CLP Holdings (0002) AI Stock Analysis

• Market Cap: $166.24B
• Dividend Yield: 4.84%
• Average Volume (3M): 3.90M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.20
• Revenue Growth: 2.02%
• EPS Growth: 51.27%
• Country: HK
• Employees: 7,069
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 2.06
• Shares Outstanding: 2,526,450,700
• 10 Day Avg. Volume: 2,714,626
• 30 Day Avg. Volume: 3,899,401
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 11.54
• Enterprise Value/Ebitda: 10.00
• 1Y Price Target: $71.48
• Price Target Upside: 9.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: HK$71.00 ▲(9.06% Upside)

CLP Holdings' overall stock score is driven by solid financial performance and attractive valuation. The company's strong revenue and profit growth, coupled with a reasonable P/E ratio and high dividend yield, are significant strengths. However, increased leverage, declining free cash flow, and challenges in the Mainland and Australia pose risks. Technical indicators suggest a neutral trend, and the earnings call reflects a balanced sentiment with both achievements and challenges.

Positive Factors

Negative Factors

CLP Holdings Business Overview & Revenue Model

Company Description

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It serves 5.15 million retail customers in Hong Kong and Australia. The company is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. It has generating capacity of 20,018 equity megawatts; and 16,834 kilometers of transmission and high voltage distribution lines. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.

How the Company Makes Money

CLP Holdings generates revenue primarily through its electricity generation, transmission, and distribution operations across multiple regions. In Hong Kong, the company operates under a regulated Scheme of Control Agreement, which provides a stable revenue base through predictable returns linked to its investments in the electricity infrastructure. Additionally, CLP Holdings has significant operations in Australia through its subsidiary EnergyAustralia, which supplies electricity and gas to retail and business customers. The company also earns income from its investments in power generation facilities in Mainland China, India, and Southeast Asia, focusing on both conventional and renewable energy sources. Strategic partnerships and joint ventures in these regions enhance its revenue streams, while investments in renewable energy projects align with global sustainability trends and provide long-term growth opportunities.

CLP Holdings Financial Statement Overview

Summary

CLP Holdings demonstrates solid revenue and profit growth with improved profitability margins. However, increased leverage and a decline in free cash flow could pose risks if not managed prudently. The company benefits from a strong equity base and good cash generation capabilities, but monitoring cash flow trends and debt levels is essential for future stability.

Income Statement

CLP Holdings showed robust revenue growth of 4.35% from 2023 to 2024. The gross profit margin improved slightly to 32.25%, and the net profit margin increased significantly to 13.06%, indicating enhanced profitability. The EBIT margin rose to 16.39%, and the EBITDA margin was strong at 29.42%. Overall, the company's income statement reflects positive growth and profitability trends, although the previous years showed volatility.

Balance Sheet

The debt-to-equity ratio increased to 0.63, reflecting higher leverage, which could indicate potential risks if not managed carefully. Return on equity (ROE) improved significantly to 11.41%, showcasing better utilization of equity to generate profits. The equity ratio remains stable at 44.52%, suggesting a solid capital structure. While leverage has increased, the company maintains a strong equity base.

Cash Flow

The free cash flow decreased by 34.25% from 2023 to 2024. The operating cash flow to net income ratio is robust at 1.95, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio decreased to 0.58, showing reduced cash availability for reinvestment or debt reduction. Despite healthy operating cash flows, declining free cash flow may pose a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.96B	87.17B	100.66B	83.96B	79.59B
Gross Profit	29.33B	28.53B	8.18B	12.36B	14.84B
EBITDA	24.23B	21.07B	12.18B	22.13B	23.32B
Net Income	11.88B	6.79B	1.06B	8.63B	11.59B
Balance Sheet
Total Assets	233.71B	229.05B	236.03B	239.81B	234.23B
Cash, Cash Equivalents and Short-Term Investments	4.98B	5.19B	4.29B	8.26B	11.71B
Total Debt	65.30B	57.72B	64.06B	63.27B	59.65B
Total Liabilities	123.59B	116.67B	124.22B	116.99B	112.15B
Stockholders Equity	104.06B	106.22B	105.50B	113.03B	112.20B
Cash Flow
Free Cash Flow	6.84B	10.39B	-5.03B	3.02B	11.02B
Operating Cash Flow	23.14B	23.57B	10.19B	16.30B	22.06B
Investing Cash Flow	-16.22B	-9.47B	-17.31B	-14.10B	-12.09B
Financing Cash Flow	-7.04B	-13.14B	1.01B	-6.77B	-8.29B

CLP Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.10
• 50DMA: Negative
• 100DMA: Negative
• 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:0002, the sentiment is Negative. The current price of 65.1 is below the 20-day moving average (MA) of 65.24, below the 50-day MA of 65.78, and above the 200-day MA of 63.99, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 65.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0002.

CLP Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2638	74 Outperform	54.08B	17.09	6.31%	5.27%	2.58%	1.42%
0836	73 Outperform	94.58B	7.19	13.10%	5.74%	1.42%	-10.32%
0002	68 Neutral	$166.24B	14.56	10.96%	4.84%	2.02%	51.27%
1038	66 Neutral	127.43B	16.49	6.19%	4.86%	-10.67%	0.65%
0003	65 Neutral	130.99B	23.25	9.95%	5.01%	0.36%	2.55%
0006	58 Neutral	109.65B	17.81	7.03%	5.48%	-24.63%	1.74%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

CLP Holdings Corporate Events

CLP Holdings Declares Second Interim Dividend for 2025

CLP Holdings Limited has announced a second interim ordinary dividend of HKD 0.63 per share for the financial year ending December 31, 2025. The ex-dividend date is set for September 2, 2025, with the payment date scheduled for September 15, 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and maintaining a stable dividend policy.

The most recent analyst rating on (HK:0002) stock is a Buy with a HK$78.00 price target. To see the full list of analyst forecasts on CLP Holdings stock, see the HK:0002 Stock Forecast page.

CLP Holdings Reports Resilient Interim Results Amid Global Challenges

CLP Holdings reported a resilient performance for the first half of 2025 despite global market challenges, with total earnings of HK$5,624 million, slightly down from the previous year. The company declared a second interim dividend of HK$0.63 per share, maintaining its commitment to shareholders. In Hong Kong, CLP advanced its decarbonization efforts with initiatives like LNG bunkering and electric vehicle charging networks, while facing a challenging market environment on the Chinese Mainland and competitive pressures in Australia. These developments highlight CLP’s strategic focus on sustainability and operational excellence, reinforcing its position in the energy sector.

The most recent analyst rating on (HK:0002) stock is a Buy with a HK$78.00 price target. To see the full list of analyst forecasts on CLP Holdings stock, see the HK:0002 Stock Forecast page.

CLP Holdings to Review Interim Results and Dividend Declaration

CLP Holdings Limited has announced that its Board of Directors will meet on August 4, 2025, to consider the approval of the interim results for the first half of 2025 and the declaration of the second interim dividend for the year. This announcement is significant as it may impact the company’s financial performance and shareholder returns, reflecting its operational and strategic priorities in the energy sector.

The most recent analyst rating on (HK:0002) stock is a Buy with a HK$78.00 price target. To see the full list of analyst forecasts on CLP Holdings stock, see the HK:0002 Stock Forecast page.