Want to see HK:2638 full AI Analyst Report?
Top Page
HK Electric Investments & HK Electric Investments
(2638)
Select Model
Select Model
Rating:70Outperform
Price Target:
HK$7.00
â–²(10.76% Upside)
Action:Upgraded
Date:08/04/26
The score is primarily supported by solid financial performance with consistently strong margins and stable earnings power, typical for a regulated utility. Offsetting this are leverage near parity with equity and uneven free cash flow from capex cycles, which reduce flexibility. Technically, momentum is constructive with the price above major moving averages, while valuation is mixed: a strong ~5% dividend yield is balanced by a mid-range P/E around 18.5.
Positive Factors
Regulated monopoly service area
Operating as the regulated supplier for Hong Kong Island and Lamma Island gives durable demand visibility and limited direct competition. The regulated framework supports predictable revenue streams and capital recovery over multi-year cycles, underpinning steady earnings and planning for long-term infrastructure investment.
Negative Factors
Meaningful leverage (D/E ~1.0)
Debt near parity with equity increases sensitivity to interest rates and refinancing cycles and constrains flexibility for discretionary investments or large one-off expenditures. In a capital-intensive utility, this leverage profile limits room to accelerate investment or absorb shocks without raising rates, issuing debt, or altering dividend policy.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated monopoly service area
Operating as the regulated supplier for Hong Kong Island and Lamma Island gives durable demand visibility and limited direct competition. The regulated framework supports predictable revenue streams and capital recovery over multi-year cycles, underpinning steady earnings and planning for long-term infrastructure investment.
Read all positive factors
HK Electric Investments & HK Electric Investments (2638) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$56.20B
Dividend Yield5.07%
Average Volume (3M)2.37M
Price to Earnings (P/E)18.0
Beta (1Y)0.13
Revenue Growth3.69%
EPS Growth-0.45%
CountryHK
Employees1,622
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.35
Shares Outstanding8,836,200,000
10 Day Avg. Volume2,079,742
30 Day Avg. Volume2,367,295
Financial Highlights & Ratios
PEG Ratio6.12
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$7.04Price Target Upside11.31% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.38
Revenue Forecast (FY)HK$12.80B
HK Electric Investments & HK Electric Investments Business Overview & Revenue Model
Company Description
Operating as an investment holding firm, HK Electric Investments and HK Electric Investments Limited is responsible for the generation, transmission, and distribution of electrical power throughout Hong Kong Island and Lamma Island. By December 31...
How the Company Makes Money
The company makes money primarily by providing regulated electricity supply services within its service territory. Revenue is mainly earned from selling electricity to end customers (residential, commercial, and industrial) based on metered consum...
HK Electric Investments & HK Electric Investments Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.50B | 12.13B | 12.06B | 11.41B | 10.79B | 11.34B |
| Gross Profit | 6.24B | 6.08B | 6.46B | 6.02B | 5.43B | 5.85B |
| EBITDA | 8.81B | 8.52B | 8.63B | 8.08B | 7.55B | 7.96B |
| Net Income | 3.37B | 3.08B | 3.11B | 3.16B | 2.95B | 2.93B |
Balance Sheet | ||||||
| Total Assets | 119.33B | 118.45B | 118.50B | 118.54B | 121.00B | 114.83B |
| Cash, Cash Equivalents and Short-Term Investments | 51.00M | 28.00M | 30.00M | 21.00M | 325.00M | 34.00M |
| Total Debt | 51.17B | 50.56B | 50.86B | 50.21B | 51.21B | 46.63B |
| Total Liabilities | 70.21B | 68.36B | 69.21B | 69.56B | 71.67B | 66.44B |
| Stockholders Equity | 49.13B | 49.31B | 49.29B | 48.98B | 49.33B | 48.39B |
Cash Flow | ||||||
| Free Cash Flow | 3.19B | 3.39B | 2.38B | 3.79B | -993.00M | 1.36B |
| Operating Cash Flow | 6.99B | 7.13B | 6.38B | 8.07B | 4.77B | 6.19B |
| Investing Cash Flow | -3.85B | -3.78B | -3.99B | -4.38B | -6.08B | -5.03B |
| Financing Cash Flow | -3.13B | -3.31B | -2.38B | -4.04B | 1.61B | -1.19B |
HK Electric Investments & HK Electric Investments Technical Analysis
Positive
6.32
Price Trends
6.27
Positive
6.24
Positive
6.24
Positive
Market Momentum
0.01
Positive
58.50
Neutral
80.95
Negative
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 6.32 is below the 20-day moving average (MA) of 6.33, above the 50-day MA of 6.27, and above the 200-day MA of 6.24, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$56.20B | 18.04 | 6.85% | 5.07% | 3.69% | -0.45% | |
69 Neutral | HK$200.47B | 18.30 | 10.14% | 4.08% | -1.91% | -5.03% | |
67 Neutral | HK$57.02B | 7.45 | 12.80% | 6.23% | 5.69% | 8.67% | |
66 Neutral | HK$97.38B | 7.34 | 11.72% | 5.81% | 2.19% | 1.10% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$130.32B | 7.29 | 18.47% | 4.61% | -12.24% | 190.79% | |
59 Neutral | HK$136.22B | 20.51 | 10.65% | 4.87% | 1.53% | 12.95% |
* Utilities Sector Average
HK:2638
HK Electric Investments & HK Electric Investments
6.32
0.47
8.12%
HK:0002
CLP Holdings
78.50
15.50
24.61%
HK:0836
China Resources Power Holdings Co
18.78
1.18
6.70%
HK:0006
Power Assets Holdings
61.20
12.30
25.16%
HK:0003
Hong Kong & China Gas Co
7.18
0.43
6.37%
HK:2688
ENN Energy Holdings
48.14
-14.67
-23.35%
HK Electric Investments & HK Electric Investments Corporate Events
HK Electric Sets August Board Meeting to Review Interim Results and Distribution
Jul 29, 2026
HK Electric Investments and HK Electric Investments Limited have scheduled board meetings for 11 August 2026 to review the interim results of the trust, the company, their subsidiaries and the trustee-manager for the six months ended 30 June 2026....
HK Electric Investors Approve All AGM Resolutions, Re-elect Board and Reappoint Auditor
May 20, 2026
HK Electric Investments HK Electric Investments Limited announced that all resolutions put to unitholders and shareholders at their combined annual general meeting on 20 May 2026 were approved by poll, including the adoption of the audited financ...
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.