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CLP Holdings
(0002)
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Rating:69Neutral
Price Target:
HK$84.00
â–²(6.53% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial performance consistent with a regulated utility (recovered profitability and manageable leverage) and a constructive earnings call featuring operating earnings growth, maintained dividends, and strong liquidity/funding progress. These positives are moderated by volatile free cash flow and recent gross margin compression, plus near-term operational headwinds (Australia competition/price pressure and higher China curtailment). Technical signals are mixed-to-neutral, and valuation is supported by the ~4.1% yield but tempered by a ~18.8 P/E.
Positive Factors
Strong regulated Hong Kong utility franchise
The Hong Kong business combines regulated earnings, essential electricity demand and exceptional network reliability. Growth from data centers and higher tariffs supports the core franchise and reinforces its long-term earnings resilience.
Negative Factors
Revenue stagnation and gross-margin compression
Broadly stable but declining revenue and volatile gross margins indicate that cost, pricing or business-mix pressures remain material. Sustained compression could reduce the benefit of regulated stability and constrain earnings growth if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong regulated Hong Kong utility franchise
The Hong Kong business combines regulated earnings, essential electricity demand and exceptional network reliability. Growth from data centers and higher tariffs supports the core franchise and reinforces its long-term earnings resilience.
Read all positive factors
CLP Holdings (0002) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$195.17B
Dividend Yield4.14%
Average Volume (3M)3.39M
Price to Earnings (P/E)18.0
Beta (1Y)0.06
Revenue Growth-1.91%
EPS Growth-5.03%
CountryHK
Employees8,539
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)4.29
Shares Outstanding2,526,450,700
10 Day Avg. Volume3,274,134
30 Day Avg. Volume3,387,325
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.63
Price to Sales (P/S)2.00
P/FCF Ratio23.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$83.36Price Target Upside5.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)4.69
Revenue Forecast (FY)HK$88.63B
CLP Holdings Business Overview & Revenue Model
Company Description
CLP Holdings Limited operates as an investment holding company primarily focused on the generation, transmission, and supply of electricity. Its widespread operations span Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. Th...
How the Company Makes Money
CLP Holdings makes money mainly by selling electricity and related utility services, with earnings coming from a mix of regulated utility returns and competitive/contracted power generation revenues.
1) Regulated electricity supply (core profit d...
CLP Holdings Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 12, 2026
Earnings Call Sentiment Positive
The call described a generally constructive operational and financial performance driven by a strong Hong Kong regulated business, disciplined capital allocation, portfolio actions (including Jhajjar divestment) and progress on funding and project pipelines. Key metrics (EBITDAF +9%, operating earnings +10%, total earnings +7%, Hong Kong sales +3.6%, data center demand ~+12%) and liquidity/credit strength support a positive view. Offsetting risks include a safety incident, China renewable curtailment and tariff pressure, near-term weakness and competitive pressures in Australia (softer wholesale prices, retail margin pressure), delayed renewable generation in parts of the portfolio, and a negative net cash flow for the half. On balance, highlights (resilient core earnings, funding milestones, project pipeline and cost programs) outweigh the lowlights, though notable near-term market headwinds remain.Positive Updates
Operating earnings growth
Operating earnings before fair value movements increased 10% year-on-year to over HKD 5.7 billion.
Negative Updates
Safety incident at Castle Peak
The group reported the loss of a contractor at Castle Peak Power Station in May; investigation actions are being implemented across the group despite an overall improvement in total recordable injury rate.
Read all updates
Q2-2026 Updates
Positive
Negative
Operating earnings growth
Operating earnings before fair value movements increased 10% year-on-year to over HKD 5.7 billion.
Read all positive updates
Company Guidance
The call reiterated near‑term guidance and targets across the portfolio, highlighting operating earnings before fair value up 10% to >HKD5.7bn (total earnings nearly HKD6bn) and EBITDAF +9% to HKD13.6bn, with capital investment of HKD7.3bn (HKD5.3bn to Hong Kong SoC, HKD1.6bn to Mainland renewables) against a HKD52.9bn five‑year SoC plan (including HKD2.5bn for initial Northern Metropolis works); interim dividends were maintained at HKD1.26 per share (second interim HKD0.63), cash inflows were HKD8.8bn versus outflows HKD11.8bn (HKD7bn CapEx, HKD4.9bn dividends), liquidity ~HKD20bn and net debt broadly in line with H1 2025 after refinancing ~HKD9bn and an AUD600m facility, plus CLP China’s inaugural RMB1bn Panda Bond. Management said Hong Kong reliability remains exceptional at 99.999% and average net tariff rose ~4%, China curtailment rose to ~15% (from 9% a year ago) but CLP China is targeting ~5GW by 2030 with ~1GW in execution and a HKD100m cost‑saving transformation, Apraava is targeting ~9GW non‑carbon by 2030 with ~HKD4.5bn of post‑period transmission awards and ~3.7m smart meters installed, and Energy Australia expects near‑term pressure on wholesale/retail but is advancing ~1GW of batteries/pump‑hydro (pipeline ~3GW by 2030), with transformation targeting ~HKD250m of enterprise cost savings by 2027; the Jhajjar divestment contributed ~HKD356m of items affecting comparability.CLP Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.02B | 88.02B | 90.96B | 87.17B | 100.66B | 83.96B |
| Gross Profit | 6.05B | 13.33B | 29.33B | 28.53B | 18.86B | 26.63B |
| EBITDA | 23.79B | 23.05B | 24.23B | 21.07B | 14.19B | 21.52B |
| Net Income | 11.05B | 10.67B | 11.88B | 6.79B | 1.06B | 8.63B |
Balance Sheet | ||||||
| Total Assets | 245.86B | 238.64B | 233.71B | 229.05B | 236.03B | 239.81B |
| Cash, Cash Equivalents and Short-Term Investments | 6.64B | 3.93B | 4.98B | 5.19B | 4.29B | 8.26B |
| Total Debt | 71.58B | 66.73B | 66.14B | 59.33B | 61.03B | 63.27B |
| Total Liabilities | 129.46B | 125.09B | 123.59B | 116.67B | 124.22B | 116.99B |
| Stockholders Equity | 110.46B | 107.61B | 104.06B | 106.22B | 109.39B | 116.92B |
Cash Flow | ||||||
| Free Cash Flow | 10.33B | 7.62B | 6.84B | 10.39B | -5.03B | 3.02B |
| Operating Cash Flow | 25.01B | 24.38B | 23.14B | 23.57B | 10.19B | 16.30B |
| Investing Cash Flow | -15.29B | -14.33B | -16.22B | -9.47B | -15.38B | -11.79B |
| Financing Cash Flow | -8.94B | -11.22B | -7.04B | -13.14B | -987.00M | -8.48B |
CLP Holdings Technical Analysis
Positive
78.85
Price Trends
76.58
Positive
75.22
Positive
72.51
Positive
Market Momentum
0.15
Positive
49.45
Neutral
25.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0002, the sentiment is Positive. The current price of 78.85 is above the 20-day moving average (MA) of 77.79, above the 50-day MA of 76.58, and above the 200-day MA of 72.51, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 25.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0002.
CLP Holdings Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$55.54B | 17.96 | 6.85% | 5.09% | 3.69% | -0.45% | |
69 Neutral | HK$195.17B | 18.01 | 10.14% | 4.14% | -1.91% | -5.03% | |
66 Neutral | HK$96.71B | 7.30 | 11.72% | 6.03% | 2.19% | 1.10% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$128.51B | 7.18 | 18.47% | 4.68% | -12.24% | 190.79% | |
63 Neutral | HK$235.34B | 22.24 | 8.00% | 3.19% | -18.88% | 6.88% | |
59 Neutral | HK$132.49B | 20.29 | 10.65% | 4.93% | 1.53% | 12.95% |
* Utilities Sector Average
HK:0002
CLP Holdings
77.25
15.35
24.81%
HK:1816
CGN Power Co
3.09
0.25
8.76%
HK:0836
China Resources Power Holdings Co
18.68
0.56
3.07%
HK:0006
Power Assets Holdings
60.30
11.47
23.49%
HK:2638
HK Electric Investments & HK Electric Investments
6.29
0.58
10.11%
HK:0003
Hong Kong & China Gas Co
7.10
0.43
6.38%
CLP Holdings Corporate Events
CLP Holdings Declares Second Interim Dividend for 2026
Aug 6, 2026
CLP Holdings has declared a second interim ordinary dividend of HKD 0.63 per share for the financial year ending 31 December 2026, covering the reporting period up to 30 June 2026. The dividend will be paid in Hong Kong dollars, with shareholders ...
CLP Holdings posts stronger interim earnings and reinforces Hong Kong-Mainland energy role
Aug 6, 2026
CLP Holdings reported a resilient first-half 2026 performance, with total earnings rising 6.6% to HK$5,997 million and operating earnings before fair value movements up 9.7% to HK$5,733 million, supported by steady Hong Kong operations, improved p...
CLP Board to Review Interim Results and Second Dividend in August
Jul 20, 2026
CLP Holdings has scheduled a board meeting for 6 August 2026 to consider approval of its interim results for the six months ended 30 June 2026. The board will also review the declaration of a second interim dividend for 2026, signaling continued a...
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.