Power Assets Holdings (0006) AI Stock Analysis

• Market Cap: HK$131.28B
• Dividend Yield: 5.15%
• Average Volume (3M): 3.12M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.03
• Revenue Growth: -24.63%
• EPS Growth: 1.74%
• Country: HK
• Employees: 14
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 1.43
• Shares Outstanding: 2,131,105,200
• 10 Day Avg. Volume: 3,286,865
• 30 Day Avg. Volume: 3,118,584
• PEG Ratio: 10.65
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 17.05
• P/FCF Ratio: 122.75
• 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$51.00
• Price Target Upside: -11.61% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: HK$65.00 ▲(12.65% Upside)

Power Assets Holdings shows strong financial stability and an attractive dividend yield, which are significant strengths. However, technical indicators suggest weak momentum, and cash flow volatility poses a risk to sustained growth. The stock's valuation is fair, with a strong dividend yield enhancing its appeal.

Positive Factors

Strong balance sheet / low leverage

High equity ratio and low debt-to-equity indicate prudent capital structure and financial flexibility. This supports the company's ability to fund investments, sustain distributions and absorb shocks over the next several months without needing risky refinancing.

Regulated utility portfolio and diversification

Exposure to regulated transmission, distribution and generation across multiple markets provides predictable allowed returns and reduces cyclicality. As a holding company, steady dividend and profit-share streams from regulated assets support durable cash generation.

Stable operating margins

Consistent gross and stable EBIT/EBITDA margins suggest efficient cost management in investee operations. Margin stability in regulated businesses tends to persist, underpinning resilient operating cash flows and earnings power over medium term.

Negative Factors

Material recent revenue decline

A steep ~25% revenue contraction materially reduces distributable income from investees and may reflect weaker demand or portfolio changes. Continued top-line weakness would constrain dividend receipts and limit reinvestment or yield support over coming quarters.

Volatile operating cash flow

Periods of zero operating cash flow indicate earnings are not reliably converting to cash. For a holding company reliant on dividend and profit-share cash, this volatility raises short-to-medium-term liquidity and payout sustainability risks.

Earnings quality concerns from one-offs

Elevated net margin driven by non-recurring items reduces the predictability of reported earnings. If one-offs normalize, reported profitability and distributable earnings could decline, complicating forecasting and capital allocation decisions.

Power Assets Holdings Business Overview & Revenue Model

Company Description

Power Assets Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; holds property and deposits; and provides consulting, investing, trust administration, and management services. It has a generation capacity of 1,064 MW renewable energy/energy from waste, 5,214 MW gas fired, and 3,815 MW coal/oil fired; and operates 114,200 km of gas/oil pipeline, as well as 402,500 km of power network serving 19,344,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.

How the Company Makes Money

Power Assets Holdings generates revenue through several key streams: its core business of electricity and gas distribution, which involves the sale of electricity and gas to consumers and businesses; investments in power generation projects, where it earns returns based on the energy produced and sold; and its growing portfolio of renewable energy assets, which contribute to revenue through government incentives and energy sales. Additionally, the company may enter partnerships with local and international energy firms to co-develop projects, share resources, and enhance operational efficiencies, which can further bolster its earnings. The company's diversified geographical presence also mitigates risks associated with market fluctuations in any single region.

Power Assets Holdings Financial Statement Overview

Summary

Power Assets Holdings demonstrates strong profitability and a solid balance sheet, indicating resilience and financial health. However, recent declines in revenue and cash flow volatility may pose challenges to sustained growth. The company needs to focus on improving cash flow generation to support long-term stability.

Income Statement

Power Assets Holdings shows a consistent ability to generate revenue, although there has been a recent decline in total revenue from the previous year. The company maintains a strong gross profit margin, indicating efficient cost management. However, the net profit margin is unusually high due to one-off items or accounting adjustments, which may not be sustainable. EBIT and EBITDA margins have been stable, reflecting operational efficiency.

Balance Sheet

The company has a strong balance sheet with a high equity ratio, indicating financial stability and low leverage. The debt-to-equity ratio is low, suggesting prudent financial management. Return on Equity (ROE) is robust, driven by high net income. Overall, the balance sheet indicates a well-capitalized company with financial flexibility.

Cash Flow

Cash flow from operations has been volatile, with recent periods showing zero operating cash flow, which raises concerns about cash generation. The free cash flow growth rate is not available due to recent zero values. The operating cash flow to net income ratio suggests cash generation issues relative to reported net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	989.00M	6.77B	1.29B	1.26B	1.28B	1.27B
Gross Profit	989.00M	6.35B	1.29B	1.26B	1.17B	1.46B
EBITDA	379.00M	6.52B	1.14B	1.17B	1.49B	1.31B
Net Income	6.16B	6.12B	6.00B	5.65B	6.14B	6.13B
Balance Sheet
Total Assets	97.10B	94.08B	95.70B	94.53B	94.30B	93.55B
Cash, Cash Equivalents and Short-Term Investments	1.56B	2.73B	4.20B	5.89B	4.61B	5.43B
Total Debt	3.77B	2.51B	3.10B	3.24B	3.44B	3.64B
Total Liabilities	8.18B	7.00B	6.95B	7.67B	7.54B	8.79B
Stockholders Equity	88.92B	87.08B	88.75B	86.86B	86.77B	84.77B
Cash Flow
Free Cash Flow	2.89B	941.00M	1.14B	771.00M	939.00M	960.00M
Operating Cash Flow	2.89B	941.00M	1.14B	772.00M	939.00M	962.00M
Investing Cash Flow	144.00M	5.69B	4.61B	4.01B	5.93B	5.13B
Financing Cash Flow	-5.06B	-6.35B	-6.19B	-6.14B	-6.02B	-5.98B

Power Assets Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0006, the sentiment is Positive. The current price of 57.7 is below the 20-day moving average (MA) of 58.62, above the 50-day MA of 55.52, and above the 200-day MA of 51.41, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 75.20 is Negative, neither overbought nor oversold. The STOCH value of 86.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0006.

Power Assets 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%
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%
0902	63 Neutral	HK$111.49B	8.58	8.00%	4.74%	-3.78%	34.93%
0006	62 Neutral	HK$131.28B	21.38	7.05%	5.15%	-24.63%	1.74%

Power Assets Holdings Corporate Events

Power Assets Announces Board Change and Audit Committee Reorganisation

Power Assets Holdings has announced that independent non-executive director Anthony Wu will step down from the board and leave his position on the audit committee with effect from 21 January 2026, citing the need to devote more time to other business and personal commitments. The company said Wu has no disagreement with the board and no issues to bring to shareholders’ attention, while the board expressed appreciation for his years of service; independent non-executive director Stephen Edward Bradley has been appointed to the audit committee, ensuring continuity in the company’s audit oversight and board governance structure.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$61.00 price target. To see the full list of analyst forecasts on Power Assets Holdings stock, see the HK:0006 Stock Forecast page.

Power Assets Discloses Board and Committee Composition

Power Assets Holdings Limited has announced the current composition of its board of directors, listing four executive directors, three non-executive directors and four independent non-executive directors, with Chairman Andrew John Hunter and Chief Executive Officer Tsai Chao Chung, Charles leading the executive team. The company also outlined the structure and membership of its four key board committees—Audit, Remuneration, Nomination and Sustainability—clarifying which directors chair and sit on each committee, a move that enhances transparency of governance arrangements and highlights the role of independent directors in overseeing financial reporting, executive pay, board appointments and sustainability matters.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$61.00 price target. To see the full list of analyst forecasts on Power Assets Holdings stock, see the HK:0006 Stock Forecast page.

Power Assets Holdings Announces Continuing Connected Transactions with AGN Group

Power Assets Holdings announced that its Service Providers have become indirect wholly-owned subsidiaries of CK William, making the transactions under the O&M Service Agreements with the AGN Group continuing connected transactions. These agreements, which involve the management of gas distribution networks in Australia, are subject to reporting and annual review requirements but are exempt from independent shareholders’ approval. The service fees include a management fee based on revenue and an incentive bonus for meeting performance targets.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$53.00 price target. To see the full list of analyst forecasts on Power Assets Holdings stock, see the HK:0006 Stock Forecast page.