CLP Holdings (SEHK:2) - Share price, News & Analysis

Q: What is the Fair Price of 2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2 (HK$66.8) is trading below our estimate of [[fair value]] (HK$154.76)

2 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	0/6
Financial Health	1/6
Dividends	3/6

2 Stock Overview

Rewards

Trading at 56.8% below our estimate of its fair value

Earnings are forecast to grow 14.42% per year

Risk Analysis

Dividend of 4.64% is not well covered by earnings or forecast to be in the next 3 years

Has a high level of debt

CLP Holdings Competitors

CK Infrastructure Holdings

SEHK:1038

HK$123.1b

Power Assets Holdings

SEHK:6

HK$105.8b

HK Electric Investments and HK Electric Investments

SEHK:2638

HK$62.9b

Hong Kong and China Gas

SEHK:3

HK$150.4b

Price History & Performance

Summary of all time highs, changes and price drops for CLP Holdings
Historical stock prices
Current Share Price	HK$66.80
52 Week High	HK$80.50
52 Week Low	HK$64.80
Beta	0.44
1 Month Change	0.75%
3 Month Change	-12.22%
1 Year Change	-13.75%
3 Year Change	-18.04%
5 Year Change	-19.81%
Change since IPO	98.91%

Recent News & Updates

Aug 10

CLP Holdings (HKG:2) Is Paying Out A Dividend Of HK$0.63

CLP Holdings Limited's ( HKG:2 ) investors are due to receive a payment of HK$0.63 per share on 15th of September. This...

Jul 12

CLP Holdings (HKG:2) Will Be Hoping To Turn Its Returns On Capital Around

To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications...

Shareholder Returns

	2	HK Electric Utilities	HK Market
7D	1.8%	0.1%	-0.6%
1Y	-13.8%	-5.8%	-23.8%

Return vs Industry: 2 underperformed the Hong Kong Electric Utilities industry which returned -5.8% over the past year.

Return vs Market: 2 exceeded the Hong Kong Market which returned -23.8% over the past year.

Price Volatility

Is 2's price volatile compared to industry and market?
2 volatility
2 Average Weekly Movement	2.7%
Electric Utilities Industry Average Movement	2.5%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.8%
10% least volatile stocks in HK Market	3.1%

Stable Share Price: 2 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1901	8,183	Richard Kendall Lancaster	https://www.clpgroup.com

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It serves 5.15 million retail customers in Hong Kong and Australia.

CLP Holdings Fundamentals Summary

How do CLP Holdings's earnings and revenue compare to its market cap?
2 fundamental statistics
Market Cap	HK$168.01b
Earnings (TTM)	-HK$979.00m
Revenue (TTM)	HK$90.82b

1.9x

P/S Ratio

-172.4x

P/E Ratio

Is 2 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2 income statement (TTM)
Revenue	HK$90.82b
Cost of Revenue	HK$77.70b
Gross Profit	HK$13.13b
Other Expenses	HK$14.11b
Earnings	-HK$979.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 17, 2022

Earnings per share (EPS)	-0.39
Gross Margin	14.45%
Net Profit Margin	-1.08%
Debt/Equity Ratio	54.6%

How did 2 perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

-800%

Payout Ratio

Does 2 pay a reliable dividends?

See 2 dividend history and benchmarks

When do you need to buy 2 by to receive an upcoming dividend?
CLP Holdings dividend dates
Ex Dividend Date	Sep 01 2022
Dividend Pay Date	Sep 15 2022
Days until Ex dividend	20 days
Days until Dividend pay date	34 days

Does 2 pay a reliable dividends?

See 2 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2. This is calculated by dividing 2's market cap by their current preferred multiple.
What is 2's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$168.01b

2 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.5x
Enterprise Value/EBITDA	29.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2's PS Ratio compare to its peers?

2 PS Ratio vs Peers

The above table shows the PS ratio for 2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	22.7x
1038 CK Infrastructure Holdings	17.3x	-0.1%	HK$123.1b
6 Power Assets Holdings	65.3x	0.1%	HK$105.8b
2638 HK Electric Investments and HK Electric Investments	5.8x	3.5%	HK$62.9b
3 Hong Kong and China Gas	2.8x	7.3%	HK$150.4b
2 CLP Holdings	1.9x	3.9%	HK$168.0b

Price-To-Sales vs Peers: 2 is good value based on its Price-To-Sales Ratio (1.9x) compared to the peer average (22.7x).

Price to Earnings Ratio vs Industry

How does 2's PE Ratio compare vs other companies in the Asian Electric Utilities Industry?

Price-To-Sales vs Industry: 2 is expensive based on its Price-To-Sales Ratio (1.9x) compared to the Hong Kong Electric Utilities industry average (1.8x)

Price to Sales Ratio vs Fair Ratio

What is 2's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.9x
Fair PS Ratio	0.8x

Price-To-Sales vs Fair Ratio: 2 is expensive based on its Price-To-Sales Ratio (1.9x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

Share Price vs Fair Value

What is the Fair Price of 2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2 (HK$66.8) is trading below our estimate of fair value (HK$154.76)

Significantly Below Fair Value: 2 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is CLP Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 2 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2 is expected to become profitable in the next 3 years.

Revenue vs Market: 2's revenue (3.9% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 2's revenue (3.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2's Return on Equity is forecast to be low in 3 years time (10.9%).

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Past Performance

How has CLP Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-18.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2 is currently unprofitable.

Growing Profit Margin: 2 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 2 is unprofitable, and losses have increased over the past 5 years at a rate of 18.1% per year.

Accelerating Growth: Unable to compare 2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2 is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (5.2%).

Return on Equity

High ROE: 2 has a negative Return on Equity (-0.51%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is CLP Holdings's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2's short term assets (HK$49.9B) do not cover its short term liabilities (HK$64.3B).

Long Term Liabilities: 2's short term assets (HK$49.9B) do not cover its long term liabilities (HK$62.7B).

Debt to Equity History and Analysis

Debt Level: 2's net debt to equity ratio (43.9%) is considered high.

Reducing Debt: 2's debt to equity ratio has increased from 48.3% to 54.6% over the past 5 years.

Debt Coverage: 2's debt is well covered by operating cash flow (27.6%).

Interest Coverage: Insufficient data to determine if 2's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is CLP Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.64%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 2's dividend (4.64%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.86%).

High Dividend: 2's dividend (4.64%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.39%).

Stability and Growth of Payments

Stable Dividend: 2's dividends per share have been stable in the past 10 years.

Growing Dividend: 2's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: 2 is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (174.1%), 2's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure

CEO

Richard Kendall Lancaster (60 yo)

8.92yrs

Tenure

HK$27,900,000

Compensation

Mr. Richard Kendall Lancaster, BE, serves as Director at Castle Peak Power Company Limited since 2005. He has been the Chief Executive Officer at CLP Holdings Ltd., since September 30, 2013. Mr. Lancaster...

CEO Compensation Analysis

Compensation vs Market: Richard Kendall's total compensation ($USD3.56M) is above average for companies of similar size in the Hong Kong market ($USD996.64K).

Compensation vs Earnings: Richard Kendall's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: 2's management team is seasoned and experienced (8.1 years average tenure).

Board Members

Experienced Board: 2's board of directors are seasoned and experienced ( 12.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31