3.10% | 10.96% | -0.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $28.05B | 25.33 | 8.04% | 3.94% | 7.64% | 48.61% | |
63 Neutral | $25.03B | 14.75 | 10.71% | 4.54% | 13.12% | ― | |
62 Neutral | $29.42B | 18.26 | 12.16% | 3.45% | 19.42% | -9.68% |
* Utilities Sector Average
CLPHY
CLP Holdings
9.40
1.53
19.41%
CMS
CMS Energy
74.42
3.43
4.83%
DTE
DTE Energy
141.57
9.83
7.46%
FE
FirstEnergy
48.54
11.07
29.53%
ES
Eversource Energy
66.67
8.51
14.62%
PPL
PPL
36.55
2.84
8.43%
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.