CLP Holdings (0002) AI Stock Analysis

• Market Cap: $167.76B
• Dividend Yield: 4.79%
• Average Volume (3M): 3.34M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.21
• Revenue Growth: 4.35%
• EPS Growth: 76.44%
• Country: HK
• Employees: 7,069
• Sector: Utilities
• Sector Strength: 79
• Industry: Regulated Electric
• EPS (TTM): N/A
• Shares Outstanding: 2,526,450,700
• 10 Day Avg. Volume: 3,558,530
• 30 Day Avg. Volume: 3,337,361
• PEG Ratio: 1.54
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.06
• 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: $72.97
• Price Target Upside: 10.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ―

CLP Holdings exhibits strong financial performance with robust earnings growth and improved profitability, supported by strategic expansions in renewables. However, increased leverage and declining free cash flow are potential risks. The neutral technical indicators and moderate valuation, balanced by a solid dividend, suggest a stable outlook. The positive earnings call further reinforces confidence, though challenges in certain segments require attention.

Positive Factors

Earnings Growth

Australia operation turned from a loss of HK$590m in 1HFY23 to a profit of HK$611m in 1HFY24, driving 17.6% growth in total earnings.

Energy Transition

CLP is grabbing growth opportunities in the energy transition and electrification trend by expanding its renewable energy portfolio and investing in smart energy solutions to improve energy efficiency and reduce carbon emissions.

Financial Performance

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

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 is a leading investor and operator in the energy sector across the Asia-Pacific region. Founded in 1901 and headquartered in Hong Kong, the company operates in various segments including electricity generation, transmission, and distribution. CLP Holdings focuses on providing reliable and sustainable energy solutions, with a diversified portfolio that includes coal, gas, nuclear, and renewable energy sources such as wind and solar power.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
87.95B	90.96B	87.17B	100.66B	83.96B	79.59B
	Gross Profit
21.53B	29.33B	28.53B	8.18B	12.36B	14.84B
	EBIT
14.34B	14.90B	9.32B	8.18B	12.36B	14.84B
	EBITDA
20.08B	26.76B	21.07B	12.18B	22.13B	23.32B
	Net Income Common Stockholders
7.62B	11.88B	6.79B	1.06B	8.63B	11.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.36B	4.98B	5.19B	4.29B	8.26B	11.71B
	Total Assets
179.35B	233.71B	229.05B	236.03B	239.81B	234.23B
	Total Debt
71.72B	65.30B	57.72B	64.06B	63.27B	59.65B
	Net Debt
67.70B	60.33B	52.53B	59.77B	55.01B	47.94B
	Total Liabilities
99.60B	123.59B	116.67B	124.22B	116.99B	112.15B
	Stockholders Equity
79.66B	104.06B	106.22B	105.50B	113.03B	112.20B
Cash Flow		Free Cash Flow
13.29B	6.84B	10.39B	-5.03B	3.02B	11.02B
	Operating Cash Flow
27.74B	23.14B	23.57B	10.19B	16.30B	22.06B
	Investing Cash Flow
-15.85B	-16.22B	-9.47B	-17.31B	-14.10B	-12.09B
	Financing Cash Flow
-10.32B	-7.04B	-13.14B	1.01B	-6.77B	-8.29B

CLP Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 66.15 is above the 20-day moving average (MA) of 65.97, above the 50-day MA of 64.79, and above the 200-day MA of 64.28, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 45.99 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	80 Outperform	$108.20B	7.05	15.59%	5.72%	1.89%	29.67%
1038	73 Outperform	$124.92B	16.24	6.62%	4.99%	-16.64%	1.10%
0002	73 Outperform	$167.76B	14.29	11.36%	4.79%	4.35%	76.44%
0003	70 Outperform	$127.07B	22.25	9.72%	5.15%	-2.63%	-5.90%
2638	68 Neutral	$50.81B	16.33	6.32%	5.61%	5.71%	-1.43%
Sector *	64 Neutral	$8.54B	10.30	4.69%	4.37%	4.14%	-13.04%
0006	62 Neutral	HK$108.26B	17.69	6.95%	5.58%	-28.87%	1.93%

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.

CLP Holdings Announces Hybrid Format for 2025 AGM

CLP Holdings Limited has announced its 2025 Annual General Meeting (AGM) to be held in a hybrid format, allowing shareholders to participate either physically or online. The AGM will cover important business matters including the reception of financial statements, election and re-election of directors, re-appointment of auditors, and adoption of a new set of Articles of Association. Additionally, resolutions regarding the remuneration of non-executive directors for the upcoming years will be considered, reflecting the company’s commitment to governance and stakeholder engagement.