CLP Holdings Limited (HK:0002)
:0002
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CLP Holdings
(0002)
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Rating:65Neutral
Price Target:
HK$78.00
â–²(13.87% Upside)
Action:Downgraded
Date:06/18/26
The score is driven primarily by solid underlying financial performance typical of a regulated utility (recovered profitability and manageable leverage), tempered by margin and free-cash-flow volatility. Technical indicators are a notable headwind with weak trend/momentum, while valuation is supported by a strong dividend yield but only mid-range on P/E.
Positive Factors
Regulated Hong Kong franchise
CLP’s core Hong Kong business operates under the Scheme of Control, delivering tariff-linked recovery of costs and a permitted return on the regulated asset base. That regulatory franchise offers durable revenue and earnings visibility, supporting multi-quarter cash flow predictability and lower earnings volatility compared with merchant-only generators.
Negative Factors
Free-cash-flow volatility
CLP’s free cash flow has swung materially with large capital spending cycles, including a negative year in 2022. Persistent FCF volatility limits discretionary financial flexibility, complicates dividend coverage and buyback capacity, and can strain funding plans during sustained investment phases.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated Hong Kong franchise
CLP’s core Hong Kong business operates under the Scheme of Control, delivering tariff-linked recovery of costs and a permitted return on the regulated asset base. That regulatory franchise offers durable revenue and earnings visibility, supporting multi-quarter cash flow predictability and lower earnings volatility compared with merchant-only generators.
Read all positive factors
CLP Holdings (0002) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$184.81B
Dividend Yield4.54%
Average Volume (3M)4.16M
Price to Earnings (P/E)17.3
Beta (1Y)0.06
Revenue Growth-3.24%
EPS Growth-10.85%
CountryHK
Employees7,069
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)4.15
Shares Outstanding2,526,450,700
10 Day Avg. Volume4,295,647
30 Day Avg. Volume4,164,030
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.63
Price to Sales (P/S)2.00
P/FCF Ratio23.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.85
Revenue Forecast (FY)HK$88.17B
CLP Holdings Business Overview & Revenue Model
Company Description
CLP Holdings Limited operates as an investment holding company primarily focused on the generation, transmission, and supply of electricity. Its widespread operations span Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. Th...
How the Company Makes Money
CLP Holdings makes money mainly by selling electricity and related utility services, with earnings coming from a mix of regulated utility returns and competitive/contracted power generation revenues.
1) Regulated electricity supply (core profit d...
CLP Holdings Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong financial resilience and operational performance in Hong Kong, stable EBITDAF, robust free cash flow, and continued progress on low‑carbon projects supported dividend growth and credit ratings. These positives were offset by meaningful challenges — weaker results in the Chinese Mainland (low wind resources and curtailment), one‑off impairments and provisions on coal assets, and a weak EnergyAustralia retail performance compounded by transformation and tax one‑offs. Management emphasized disciplined, value‑led growth, capital discipline and partnerships to mitigate funding needs and execution risks.Positive Updates
Stable group EBITDAF and operating earnings
EBITDAF was stable year‑on‑year at HKD 25.7 billion; operating earnings before fair value movements decreased marginally by ~2% to about HKD 10.6–10.7 billion, showing underlying resilience.
Negative Updates
Reported earnings and comparability items decreased
Total reported earnings were down ~11% year‑on‑year (reported numbers cited between HKD 11.5 billion and adjusted ~HKD 10.5 billion depending on adjustments), driven by fair value movements and several one‑off items that reduced comparability.
Read all updates
Q4-2025 Updates
Positive
Negative
Stable group EBITDAF and operating earnings
EBITDAF was stable year‑on‑year at HKD 25.7 billion; operating earnings before fair value movements decreased marginally by ~2% to about HKD 10.6–10.7 billion, showing underlying resilience.
Read all positive updates
Company Guidance
The call set out clear near‑ and medium‑term guidance anchored by disciplined, value‑driven growth: Hong Kong will execute a HKD 52.9 billion five‑year development plan while SoC capital expenditure is expected at roughly HKD 10–11 billion per year; China renewable ambition was trimmed from 6 GW to 5 GW by 2030 (adding ~0.5 GW in 2025) with ~1 GW of tariff‑secured projects (10–12 year tenors) and a plan to tap onshore financing/clean‑energy fund from 2026 (first RMB 1 billion drawdown expected), using project finance at ~70–80% LTV and conservatively assuming ~50% average debt for returns; India’s Apraava targets ~9 GW of non‑carbon capacity by 2030 (about 1 GW p.a.), has ~2 GW underway, 18 projects won and >2.5 million smart meters installed (another 7.2 million to roll out), and will complete the Jhajjar sale in Q1 to free capital; EnergyAustralia is prioritizing >1 GW of new batteries/pumped hydro in the next three years (and up to ~3 GW flexible capacity by 2030), with Wooreen on track for 2027, a customer platform and enterprise transformation targeted by 2028, and Yallourn retirement planned for mid‑2028; financial priorities include remaining investment‑grade ratings, a steady‑and‑growing dividend policy (FY2025 total dividend HKD 3.20/share, +1.6%), and strict IRR hurdles (double‑digit in China, high single‑digit in Australia).CLP Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 88.02B | 90.96B | 87.17B | 100.66B | 83.96B |
| Gross Profit | 13.33B | 29.33B | 28.53B | 18.86B | 26.63B |
| EBITDA | 23.05B | 24.23B | 21.07B | 14.19B | 21.52B |
| Net Income | 10.67B | 11.88B | 6.79B | 1.06B | 8.63B |
Balance Sheet | |||||
| Total Assets | 238.64B | 233.71B | 229.05B | 236.03B | 239.81B |
| Cash, Cash Equivalents and Short-Term Investments | 3.93B | 4.98B | 5.19B | 4.29B | 8.26B |
| Total Debt | 66.73B | 66.14B | 59.33B | 61.03B | 63.27B |
| Total Liabilities | 125.09B | 123.59B | 116.67B | 124.22B | 116.99B |
| Stockholders Equity | 107.61B | 104.06B | 106.22B | 109.39B | 116.92B |
Cash Flow | |||||
| Free Cash Flow | 7.62B | 6.84B | 10.39B | -5.03B | 3.02B |
| Operating Cash Flow | 24.38B | 23.14B | 23.57B | 10.19B | 16.30B |
| Investing Cash Flow | -14.33B | -16.22B | -9.47B | -15.38B | -11.79B |
| Financing Cash Flow | -11.22B | -7.04B | -13.14B | -987.00M | -8.48B |
CLP Holdings Technical Analysis
Negative
68.50
Price Trends
74.49
Negative
73.70
Negative
69.43
Positive
Market Momentum
-0.48
Positive
43.24
Neutral
44.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0002, the sentiment is Negative. The current price of 68.5 is below the 20-day moving average (MA) of 74.08, below the 50-day MA of 74.49, and below the 200-day MA of 69.43, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 44.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0002.
CLP Holdings Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$95.05B | 6.43 | 12.76% | 5.89% | -3.11% | -5.45% | |
68 Neutral | HK$119.77B | 19.21 | 6.94% | 5.15% | -16.10% | 1.91% | |
66 Neutral | HK$55.49B | 20.41 | 5.56% | 5.08% | 0.56% | 1.22% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | HK$184.81B | 17.33 | 9.82% | 4.54% | -3.24% | -10.85% | |
61 Neutral | HK$218.06B | 21.73 | 7.69% | 3.50% | -16.49% | -5.62% | |
57 Neutral | HK$126.14B | 21.87 | 9.73% | 4.94% | -2.07% | -0.42% |
* Utilities Sector Average
HK:0002
CLP Holdings
73.15
10.25
16.29%
HK:1816
CGN Power Co
2.87
0.29
11.28%
HK:0836
China Resources Power Holdings Co
18.36
0.68
3.85%
HK:0006
Power Assets Holdings
56.20
7.75
16.00%
HK:2638
HK Electric Investments & HK Electric Investments
6.28
0.87
16.15%
HK:0003
Hong Kong & China Gas Co
6.76
0.48
7.66%
CLP Holdings Corporate Events
CLP lifts Hong Kong power sales and doubles down on low-carbon infrastructure
May 18, 2026
CLP Holdings reported a 3.2% rise in first-quarter 2026 electricity sales in Hong Kong to 7,319 GWh, driven by stronger commercial, infrastructure and data centre demand amid a recovering local economy, even as residential usage declined. Despite ...
CLP Holdings Declares First Interim Dividend for 2026
May 18, 2026
CLP Holdings has declared a first interim ordinary dividend of HK$0.63 per share for the financial year ending 31 December 2026, based on the reporting period to 31 March 2026. The dividend will be paid in Hong Kong dollars, with an ex-dividend da...
CLP strengthens governance of sustainability strategy with updated committee mandate
May 8, 2026
CLP Holdings has updated the terms of reference for its Group Sustainability Committee, clarifying its role in overseeing sustainability strategy, risk management and disclosure across the CLP Group. The Committee is mandated to ensure the group o...
CLP Holdings Shareholders Approve All Resolutions at 2026 AGM
May 8, 2026
CLP Holdings reported that its Annual General Meeting on 8 May 2026 in Hong Kong, held both physically and online, had all directors except Bernard Chan in attendance either in person or electronically. Shareholders representing the full issued sh...
CLP Holdings Updates Board and Committee Roles After 2026 AGM
May 8, 2026
CLP Holdings announced changes to its board and board committees following its annual general meeting on 8 May 2026, with non-executive director Christina Gaw retiring after choosing not to seek re-election. The company confirmed the updated compo...
CLP Holdings Sets May Board Meeting to Weigh First 2026 Interim Dividend
Apr 30, 2026
CLP Holdings Limited is a Hong Kong–based power utility engaged in electricity generation, transmission, and distribution, with its shares listed on the Stock Exchange of Hong Kong under stock code 00002. The company is governed by a broad b...
CLP Holdings Sets 2026 Hybrid AGM and Seeks Limited Share Issue Mandate
Mar 25, 2026
CLP Holdings has called its 28th annual general meeting for 8 May 2026, to be held in a hybrid format combining a physical gathering at Kai Tak Stadium’s Celebration Hall and an online live webcast, giving shareholders flexibility to attend ...
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.