CLP Holdings (0002) AI Stock Analysis

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HK:0002 Dividends

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CLP Holdings

(OTC:0002)

73Outperform

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.

CLP Holdings (0002) vs. S&P 500 (SPY)

Market Cap

$170.28B

Dividend Yield4.67%

Average Volume (3M)4.11M

Price to Earnings (P/E)14.4

Beta (1Y)0.22

Revenue Growth4.35%

EPS Growth76.44%

CountryHK

Employees7,069

SectorUtilities

Sector Strength97

IndustryRegulated Electric

Share Statistics

EPS (TTM)2.29

Shares Outstanding2,526,450,700

10 Day Avg. Volume3,322,181

30 Day Avg. Volume4,110,497

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$74.43

Price Target Upside9.94% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

CLP Holdings Business Overview & Revenue Model

Company DescriptionCLP 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 MoneyCLP 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

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
14.90B	9.32B	8.18B	12.36B	14.84B
	EBITDA
26.76B	21.07B	12.18B	22.13B	23.32B
	Net Income Common Stockholders
11.88B	6.79B	1.06B	8.63B	11.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.98B	5.19B	4.29B	8.26B	11.71B
	Total Assets
233.71B	229.05B	236.03B	239.81B	234.23B
	Total Debt
65.30B	57.72B	64.06B	63.27B	59.65B
	Net Debt
60.33B	52.53B	59.77B	55.01B	47.94B
	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 Price67.70

Price Trends

50DMA

64.25

Positive

100DMA

63.74

Positive

200DMA

64.66

Positive

Market Momentum

MACD

1.01

Negative

RSI

72.39

Negative

STOCH

92.22

Negative

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 67.7 is above the 20-day moving average (MA) of 64.93, above the 50-day MA of 64.25, and above the 200-day MA of 64.66, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 72.39 is Negative, neither overbought nor oversold. The STOCH value of 92.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0002.

CLP Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0002	73 Outperform	$170.28B	14.36	11.36%	4.67%	4.35%	76.44%
Sector *	63 Neutral	$8.51B	10.86	5.35%	4.36%	3.73%	-11.28%

* Utilities Sector Average

Performance Comparison

HK:0002

CLP Holdings

67.70

5.27

8.44%

CPWIF

China Power International Development

0.38

-0.06

-13.64%

CRGGF

China Resources Gas Group

2.79

-0.69

-19.83%

CRPJF

China Resources Power Holdings Co

2.33

-0.37

-13.70%

HGKGF

Power Assets Holdings

6.92

1.18

20.56%

HOKCF

Hong Kong & China Gas Co

0.90

0.09

11.11%

CLP Holdings Earnings Call Summary

Earnings Call Date:Feb 24, 2025

(Q4-2024)

% Change Since: 7.08%|

Next Earnings Date:May 19, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong financial performance with significant growth in earnings and a dividend increase, driven by strategic expansions in renewable projects and a turnaround in Australia. However, challenges remain in the retail segment due to competitive market conditions, along with impacts from extreme weather and increased costs. Overall, the positives outweigh the negatives.

Q4-2024 Updates

Positive Updates

Significant Earnings Growth

Operating earnings before fair value movements increased by 8% year-on-year to nearly HKD11 billion, with total earnings up by 76% to HKD11.7 billion.

Dividend Increase

The Board recommended a fourth interim dividend of HKD1.26 per share, bringing 2024's total dividend to HKD3.15 per share, an increase of 1.6% from HKD3.10 in the prior year.

Expansion in Renewable Projects

Major projects include the construction of CLP China's largest wind and solar projects to date, both 300 megawatts, and expanding EnergyAustralia's flexible portfolio with a 350-megawatt 4-hour wind battery.

Strong Performance in Australia

EnergyAustralia saw a turnaround from a loss in 2023 to more than HKD590 million operating earnings before fair value movement in 2024.

Operational Excellence

Major gas infrastructure completed in Hong Kong, paving the way for phasing down coal, and record generation achieved by Yangjiang nuclear in China.

Negative Updates

Challenges in Retail Segment

Competitive market conditions in Australia resulted in a reduction in customer numbers, with higher churn and reduced customer accounts.

Impact of Extreme Weather

Reliability, measured by unplanned customer minute loss, was impacted by extreme weather and power supply incidents in Hong Kong.

Decrease in Generation Capacity

Generation capacity decreased due to the retirement of 3 coal units in Hong Kong and exits of minority share in Shandong Zhonghuan coal portfolio.

Lower Contribution from Mainland China

Reduced contribution from Mainland China due to lower contribution from nuclear fleet and tariff pressure on renewables.

Higher Interest and Depreciation Costs

Earnings were slightly impacted by higher interest costs, depreciation, and tax expense.

Company Guidance

During the 2024 Annual Results Briefing for CLP, significant metrics were highlighted, showcasing a robust financial performance. Operating earnings before fair value movements increased by 8% year-on-year, reaching nearly HKD11 billion, while total earnings surged by 76% to HKD11.7 billion. The Board recommended a fourth interim dividend of HKD1.26 per share, bringing the total dividend for 2024 to HKD3.15 per share, an increase of 1.6% from the prior year, yielding a 4.8% return based on the December share price. The company maintained network reliability at 99.999%, despite challenges from extreme weather and power supply incidents. Capital expenditure in 2024 included HKD11 billion in Hong Kong for non-carbon projects, with notable developments in China and India, including 300 MW wind and solar projects. EnergyAustralia's performance also improved significantly amidst high price volatility, contributing to overall growth momentum. The strategic review confirmed a focus on delivering cleaner energy, with a commitment to stable earnings and dividend growth.

CLP Holdings Corporate Events

CLP Holdings Board Meeting to Discuss Interim Dividend

May 2, 2025

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

Mar 25, 2025

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.

CLP Holdings Announces Director Retirement and New Advisory Role

Feb 25, 2025

CLP Holdings Limited announced the retirement of Sir Roderick Ian Eddington as an Independent Non-executive Director and a Member of the Finance & General Committee, effective from the conclusion of the 2025 Annual General Meeting. Despite stepping down from the board, Sir Rod Eddington will continue to contribute to the company as a Senior Advisor to the Chairman, leveraging his extensive experience and understanding of CLP’s operations and markets.

CLP Holdings Reports Strong 2024 Results and Advances in Non-Carbon Initiatives

Feb 24, 2025

CLP Holdings announced strong annual results for 2024, highlighting an 8.1% increase in operating earnings before fair value movements to HK$10,949 million and a significant rise in total earnings to HK$11,742 million. The company has made substantial progress in its non-carbon business, including the commissioning of a new gas-fired generation unit and the retirement of coal units in Hong Kong. CLP’s efforts align with Hong Kong’s decarbonization goals and support China’s renewable energy expansion. In Australia, EnergyAustralia’s improved operational performance has bolstered financial results. CLP remains committed to sustainable growth and contributing to regional decarbonization initiatives.

CLP Holdings to Present 2024 Annual Results

Feb 24, 2025

CLP Holdings Limited announced the presentation of its annual results for the year ended 31 December 2024. This disclosure follows a prior announcement of the results and is in compliance with Hong Kong’s listing rules. The company will hold an analyst briefing via webcast to discuss these results on 24 February 2025. This event aims to provide detailed insights into the company’s financial performance and strategic direction, which could influence investor sentiment and market positioning.

CLP Holdings Declares Fourth Interim Dividend for 2024

Feb 24, 2025

CLP Holdings Limited announced a fourth interim cash dividend of HKD 1.26 per share for the year ending 31 December 2024. This announcement is significant as it reflects the company’s financial health and commitment to returning value to shareholders. The dividend will be payable on 20 March 2025, with the ex-dividend date set for 7 March 2025. This decision underscores CLP Holdings’ stable financial performance and its strategic positioning within the energy sector, promising continued growth and shareholder confidence.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.