HK Electric Investments & HK Electric Investments Ltd. (HK:2638)
:2638
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HK Electric Investments & HK Electric Investments
(2638)
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Rating:66Neutral
Price Target:
HK$7.00
â–²(9.20% Upside)
Action:ReiteratedDate:04/23/26
The score is driven primarily by steady regulated-utility profitability, tempered by leverage and uneven free cash flow. Technicals are neutral-to-slightly weak, while valuation is supported by a near-5% dividend yield but only moderate (not clearly cheap) earnings multiple.
Positive Factors
Regulated utility earnings profile
The regulated framework yields predictable recovery of prudently incurred costs and an allowed return on capital, underpinning steady margins and earnings. This structural protection supports reliable cash generation and operational planning over multi‑quarter horizons, reducing revenue volatility risk.
Negative Factors
Meaningful leverage (debt ~ parity with equity)
Debt at roughly 1:1 with equity increases sensitivity to higher financing costs and limits balance sheet flexibility. In a capital‑intensive regulated business, this leverage constrains the ability to accelerate decarbonization or absorb shocks without tapping markets or adjusting dividends over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility earnings profile
The regulated framework yields predictable recovery of prudently incurred costs and an allowed return on capital, underpinning steady margins and earnings. This structural protection supports reliable cash generation and operational planning over multi‑quarter horizons, reducing revenue volatility risk.
Read all positive factors
HK Electric Investments & HK Electric Investments (2638) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$56.73B
Dividend Yield5.08%
Average Volume (3M)2.42M
Price to Earnings (P/E)18.1
Beta (1Y)0.13
Revenue Growth0.56%
EPS Growth1.22%
CountryHK
Employees1,649
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.24
Shares Outstanding8,836,200,000
10 Day Avg. Volume1,826,547
30 Day Avg. Volume2,422,523
Financial Highlights & Ratios
PEG Ratio6.33
Price to Book (P/B)1.13
Price to Sales (P/S)4.59
P/FCF Ratio16.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.31Price Target Upside14.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.38
Revenue Forecast (FY)HK$12.81B
HK Electric Investments & HK Electric Investments Business Overview & Revenue Model
Company Description
HK Electric Investments and HK Electric Investments Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong Island and Lamma Island. As of December 31, 2021, the company operate...
How the Company Makes Money
The company makes money primarily by supplying electricity under a regulated utility framework. Its main revenue stream is electricity sales to residential, commercial, and industrial customers on Hong Kong Island, where income is driven by units ...
HK Electric Investments & HK Electric Investments Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.13B | 12.06B | 11.41B | 10.79B | 11.34B |
| Gross Profit | 6.08B | 6.46B | 6.02B | 5.43B | 5.85B |
| EBITDA | 8.52B | 8.63B | 8.08B | 7.55B | 7.96B |
| Net Income | 3.08B | 3.11B | 3.16B | 2.95B | 2.93B |
Balance Sheet | |||||
| Total Assets | 118.45B | 118.50B | 118.54B | 121.00B | 114.83B |
| Cash, Cash Equivalents and Short-Term Investments | 28.00M | 30.00M | 21.00M | 325.00M | 34.00M |
| Total Debt | 50.56B | 50.86B | 50.21B | 51.21B | 46.63B |
| Total Liabilities | 68.36B | 69.21B | 69.56B | 71.67B | 66.44B |
| Stockholders Equity | 49.31B | 49.29B | 48.98B | 49.33B | 48.39B |
Cash Flow | |||||
| Free Cash Flow | 3.39B | 2.38B | 3.79B | -993.00M | 1.36B |
| Operating Cash Flow | 7.13B | 6.38B | 8.07B | 4.77B | 6.19B |
| Investing Cash Flow | -3.78B | -3.99B | -4.38B | -6.08B | -5.03B |
| Financing Cash Flow | -3.31B | -2.38B | -4.04B | 1.61B | -1.19B |
HK Electric Investments & HK Electric Investments Technical Analysis
Positive
6.41
Price Trends
6.59
Negative
6.40
Positive
6.12
Positive
Market Momentum
-0.04
Negative
46.30
Neutral
28.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2638, the sentiment is Positive. The current price of 6.41 is above the 20-day moving average (MA) of 6.37, below the 50-day MA of 6.59, and above the 200-day MA of 6.12, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2638.
HK Electric Investments & HK Electric Investments Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$190.49B | 16.48 | 9.82% | 4.54% | -3.24% | -10.85% | |
70 Outperform | HK$71.19B | 12.01 | 12.60% | 4.30% | 1.89% | -1.58% | |
68 Neutral | HK$102.82B | 6.06 | 12.76% | 5.89% | -3.11% | -5.45% | |
68 Neutral | HK$138.63B | 18.85 | 6.94% | 5.15% | -16.10% | 1.91% | |
66 Neutral | HK$56.73B | 18.09 | 5.56% | 5.08% | 0.56% | 1.22% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$135.47B | 23.00 | 9.73% | 4.94% | -2.07% | -0.42% |
* Utilities Sector Average
HK:2638
HK Electric Investments & HK Electric Investments
6.44
1.29
25.02%
HK:0002
CLP Holdings
75.50
11.95
18.80%
HK:0836
China Resources Power Holdings Co
19.44
1.46
8.12%
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65.25
16.85
34.83%
HK:0003
Hong Kong & China Gas Co
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0.63
9.53%
HK:2688
ENN Energy Holdings
62.00
3.38
5.76%
HK Electric Investments & HK Electric Investments Corporate Events
HK Electric Sets 2026 AGM to Approve Director Fees and New Issuance Mandate
Apr 20, 2026
HK Electric Investments and HK Electric Investments Limited have convened their 2026 annual general meeting as a hybrid event in Hong Kong and online, reflecting continued use of mixed in-person and virtual formats for unitholder and shareholder e...
HK Electric Posts Stable 2025 Results as Decarbonisation and Grid Upgrades Advance
Mar 17, 2026
HK Electric Investments reported stable 2025 financial results, with EBITDA edging up to HK$8,749 million and profit attributable to stapled unitholders rising to HK$3,149 million, while maintaining a total annual distribution of HK32.03 cents per...
HK Electric Announces Final 2025 Distribution for Stapled Unit Holders
Mar 17, 2026
HK Electric Investments and HK Electric Investments Limited have declared a final ordinary cash distribution of HKD 0.1609 per share stapled unit for the financial year ended 31 December 2025, reinforcing their role as an income-focused utility in...
HK Electric Sets March 2026 Board Meetings to Approve 2025 Results and Distribution
Mar 4, 2026
HK Electric Investments and HK Electric Investments Limited have scheduled board meetings for 17 March 2026 to review the audited annual results of the trust, the listed company, their subsidiaries and the trustee-manager for the financial year en...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.