Power Assets Holdings (0006) AI Stock Analysis

• Market Cap: $106.66B
• Dividend Yield: 5.53%
• Average Volume (3M): 3.12M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.08
• 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: 1.03
• Enterprise Value/Revenue: 110.94
• Enterprise Value/Gross Profit: 110.94
• Enterprise Value/Ebitda: 289.51
• 1Y Price Target: $58.76
• Price Target Upside: 15.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: HK$53.00 ▲(4.02% 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.

Power Assets Holdings Business Overview & Revenue Model

Company Description

Power Assets Holdings Limited (stock code: 0006) is an investment holding company based in Hong Kong, primarily engaged in the development and operation of utility and energy-related businesses. The company's core sectors include electricity generation, gas distribution, and renewable energy, with significant investments in power projects across Hong Kong, the United Kingdom, Australia, and other regions. Power Assets focuses on providing reliable energy solutions and developing sustainable energy initiatives to meet growing global energy demands.

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: 50.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 50.95 is above the 20-day moving average (MA) of 50.02, above the 50-day MA of 50.16, and above the 200-day MA of 49.15, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 87.59 is Negative, 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	$98.16B	7.46	13.23%	5.43%	1.42%	-10.32%
1038	72 Outperform	$121.82B	15.76	6.64%	4.89%	-10.67%	0.65%
0002	68 Neutral	HK$171.04B	14.98	10.96%	4.78%	2.02%	51.27%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0003	65 Neutral	$135.66B	24.07	9.86%	4.64%	0.36%	2.55%
0902	63 Neutral	$128.63B	10.47	8.00%	4.46%	-3.78%	34.93%
0006	62 Neutral	$106.66B	17.33	7.05%	5.53%	-24.63%	1.74%

Power Assets Holdings Corporate Events

Power Assets Holdings Reports Stable 2025 Interim Results

Power Assets Holdings Limited is a diversified energy company operating primarily in regulated markets, with a strong focus on sustainable energy solutions across its international portfolio. The company reported a stable financial performance for the first half of 2025, with profits increasing slightly to HK$3,042 million compared to the previous year. This stability is attributed to its high-quality energy assets and supportive regulatory frameworks. Key financial highlights include a declared interim dividend of HK$0.78 per share and a strong performance from its UK portfolio, which saw an 11% growth. The company’s Australian portfolio faced challenges due to currency fluctuations and lower market prices, while its Canadian and other international investments provided steady returns. Power Assets Holdings remains committed to sustainability, with ongoing projects aimed at reducing carbon emissions and enhancing renewable energy capabilities. Looking ahead, the company plans to leverage its strong financial foundation to explore global investment opportunities in mature energy markets, ensuring predictable returns and continued growth.

Power Assets Holdings Reports Stable 2025 Interim Results Amid Global Volatility

Power Assets Holdings Limited reported a stable financial performance for the first half of 2025, with a 1% increase in unaudited profits to HK$3,042 million. The company maintains a strong financial foundation with low gearing, positioning it well for future growth. The UK portfolio, the largest market for Power Assets, showed strong performance with an 11% growth, driven by operational excellence and safety standards. The company is also actively involved in green projects to contribute to the UK’s net zero targets. In Australia, profits declined due to currency exchange rates and contract expirations. Power Assets is exploring opportunities to enhance and expand its renewable energy portfolio.

The most recent analyst rating on (HK:0006) stock is a Buy with a HK$58.00 price target. To see the full list of analyst forecasts on Power Assets Holdings stock, see the HK:0006 Stock Forecast page.

Power Assets Holdings to Review Interim Results and Dividend Plans

Power Assets Holdings Limited has announced that its board of directors will meet on August 13, 2025, to review the interim financial results for the first half of the year and discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (HK:0006) stock is a Hold with a HK$48.00 price target. To see the full list of analyst forecasts on Power Assets Holdings stock, see the HK:0006 Stock Forecast page.