Education
About Us
Working with TipRanks
Follow Us
CLP Holdings Ltd (CLPHY)
OTHER OTC:CLPHY
Top Page
CLP Holdings
(OTC:CLPHY)
Select Model
Select Model
Rating:71Outperform
Price Target:
$9.50
▲(4.40% Upside)
Action:ReiteratedDate:12/07/25
CLP Holdings demonstrates strong financial performance with solid revenue growth and profitability, supported by positive technical indicators. The valuation is fair, with a decent dividend yield. The absence of earnings call data and corporate events does not impact the score.
Positive Factors
Strong Core Business in Hong Kong
The reliable operations and investments in Hong Kong ensure a stable revenue stream, demonstrating the company's strong market position and operational efficiency in a key region.
Strategic Partnerships and Energy Transition
Strategic partnerships enhance CLP's capabilities in energy transition, aligning with global trends and positioning the company for long-term growth in renewable energy.
Investment in Renewable and Flexible Capacity
Investments in renewable and flexible capacity support CLP's commitment to sustainability, ensuring future revenue growth and compliance with decarbonization initiatives.
Negative Factors
Decreased Earnings
The decline in earnings indicates potential challenges in maintaining profitability, which could impact financial stability and investor confidence if not addressed.
Market Challenges in China and Australia
Challenges in key markets like China and Australia could hinder growth and profitability, requiring strategic adjustments to navigate competitive and regulatory landscapes.
Lower Renewable Earnings in China
Decreased renewable earnings in China highlight the volatility and risks associated with renewable energy investments, potentially affecting long-term revenue stability.
CLP Holdings (CLPHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.96B
Dividend Yield4.16%
Average Volume (3M)2.11K
Price to Earnings (P/E)17.8
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 Ratio0.18
Price to Book (P/B)1.56
Price to Sales (P/S)1.79
P/FCF Ratio23.77
Enterprise Value/Market Cap10.41
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit8.63
Enterprise Value/Ebitda10.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.58
Revenue Forecast (FY)$11.64B
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 through several key streams. The primary source is the sale of electricity to residential, commercial, and industrial customers in Hong Kong and other markets where it operates. The company also earns revenue from its investments in renewable energy projects, which not only provide power but may also benefit from government incentives and subsidies aimed at promoting sustainable energy. Additionally, CLP Holdings has strategic partnerships with local and international entities, enabling joint ventures in energy projects and facilitating access to broader markets. The company’s diversified energy portfolio, which includes both traditional and renewable sources, allows it to adapt to changing regulatory environments and consumer demands, further stabilizing its revenue base.
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
CLP Holdings has shown solid revenue growth and improved profitability with a gross profit margin of 32.25% and a net profit margin of 13.06%. The balance sheet reflects a moderate debt-to-equity ratio of 0.63 and a return on equity of 11.41%. Cash flow is robust, but there is volatility in free cash flow, which poses a risk.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 | 24.72B | 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
Neutral
9.10
Price Trends
9.36
Positive
8.97
Positive
8.64
Positive
Market Momentum
0.07
Positive
45.68
Neutral
7.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLPHY, the sentiment is Neutral. The current price of 9.1 is below the 20-day moving average (MA) of 9.68, below the 50-day MA of 9.36, and above the 200-day MA of 8.64, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 7.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $23.96B | 17.85 | 10.96% | 4.16% | 2.41% | 51.83% | |
67 Neutral | $29.29B | 24.58 | 8.15% | 3.13% | 8.42% | 32.48% | |
66 Neutral | $23.92B | 22.15 | 12.33% | 3.10% | 10.96% | -0.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $29.57B | 28.99 | 8.17% | 3.94% | 7.64% | 48.61% | |
63 Neutral | $28.62B | 16.70 | 10.84% | 4.54% | 13.12% | ― | |
62 Neutral | $30.80B | 21.03 | 12.16% | 3.45% | 19.42% | -9.68% |
* Utilities Sector Average
CLPHY
CLP Holdings
9.49
1.57
19.77%
CMS
CMS Energy
78.07
6.18
8.60%
DTE
DTE Energy
148.24
17.42
13.31%
FE
FirstEnergy
51.16
13.10
34.42%
ES
Eversource Energy
76.21
16.08
26.74%
PPL
PPL
38.98
4.43
12.82%
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.