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:69Neutral
Price Target:
HK$7.00
â–²(7.53% Upside)
Action:ReiteratedDate:10/09/25
HK Electric Investments scores well in financial performance due to strong revenue growth and operational efficiency. However, high leverage and cash flow challenges are notable risks. Technical analysis indicates a neutral to slightly bearish trend, while valuation is fair with an attractive dividend yield. These factors combine to provide a balanced outlook for the stock.
Positive Factors
Regulated utility framework
Operating under a regulated framework creates predictable cash flows and allowed returns tied to the regulated asset base. This structural model supports recovery of capex and fuel costs, enabling stable earnings and investment planning across a multi‑month horizon.
Negative Factors
Elevated leverage
A debt-to-equity ratio around 1.0 means material leverage typical for utilities but reduces financial flexibility. Over a medium horizon, higher debt raises refinancing and interest risk, constraining discretionary spending and increasing sensitivity to rate or credit conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility framework
Operating under a regulated framework creates predictable cash flows and allowed returns tied to the regulated asset base. This structural model supports recovery of capex and fuel costs, enabling stable earnings and investment planning across a multi‑month horizon.
Read all positive factors
HK Electric Investments & HK Electric Investments (2638) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$57.52B
Dividend Yield5.08%
Average Volume (3M)2.42M
Price to Earnings (P/E)18.1
Beta (1Y)0.14
Revenue Growth2.58%
EPS Growth1.42%
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 Ratio-5.42
Price to Book (P/B)0.95
Price to Sales (P/S)3.88
P/FCF Ratio19.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.29Price Target Upside11.95% 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
HK Electric Investments generates revenue primarily through the sale of electricity to its customers. The company's revenue model is based on a regulated tariff structure that allows it to charge customers for the electricity consumed, ensuring a ...
HK Electric Investments & HK Electric Investments Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.05B | 12.06B | 11.41B | 10.79B | 11.34B | 10.39B |
| Gross Profit | 6.34B | 6.46B | 6.02B | 5.43B | 5.85B | 5.05B |
| EBITDA | 8.63B | 8.63B | 8.08B | 7.55B | 7.96B | 7.13B |
| Net Income | 3.17B | 3.11B | 3.16B | 2.95B | 2.93B | 2.73B |
Balance Sheet | ||||||
| Total Assets | 118.63B | 118.50B | 118.54B | 121.00B | 114.83B | 111.57B |
| Cash, Cash Equivalents and Short-Term Investments | 45.00M | 30.00M | 21.00M | 325.00M | 34.00M | 52.00M |
| Total Debt | 51.39B | 50.86B | 50.21B | 51.21B | 46.63B | 44.89B |
| Total Liabilities | 70.11B | 69.21B | 69.56B | 71.67B | 66.44B | 63.82B |
| Stockholders Equity | 48.51B | 49.29B | 48.98B | 49.33B | 48.39B | 47.74B |
Cash Flow | ||||||
| Free Cash Flow | 2.31B | 2.38B | 3.79B | -993.00M | 1.36B | 1.13B |
| Operating Cash Flow | 5.88B | 6.38B | 8.07B | 4.77B | 6.19B | 5.94B |
| Investing Cash Flow | -3.55B | -3.99B | -4.38B | -6.08B | -5.03B | -5.05B |
| Financing Cash Flow | -2.34B | -2.38B | -4.04B | 1.61B | -1.19B | -1.10B |
HK Electric Investments & HK Electric Investments Technical Analysis
Negative
6.51
Price Trends
6.76
Negative
6.53
Negative
6.23
Positive
Market Momentum
-0.10
Positive
40.89
Neutral
57.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2638, the sentiment is Negative. The current price of 6.51 is below the 20-day moving average (MA) of 6.65, below the 50-day MA of 6.76, and above the 200-day MA of 6.23, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 57.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$188.22B | 16.48 | 9.82% | 4.54% | 2.02% | 51.27% | |
70 Outperform | HK$71.93B | 12.01 | 12.60% | 4.30% | -3.19% | -2.68% | |
69 Neutral | HK$57.52B | 18.09 | 5.56% | 5.08% | 2.58% | 1.42% | |
68 Neutral | HK$96.86B | 6.06 | 12.76% | 5.89% | 1.42% | -10.32% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$132.86B | 23.00 | 9.73% | 4.94% | 0.36% | 2.55% | |
62 Neutral | HK$133.62B | 18.85 | 6.94% | 5.15% | -24.63% | 1.74% |
* Utilities Sector Average
HK:2638
HK Electric Investments & HK Electric Investments
6.51
1.46
29.01%
HK:0002
CLP Holdings
74.50
15.15
25.52%
HK:0836
China Resources Power Holdings Co
18.71
1.89
11.23%
HK:0006
Power Assets Holdings
62.70
18.70
42.51%
HK:0003
Hong Kong & China Gas Co
7.12
0.94
15.21%
HK:2688
ENN Energy Holdings
63.70
6.84
12.03%
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.