Power Assets HLD (HGKGY) AI Stock Analysis

• Market Cap: $15.41B
• Dividend Yield: 4.89%
• Average Volume (3M): 26.00
• Price to Earnings (P/E): 19.6
• Beta (1Y): -0.05
• Revenue Growth: -24.34%
• EPS Growth: 2.12%
• Country: US
• Employees: 14
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.18
• Shares Outstanding: 2,131,105,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 26
• PEG Ratio: 10.67
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 17.08
• P/FCF Ratio: 122.97
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: 2.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $7.00 ▼(-3.85% Downside)

Power Assets HLD has a strong financial foundation with high profitability and a stable balance sheet, which are the most significant factors in its score. The technical analysis suggests a neutral market position, while the valuation indicates a fair price with a strong dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Financial Performance

The company's robust financial health, marked by profitability and a stable balance sheet, ensures resilience and capacity for future investments.

Stable Cash Flows

Consistent cash flow generation supports operational needs and strategic investments, enhancing long-term financial stability and shareholder value.

Efficient Cost Management

Effective cost management contributes to sustained profitability, allowing the company to maintain competitive pricing and invest in growth opportunities.

Negative Factors

Volatile Free Cash Flow Growth

Volatility in free cash flow growth can challenge financial planning and investment capacity, potentially impacting long-term strategic initiatives.

Revenue Decline

A significant decline in revenue growth could indicate challenges in market demand or competitive pressures, affecting future profitability and market position.

Small Workforce

A small workforce may limit operational capacity and scalability, potentially hindering the company's ability to manage large-scale projects or rapid expansion.

Power Assets HLD Business Overview & Revenue Model

Company Description

Power Assets Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; holds property and deposits; and provides consulting, investing, trust administration, and management services. It has a generation capacity of 1,064 MW renewable energy/energy from waste, 5,214 MW gas fired, and 3,815 MW coal/oil fired; and operates 114,200 km of gas/oil pipeline, as well as 402,500 km of power network serving 19,344,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.

How the Company Makes Money

Power Assets generates revenue primarily through the operation of its energy-related assets, which include power generation plants and distribution networks. The company earns income from the sale of electricity to consumers and businesses, often through long-term power purchase agreements that provide stable cash flows. Additionally, Power Assets benefits from investments in infrastructure projects and joint ventures, particularly in regions with increasing energy demand. Regulatory frameworks and partnerships with local governments or utility companies also play a significant role in its revenue model, ensuring compliance and facilitating expansion in new markets.

Power Assets HLD Financial Statement Overview

Summary

Power Assets HLD shows strong financial performance with high profitability, efficient operations, and a stable balance sheet. The company has a robust equity position and manages its debt effectively. However, some volatility in free cash flow growth could pose a risk.

Income Statement

Power Assets HLD has demonstrated strong profitability with a consistent increase in net income over the years, reflected in a high net profit margin. The gross profit margin has remained robust, indicating efficient cost management. Revenue growth is positive, although primarily driven by substantial increases in 2024 compared to previous years. EBIT and EBITDA margins are also healthy, signifying operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a high equity ratio, highlighting financial stability and a strong asset base relative to liabilities. The debt-to-equity ratio is low, indicating prudent leverage management. Return on equity remains high, showcasing effective use of shareholders' equity to generate profits.

Cash Flow

Power Assets HLD displays solid cash flow generation with consistent free cash flow. The operating cash flow to net income ratio is healthy, indicating that earnings are backed by actual cash flows. However, free cash flow growth has been volatile, posing potential risks in cash flow consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.64B	6.77B	1.29B	1.26B	1.28B	1.27B
Gross Profit	6.21B	6.35B	1.29B	1.26B	1.17B	1.46B
EBITDA	6.24B	6.52B	6.40B	5.94B	1.49B	1.31B
Net Income	6.16B	6.12B	6.00B	5.65B	6.14B	6.13B
Balance Sheet
Total Assets	97.10B	94.08B	95.70B	94.53B	94.30B	93.55B
Cash, Cash Equivalents and Short-Term Investments	1.56B	2.73B	4.20B	5.89B	4.61B	5.43B
Total Debt	3.77B	2.51B	3.10B	3.24B	3.44B	3.64B
Total Liabilities	8.18B	7.00B	6.95B	7.67B	7.54B	8.79B
Stockholders Equity	88.92B	87.08B	88.75B	86.86B	86.77B	84.77B
Cash Flow
Free Cash Flow	876.00M	941.00M	1.14B	771.00M	939.00M	960.00M
Operating Cash Flow	877.00M	941.00M	1.14B	772.00M	939.00M	962.00M
Investing Cash Flow	4.30B	5.69B	4.20B	4.01B	5.93B	5.13B
Financing Cash Flow	-5.06B	-6.35B	-6.19B	-6.14B	-6.02B	-5.98B

Power Assets HLD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGKGY, the sentiment is Positive. The current price of 7.28 is above the 20-day moving average (MA) of 6.98, above the 50-day MA of 6.74, and above the 200-day MA of 6.43, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 68.01 is Neutral, neither overbought nor oversold. The STOCH value of 97.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HGKGY.

Power Assets HLD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HGKGY	73 Outperform	$15.41B	19.64	7.05%	4.89%	-24.34%	2.12%
AEE	72 Outperform	$26.80B	19.15	11.47%	2.86%	22.71%	22.86%
NRG	68 Neutral	$28.54B	20.98	64.19%	1.11%	6.40%	62.12%
ES	66 Neutral	$24.62B	18.58	8.65%	4.54%	13.12%	―
PPL	66 Neutral	$25.48B	23.59	7.65%	3.13%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CNP	63 Neutral	$24.65B	23.99	9.61%	2.33%	6.43%	5.07%