SEHK:2638Electric Utilities
HK Electric Investments (SEHK:2638) Stock Grapples With Fuel Costs And Thinner Margins
HK Electric Investments came into this earnings season looking like a classic defensive utility, with the stock edging only about 1.3% higher over the past month and trading on a richer P/E multiple than many regional peers. The headline from the half year numbers is margin pressure. Trailing net profit margin sits at 25.2%, slightly below last year’s 26.3%, while debt remains poorly covered by operating cash flow. For a stock often treated as a steady income play, this mix of tight margins...