CLP Holdings (0002) AI Stock Analysis

• Market Cap: $167.63B
• Dividend Yield: 3.8%
• Average Volume (3M): 3.07M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.26
• Revenue Growth: 4.35%
• EPS Growth: 76.44%
• Country: HK
• Employees: 7,069
• Sector: Utilities
• Sector Strength: 72
• Industry: Regulated Electric
• EPS (TTM): N/A
• Shares Outstanding: 2,526,450,700
• 10 Day Avg. Volume: 2,895,501
• 30 Day Avg. Volume: 3,069,379
• PEG Ratio: -1.52
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $72.92
• Price Target Upside: 9.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: HK$74.00 ▲(11.53%Upside)

CLP Holdings scores well due to strong financial performance characterized by robust revenue and profit growth, alongside stable technical indicators. The valuation is attractive, with a reasonable P/E ratio and solid dividend yield. However, increased leverage and declining free cash flow require careful monitoring to maintain future stability.

Positive Factors

Dividend Sustainability

The analyst maintains a BUY rating given CLP's solid dividend per share with high sustainability, translating into a decent yield of around 4.8%.

Financial Performance

Cashflow remained healthy with free cashflow climbing from HK$5.2bn in 1HFY23 to HK$8.0bn in 1HFY24.

Renewable Energy Expansion

CLP is expanding its renewable energy portfolio and investing in smart energy solutions to improve energy efficiency and reduce carbon emissions.

Negative Factors

Operational Challenges

In Australia, initiatives are being taken to improve operational performance, such as renegotiating the coal supply contract for Mount Piper and accelerating major outages for units at Yallourn.

CLP Holdings Business Overview & Revenue Model

Company Description

CLP 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 Money

CLP Holdings makes money primarily through its electricity generation, transmission, and distribution activities. The company's revenue streams are mainly derived from selling electricity to residential, commercial, and industrial customers. Its regulated business in Hong Kong is a significant contributor to its earnings, where the company operates under a Scheme of Control Agreement, allowing it to earn a fixed return on its investments in electricity infrastructure. In addition to its core operations in Hong Kong, CLP Holdings has substantial investments in power projects in Mainland China, India, Southeast Asia, and Australia. These projects contribute to its revenue through long-term power purchase agreements and energy trading activities. CLP also invests in the development of renewable energy sources, which are becoming increasingly important to its business model. Strategic partnerships and joint ventures with other energy companies also play a role in expanding its market reach and enhancing profitability.

CLP Holdings Financial Statement Overview

Summary

CLP Holdings demonstrates solid revenue and profit growth with improved profitability margins. However, increased leverage and a decline in free cash flow could pose risks if not managed prudently. The company benefits from a strong equity base and good cash generation capabilities, but monitoring cash flow trends and debt levels is essential for future stability.

Income Statement

CLP Holdings showed robust revenue growth of 4.35% from 2023 to 2024. The gross profit margin improved slightly to 32.25%, and the net profit margin increased significantly to 13.06%, indicating enhanced profitability. The EBIT margin rose to 16.39%, and the EBITDA margin was strong at 29.42%. Overall, the company's income statement reflects positive growth and profitability trends, although the previous years showed volatility.

Balance Sheet

The debt-to-equity ratio increased to 0.63, reflecting higher leverage, which could indicate potential risks if not managed carefully. Return on equity (ROE) improved significantly to 11.41%, showcasing better utilization of equity to generate profits. The equity ratio remains stable at 44.52%, suggesting a solid capital structure. While leverage has increased, the company maintains a strong equity base.

Cash Flow

The free cash flow decreased by 34.25% from 2023 to 2024. The operating cash flow to net income ratio is robust at 1.95, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio decreased to 0.58, showing reduced cash availability for reinvestment or debt reduction. Despite healthy operating cash flows, declining free cash flow may pose a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.96B	87.17B	100.66B	83.96B	79.59B
Gross Profit	29.33B	28.53B	8.18B	12.36B	14.84B
EBITDA	24.23B	21.07B	12.18B	22.13B	23.32B
Net Income	11.88B	6.79B	1.06B	8.63B	11.59B
Balance Sheet
Total Assets	233.71B	229.05B	236.03B	239.81B	234.23B
Cash, Cash Equivalents and Short-Term Investments	4.98B	5.19B	4.29B	8.26B	11.71B
Total Debt	65.30B	57.72B	64.06B	63.27B	59.65B
Total Liabilities	123.59B	116.67B	124.22B	116.99B	112.15B
Stockholders Equity	104.06B	106.22B	105.50B	113.03B	112.20B
Cash Flow
Free Cash Flow	6.84B	10.39B	-5.03B	3.02B	11.02B
Operating Cash Flow	23.14B	23.57B	10.19B	16.30B	22.06B
Investing Cash Flow	-16.22B	-9.47B	-17.31B	-14.10B	-12.09B
Financing Cash Flow	-7.04B	-13.14B	1.01B	-6.77B	-8.29B

CLP Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0002, the sentiment is Positive. The current price of 66.35 is above the 20-day moving average (MA) of 66.20, above the 50-day MA of 65.86, and above the 200-day MA of 64.27, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 65.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0002.

CLP Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0002	75 Outperform	$167.63B	14.28	11.36%	3.80%	4.35%	76.44%
Sector *	67 Neutral	$16.42B	16.95	4.63%	3.59%	4.77%	6.10%
CKISF		$15.87B	16.06	6.62%	5.00%	―	―
CRPJF		$12.53B	6.13	15.59%	7.63%	―	―
HGKGF		$13.76B	17.27	6.95%	8.26%	―	―
HKCVF		$6.46B	16.18	6.32%	0.73%	―	―
HOKCF		$15.81B	21.59	9.72%	0.88%	―	―

CLP Holdings Corporate Events

CLP Holdings Q1 2025: Sales Dip Amid Decarbonization Drive

CLP Holdings reported a 2.6% decrease in electricity sales in Hong Kong for the first quarter of 2025, attributed to milder weather and the absence of a leap year. Despite the decline, the company is advancing its decarbonization efforts by upgrading energy infrastructure and introducing innovative technologies like AI-powered grid monitoring and drone inspections. CLP is also expanding its electric vehicle charging network to support Hong Kong’s transition to cleaner transport. In Mainland China, CLP’s non-carbon assets showed stable performance, with increased generation from nuclear power stations, although market sales led to lower average tariffs.

The most recent analyst rating on (HK:0002) stock is a Buy with a HK$78.00 price target. To see the full list of analyst forecasts on CLP Holdings stock, see the HK:0002 Stock Forecast page.

CLP Holdings Declares First Interim Dividend for 2025

CLP Holdings Limited has announced a first interim dividend of HKD 0.63 per share for the financial year ending December 31, 2025. This declaration reflects the company’s commitment to delivering shareholder value and maintaining its strong market position in the energy sector. The dividend will be paid on June 13, 2025, with an ex-dividend date of June 2, 2025, indicating a stable financial outlook and continued focus on rewarding its investors.

The most recent analyst rating on (HK:0002) stock is a Buy with a HK$78.00 price target. To see the full list of analyst forecasts on CLP Holdings stock, see the HK:0002 Stock Forecast page.

CLP Holdings Enhances Financial Oversight through Board Committee

CLP Holdings Limited’s Finance & General Committee is tasked with overseeing the company’s financial operations and investment activities. The committee reviews financial strategies, major transactions, and corporate policies, ensuring alignment with the company’s strategic goals. This oversight is crucial for maintaining financial stability and supporting the company’s growth initiatives, impacting stakeholders by ensuring sound financial management and strategic decision-making.

CLP Holdings AGM: All Resolutions Passed with Strong Shareholder Support

CLP Holdings Limited held its Annual General Meeting on May 9, 2025, where all proposed resolutions were passed by shareholder vote. Key resolutions included the election and re-election of directors and the reappointment of PricewaterhouseCoopers as the company’s independent auditor. This successful AGM reflects strong shareholder support and is likely to reinforce CLP Holdings’ governance and operational strategies.

CLP Holdings Board Meeting to Discuss Interim Dividend

CLP Holdings Limited has announced that its Board of Directors will meet on May 19, 2025, to consider the declaration of the first interim dividend for the year. This meeting is significant for stakeholders as it will determine the company’s interim dividend policy, potentially impacting shareholder returns and market perception.