Is There An Opportunity With CLP Holdings Limited's (HKG:2) 24% Undervaluation?
Apr 16
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Hong Kong (HSI) Utilities Sector Analysis
UpdatedApr 17, 2025
DataAggregated Company Financials
Companies60
- 7D3.4%
- 3M2.5%
- 1Y4.5%
- YTD-1.7%
CLP Holdings is up 5.1%, leading the way for the Utilities industry, which has gained 3.4%. In the last 12 months, the industry was up 4.5%. As for the next few years, earnings are expected to grow by 7.7% per annum.
Sector Valuation and Performance
Has the Hong Kong Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 17 Apr 2025 | HK$1.7t | HK$1.8t | HK$132.6b | 8.4x | 12.6x | 0.9x |
| Sat, 15 Mar 2025 | HK$1.7t | HK$1.8t | HK$124.2b | 9.1x | 13.6x | 0.9x |
| Mon, 10 Feb 2025 | HK$1.6t | HK$1.8t | HK$119.6b | 8.3x | 13.7x | 0.9x |
| Wed, 08 Jan 2025 | HK$1.7t | HK$1.8t | HK$119.2b | 8.3x | 14x | 0.9x |
| Fri, 06 Dec 2024 | HK$1.7t | HK$1.8t | HK$119.7b | 8.3x | 14x | 0.9x |
| Sun, 03 Nov 2024 | HK$1.7t | HK$1.8t | HK$120.9b | 8.7x | 14.3x | 0.9x |
| Tue, 01 Oct 2024 | HK$1.8t | HK$1.8t | HK$125.3b | 9.3x | 14.2x | 1x |
| Thu, 29 Aug 2024 | HK$1.8t | HK$1.8t | HK$126.8b | 8.5x | 13.8x | 1x |
| Sat, 27 Jul 2024 | HK$1.8t | HK$1.8t | HK$124.8b | 8.8x | 14.1x | 1x |
| Mon, 24 Jun 2024 | HK$1.7t | HK$1.8t | HK$125.2b | 9.5x | 13.8x | 0.9x |
| Wed, 22 May 2024 | HK$1.8t | HK$1.8t | HK$125.4b | 9.5x | 14x | 1x |
| Fri, 19 Apr 2024 | HK$1.6t | HK$1.8t | HK$121.3b | 8.6x | 13.5x | 0.9x |
| Sun, 17 Mar 2024 | HK$1.7t | HK$1.8t | HK$120.1b | 8.9x | 13.9x | 0.9x |
| Tue, 13 Feb 2024 | HK$1.6t | HK$1.8t | HK$124.8b | 8x | 12.6x | 0.9x |
| Thu, 11 Jan 2024 | HK$1.6t | HK$1.8t | HK$125.0b | 8.4x | 12.6x | 0.9x |
| Sat, 09 Dec 2023 | HK$1.5t | HK$1.8t | HK$125.0b | 7.7x | 11.9x | 0.8x |
| Mon, 06 Nov 2023 | HK$1.5t | HK$1.8t | HK$125.9b | 8x | 11.9x | 0.8x |
| Wed, 04 Oct 2023 | HK$1.5t | HK$1.8t | HK$115.0b | 8x | 13.2x | 0.8x |
| Fri, 01 Sep 2023 | HK$1.5t | HK$1.8t | HK$115.1b | 8.4x | 13.3x | 0.8x |
| Sun, 30 Jul 2023 | HK$1.7t | HK$1.8t | HK$98.8b | 9.5x | 17x | 0.9x |
| Tue, 27 Jun 2023 | HK$1.6t | HK$1.8t | HK$94.7b | 9.4x | 17.1x | 0.9x |
| Thu, 25 May 2023 | HK$1.7t | HK$1.8t | HK$95.5b | 9.7x | 17.7x | 0.9x |
| Sat, 22 Apr 2023 | HK$1.7t | HK$1.9t | HK$91.5b | 9.6x | 18.3x | 0.9x |
| Mon, 20 Mar 2023 | HK$1.7t | HK$1.8t | HK$59.6b | 9x | 28.6x | 0.9x |
| Wed, 15 Feb 2023 | HK$1.8t | HK$1.8t | HK$59.1b | 9x | 29.8x | 1x |
| Fri, 13 Jan 2023 | HK$1.7t | HK$1.8t | HK$59.1b | 9x | 29.1x | 0.9x |
| Sun, 11 Dec 2022 | HK$1.6t | HK$1.8t | HK$59.2b | 8.4x | 27.3x | 0.9x |
| Tue, 08 Nov 2022 | HK$1.5t | HK$1.7t | HK$60.0b | 8.1x | 24.3x | 0.8x |
| Thu, 06 Oct 2022 | HK$1.6t | HK$1.7t | HK$54.6b | 8.1x | 28.9x | 0.9x |
| Sat, 03 Sep 2022 | HK$1.8t | HK$1.8t | HK$54.0b | 8.4x | 32.7x | 1x |
| Mon, 01 Aug 2022 | HK$1.8t | HK$1.7t | HK$73.1b | 8.5x | 24.8x | 1.1x |
| Wed, 29 Jun 2022 | HK$1.9t | HK$1.7t | HK$73.2b | 8.5x | 25.8x | 1.1x |
| Fri, 27 May 2022 | HK$1.9t | HK$1.7t | HK$75.0b | 8.4x | 25.4x | 1.1x |
| Sun, 24 Apr 2022 | HK$1.9t | HK$1.7t | HK$84.8b | 8.6x | 22.2x | 1.1x |
Price to Earnings Ratio
22.2x
Current Industry PE
- Investors are pessimistic on the Hong Kong Utilities industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 12.6x which is lower than its 3-year average PE of 18.3x.
- The industry is trading close to its 3-year average PS ratio of 0.93x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have grown 16% per year over the last three years.
- Revenues for these companies have grown 2.1% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Hong Kong Utilities sector?
| HK Market | 4.01% | |
| Utilities | 3.43% | |
| Renewable Energy | 4.05% | |
| Electric Utilities | 3.81% | |
| Gas Utilities | 2.89% | |
| Other Utilities | 0.54% | |
| Water Utilities | -1.33% | |
Industry PE
- Investors are most optimistic about the Electric Utilities industry even though it's trading below its 3-year average PE ratio of 18.7x.
- Analysts are expecting annual earnings growth of 4.9%, which is lower than the prior year's growth of 10.0% per year.
- Investors are most pessimistic about the Other Utilities industry, which is trading close to its 3-year average of 3.7x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 10.0% over the next 5 years.
- This is better than its past earnings growth rate of 2.3% per year.
- In contrast, the Water Utilities industry is expected to see its earnings grow by 2.7% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 3 Hong Kong and China Gas | HK$6.90 | 4.7% +HK$5.8b | 21.3% | PE22.5x | |
| 2 CLP Holdings | HK$64.75 | 3.3% +HK$5.2b | 7.9% | PE13.9x | |
| 902 Huaneng Power International | HK$4.70 | 6.8% +HK$4.7b | -5.4% | PE9.6x | |
| 1038 CK Infrastructure Holdings | HK$49.30 | 3.9% +HK$4.7b | 15.9% | PE15.3x | |
| 6 Power Assets Holdings | HK$49.15 | 4.6% +HK$4.6b | 14.0% | PE17.1x |
