CLP Holdings (0002) AI Stock Analysis

• Market Cap: HK$189.36B
• Dividend Yield: 4.54%
• Average Volume (3M): 4.16M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.13
• Revenue Growth: 2.02%
• EPS Growth: 51.27%
• Country: HK
• Employees: 7,069
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): N/A
• Shares Outstanding: 2,526,450,700
• 10 Day Avg. Volume: 4,295,647
• 30 Day Avg. Volume: 4,164,030
• PEG Ratio: 0.18
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 24.13
• 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: HK$74.50
• Price Target Upside: 8.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 35.52
• Revenue Forecast (FY): HK$707.22B

• Rating: 71 Outperform
• Price Target: HK$75.00 ▲(9.49% Upside)

CLP Holdings scores well due to strong financial performance, particularly in revenue and profit growth, despite some concerns about leverage and cash flow. The technical analysis supports a bullish outlook with positive momentum indicators. Valuation is fair, with an attractive dividend yield. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Strong Hong Kong Business Performance

The strong performance in Hong Kong, with high reliability and significant CapEx, ensures a stable revenue base and supports long-term growth through infrastructure investments.

Energy Transition Projects in Mainland

Commissioning new renewable projects enhances CLP's portfolio, aligning with global sustainability trends and providing long-term growth opportunities through diversified energy sources.

Strategic Partnerships

Strategic partnerships in energy storage projects bolster CLP's capacity portfolio, increasing flexibility and resilience in energy supply, crucial for adapting to future energy demands.

Negative Factors

Decrease in Operating Earnings

The decline in operating earnings reflects challenges in key markets, which could pressure profitability and limit financial flexibility if not addressed effectively.

Challenges in Australia

Intense competition and economic pressures in Australia could hinder CLP's market share and profitability, necessitating strategic adjustments to maintain competitive advantage.

Reduced Cash Flow

Reduced free cash flow limits CLP's ability to reinvest in growth opportunities or reduce debt, potentially impacting long-term financial health and operational flexibility.

CLP Holdings Business Overview & Revenue Model

Company Description

CLP Holdings Limited (stock code: 0002) is one of the largest investor-owned power businesses in Asia, with a diversified portfolio that includes electricity generation, transmission, and distribution. Established in 1901 and headquartered in Hong Kong, CLP operates in multiple sectors, including conventional power generation, renewable energy, and energy-related services. The company primarily serves customers in Hong Kong, mainland China, India, and Southeast Asia, focusing on providing reliable and sustainable energy solutions through a mix of thermal, hydro, wind, and solar power.

How the Company Makes Money

CLP Holdings generates revenue through several key streams: electricity sales from its generation assets, which include coal, gas, and renewable energy sources; transmission and distribution services that ensure electricity reaches consumers; and energy-related services that encompass energy efficiency and management solutions. The company benefits from long-term power purchase agreements (PPAs) and regulated tariffs in its core markets, particularly in Hong Kong, which provide a stable revenue base. Additionally, CLP invests in renewable energy projects, aligning with global trends towards sustainability, thereby enhancing its earnings potential while responding to regulatory and market demands for cleaner energy solutions.

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	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	20.39B	29.33B	28.53B	18.86B	26.63B	28.04B
EBITDA	23.95B	24.23B	21.07B	14.19B	21.52B	23.19B
Net Income	11.51B	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	4.29B	8.26B	13.91B
Total Debt	66.41B	66.14B	59.33B	61.03B	63.27B	57.16B
Total Liabilities	124.83B	123.59B	116.67B	124.22B	116.99B	112.15B
Stockholders Equity	109.66B	104.06B	106.22B	109.39B	116.92B	116.09B
Cash Flow
Free Cash Flow	5.55B	6.84B	10.39B	-5.03B	3.02B	11.02B
Operating Cash Flow	21.34B	23.14B	23.57B	10.19B	16.30B	22.06B
Investing Cash Flow	-16.22B	-16.22B	-9.47B	-15.38B	-11.79B	-10.08B
Financing Cash Flow	-6.00B	-7.04B	-13.14B	-987.00M	-8.48B	-10.21B

CLP Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 68.5 is below the 20-day moving average (MA) of 73.13, below the 50-day MA of 70.41, and above the 200-day MA of 66.47, indicating a bullish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 72.25 is Negative, neither overbought nor oversold. The STOCH value of 67.61 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
0836	73 Outperform	HK$90.91B	6.81	13.23%	5.89%	1.42%	-10.32%
1038	72 Outperform	HK$153.70B	20.00	6.64%	4.50%	-10.67%	0.65%
0002	71 Outperform	HK$189.36B	16.48	10.96%	4.54%	2.02%	51.27%
2638	69 Neutral	HK$59.20B	18.48	6.56%	5.08%	2.58%	1.42%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0003	65 Neutral	HK$142.19B	24.93	9.86%	4.94%	0.36%	2.55%
0006	62 Neutral	HK$131.28B	21.38	7.05%	5.15%	-24.63%	1.74%

CLP Holdings Corporate Events

CLP Holdings Updates Connected Power Sales Deals with China Southern Power Grid

CLP Holdings has renewed and entered into a series of power purchase agreements and related electricity sale arrangements with China Southern Power Grid Group (CSG Group) in 2025, including contracts for existing projects, a new Sandu wind project phase II, and a high-voltage electricity supply contract for the Bobai wind project, as well as continued Power Exchange Sales involving electricity and green electricity certificates. When aggregated, these continuing connected transactions with CSG Group are expected to result in an annual aggregate cap that exceeds 1% but remains below 5% of the applicable Listing Rules percentage ratios, triggering disclosure and annual review requirements; the company emphasizes that all agreements are conducted in the ordinary course of business and priced on an arm’s length basis, underscoring the strategic importance of cross-border power sales and risk-managed settlement arrangements for its operations in the Chinese mainland market.

The most recent analyst rating on (HK:0002) stock is a Buy with a HK$75.00 price target. To see the full list of analyst forecasts on CLP Holdings stock, see the HK:0002 Stock Forecast page.

CLP Tightens Audit & Risk Committee Mandate to Bolster Governance and Oversight

CLP Holdings has updated the terms of reference for its Audit & Risk Committee as of 31 December 2025, reinforcing the committee’s mandate to oversee internal controls, financial and non-financial reporting practices, audit scope, and compliance with legal, regulatory and stock exchange requirements across the CLP Group. The committee, composed entirely of independent non-executive directors with required financial expertise, is empowered to access management, staff and auditors to investigate any matters within its remit, underscoring the group’s emphasis on disciplined risk management, ethical conduct and robust corporate governance, including for its EnergyAustralia operations.

The most recent analyst rating on (HK:0002) stock is a Buy with a HK$75.00 price target. To see the full list of analyst forecasts on CLP Holdings stock, see the HK:0002 Stock Forecast page.