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Power Assets Holdings (HK:0006)
:0006

Power Assets Holdings (0006) AI Stock Analysis

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HK

Power Assets Holdings

(OTC:0006)

Rating:62Neutral
Price Target:
HK$55.00
▲(8.27%Upside)
The stock score is primarily supported by strong financial performance and favorable technical indicators. However, concerns about cash flow volatility and a high P/E ratio indicate potential risks. The attractive dividend yield provides some balance in favor of the stock.

Power Assets Holdings (0006) vs. iShares MSCI Hong Kong ETF (EWH)

Power Assets Holdings Business Overview & Revenue Model

Company DescriptionPower 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 MoneyPower Assets Holdings makes money primarily through its investments in power-related assets and operations. The company's revenue streams include income from electricity transmission and distribution services, as well as returns on its investments in various power generation facilities. A significant portion of its earnings comes from regulated utility businesses, which provide stable and predictable cash flows. Additionally, Power Assets Holdings benefits from strategic partnerships and joint ventures with other energy companies, enhancing its ability to invest in and manage large-scale projects efficiently.

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
65
Positive
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
72
Positive
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
50
Neutral
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.77B1.29B1.26B1.28B1.27B
Gross Profit
6.35B1.29B1.28B1.63B1.46B
EBIT
6.31B1.13B1.13B1.49B1.31B
EBITDA
6.52B1.10B1.13B1.49B1.31B
Net Income Common Stockholders
6.12B6.00B5.65B6.14B6.13B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.73B4.20B5.89B4.61B5.43B
Total Assets
94.08B95.70B94.53B94.30B93.55B
Total Debt
2.51B3.10B3.24B3.44B3.64B
Net Debt
-224.00M645.00M356.00M-803.00M254.00M
Total Liabilities
7.00B6.95B7.67B7.54B8.79B
Stockholders Equity
87.08B88.75B86.86B86.77B84.77B
Cash FlowFree Cash Flow
941.00M1.14B771.00M939.00M960.00M
Operating Cash Flow
941.00M1.14B772.00M939.00M962.00M
Investing Cash Flow
5.69B4.61B4.01B5.93B5.13B
Financing Cash Flow
-6.35B-6.19B-6.14B-6.02B-5.98B

Power Assets Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price50.80
Price Trends
50DMA
48.26
Positive
100DMA
48.68
Positive
200DMA
49.25
Positive
Market Momentum
MACD
0.61
Negative
RSI
57.40
Neutral
STOCH
77.24
Neutral
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 50.8 is above the 20-day moving average (MA) of 50.17, above the 50-day MA of 48.26, and above the 200-day MA of 49.25, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 77.24 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$8.54B10.304.24%4.37%4.14%-13.04%
62
Neutral
HK$108.26B17.696.95%5.58%-28.87%1.93%
$15.84B16.076.62%4.99%
$21.30B14.1611.36%4.79%
$14.06B6.1315.59%5.72%
$16.19B22.179.72%5.15%
$14.19B9.527.63%4.45%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0006
Power Assets Holdings
50.80
10.13
24.89%
CKISF
CK Infrastructure Holdings
6.64
1.08
19.42%
CLPHF
CLP Holdings
8.44
0.40
4.98%
CRPJF
China Resources Power Holdings Co
2.33
-0.77
-24.84%
HOKCF
Hong Kong & China Gas Co
0.87
0.15
20.83%
HUNGF
Huaneng Power International
0.63
-0.05
-7.35%

Power Assets Holdings Corporate Events

Power Assets Holdings Strengthens Governance with Nomination Committee
May 21, 2025

Power Assets Holdings Ltd. has outlined the terms of reference for its Nomination Committee, which was established to ensure compliance with corporate governance standards. The committee’s responsibilities include reviewing the board’s structure and diversity, identifying and recommending director candidates, and assessing the independence of non-executive directors. This initiative is aimed at enhancing the board’s effectiveness and aligning with the company’s corporate strategy to promote shareholder value.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$48.00 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 Successful AGM Results
May 21, 2025

Power Assets Holdings announced the results of its Annual General Meeting held on May 21, 2025, where all proposed resolutions were passed. Key resolutions included the approval of the company’s financial statements, declaration of a final dividend, election of directors, appointment of KPMG as auditor, and amendments to the company’s articles of association. The approval of these resolutions signifies strong shareholder support and positions the company for continued stability and growth.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$48.00 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 Appoints New Nomination Committee Member
May 21, 2025

Power Assets Holdings Limited has announced the appointment of Ms. KOH Poh Wah, an independent non-executive director, as a member of its Nomination Committee, effective from May 21, 2025. This appointment reflects the company’s ongoing efforts to strengthen its governance structure, potentially impacting its strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$48.00 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 Board Composition and Committee Roles
May 21, 2025

Power Assets Holdings Limited has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The board is chaired by Andrew John Hunter, with Tsai Chao Chung, Charles serving as the CEO. The announcement also details the membership of the board’s four committees: Audit, Remuneration, Nomination, and Sustainability, highlighting the leadership roles within these committees. This update on the board’s structure and committee assignments is crucial for stakeholders as it reflects the company’s governance and strategic oversight, potentially impacting its operational and strategic direction.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$48.00 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 Ltd. Strengthens Governance with New Audit Committee Terms
May 21, 2025

Power Assets Holdings Ltd. has outlined the terms of reference for its Audit Committee, emphasizing the importance of independent oversight in its governance structure. The committee, composed mainly of independent non-executive directors, is tasked with ensuring financial integrity and transparency, which is crucial for maintaining stakeholder trust and compliance with regulatory standards.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$48.00 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 2025 AGM with Key Financial Decisions
Apr 22, 2025

Power Assets Holdings has announced its upcoming Annual General Meeting (AGM) to be held on May 21, 2025, in a hybrid format both in-person in Hong Kong and online. Key agenda items include reviewing the financial statements for the year ending December 31, 2024, declaring a final dividend, re-electing directors, appointing an auditor, and authorizing a general mandate for the issuance of additional shares up to 10% of the current total. This meeting is significant as it will address important governance and financial decisions that could impact the company’s future operations and shareholder value.

Power Assets Holdings Proposes Amendments to Modernize Articles of Association
Mar 19, 2025

Power Assets Holdings Limited has announced proposed amendments to its Articles of Association to align with new legal and regulatory requirements, including the expanded paperless listing regime and electronic dissemination of corporate communications. These changes, pending shareholder approval at the annual general meeting in May 2025, aim to modernize the company’s operations by adopting an implied consent mechanism for website-based communication, reflecting a significant shift towards digital processes.

Power Assets Holdings Reports Robust 2024 Financial Performance and Strategic Growth
Mar 19, 2025

Power Assets Holdings Limited reported a robust financial performance for 2024, with a net profit of HK$6,119 million, marking a 2% growth from the previous year. The company has strategically expanded its portfolio through acquisitions, including Phoenix Energy and UK Renewables Energy, enhancing its market position and ensuring sustainable growth. The firm maintains a strong financial foundation with a low net debt to net total capital ratio and an ‘A/Stable’ credit rating, positioning it well for future opportunities. The UK market remains significant for Power Assets, contributing HK$3,199 million in 2024, supported by strong operational results from UK Power Networks and other entities.

Power Assets Holdings Announces Final Dividend for 2024
Mar 19, 2025

Power Assets Holdings Limited announced a final ordinary dividend of HKD 2.04 per share for the financial year ending December 31, 2024. This announcement, dated March 19, 2025, outlines the key dates for shareholders, including the ex-dividend date on May 26, 2025, and the payment date on June 10, 2025. The dividend reflects the company’s stable financial performance and commitment to returning value to its shareholders.

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.