Power Assets Holdings (0006) AI Stock Analysis

• Market Cap: HK$121.90B
• Dividend Yield: 5.15%
• Average Volume (3M): 3.12M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.05
• 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$61.00 ▲(5.72% 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 and low leverage

A high equity ratio and low debt-to-equity provide long-term financial flexibility, enabling the company to fund capital projects, sustain dividends and withstand commodity or demand shocks. This strengthens ability to pursue renewables and cross-border investments without refinancing risk.

Diversified energy portfolio and geography

Exposure to electricity, gas and renewables across multiple jurisdictions reduces single-market and technology risk. Regulated utility cash flows in core markets plus growing renewables create a balanced revenue mix that supports steady long-term cash generation and strategic resilience.

Stable operating margins and robust ROE

Stable operating margins and a robust ROE indicate durable operational efficiency and profitable asset utilization. This supports internal funding for maintenance and growth capex, helps sustain dividends, and signals competitive cost structures in regulated and contracted businesses.

Negative Factors

Significant recent revenue decline

A ~25% decline in reported revenue is a material structural concern; sustained falls can impair free cash flow and constrain reinvestment. If driven by weakening demand or asset disposals, recovery may require multi-period efforts and could pressure dividend coverage and long-term growth plans.

Volatile operating cash flow generation

Intermittent or zero operating cash flow undermines the link between reported profits and real cash generation. Over the medium term this raises funding risk for capex, debt service and dividends, and may force asset sales or higher borrowing if volatility persists.

Net profit margins influenced by one-off items

Profitability boosted by non-recurring items reduces the predictability of earnings and weakens the quality of returns. For investors and management planning, reliance on one-offs masks core performance, complicates dividend sustainability assessments and may overstate ongoing cash generation.

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: Neutral
• STOCH: 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 57.7 is above the 20-day moving average (MA) of 55.20, above the 50-day MA of 52.94, and above the 200-day MA of 50.26, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 75.80 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0836	73 Outperform	HK$93.14B	7.14	13.23%	5.89%	1.42%	-10.32%
1038	72 Outperform	HK$144.75B	18.56	6.64%	4.50%	-10.67%	0.65%
0002	71 Outperform	HK$179.25B	15.89	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$133.04B	23.64	9.86%	4.94%	0.36%	2.55%
0902	63 Neutral	HK$117.79B	9.31	8.00%	4.74%	-3.78%	34.93%
0006	62 Neutral	HK$121.90B	19.49	7.05%	5.15%	-24.63%	1.74%

Power Assets Holdings Corporate Events

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.