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CLP Holdings SEHK:2 Stock Report

Last Price

HK$66.80

Market Cap

HK$168.0b

7D

1.8%

1Y

-13.8%

Updated

11 Aug, 2022

Data

Company Financials +
2 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends3/6

2 Stock Overview

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.

CLP Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CLP Holdings
Historical stock prices
Current Share PriceHK$66.80
52 Week HighHK$80.50
52 Week LowHK$64.80
Beta0.44
1 Month Change0.75%
3 Month Change-12.22%
1 Year Change-13.75%
3 Year Change-18.04%
5 Year Change-19.81%
Change since IPO98.91%

Recent News & Updates

Aug 10
CLP Holdings (HKG:2) Is Paying Out A Dividend Of HK$0.63

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

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

2HK Electric UtilitiesHK Market
7D1.8%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 Movement2.7%
Electric Utilities Industry Average Movement2.5%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.1%

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

FoundedEmployeesCEOWebsite
19018,183Richard Kendall Lancasterhttps://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 CapHK$168.01b
Earnings (TTM)-HK$979.00m
Revenue (TTM)HK$90.82b

1.9x

P/S Ratio

-172.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2 income statement (TTM)
RevenueHK$90.82b
Cost of RevenueHK$77.70b
Gross ProfitHK$13.13b
Other ExpensesHK$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 Margin14.45%
Net Profit Margin-1.08%
Debt/Equity Ratio54.6%

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 DateSep 01 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend20 days
Days until Dividend pay date34 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.

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/Revenue2.5x
Enterprise Value/EBITDA29.9x
PEG Ration/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.
CompanyPSEstimated GrowthMarket Cap
Peer Average22.7x
1038 CK Infrastructure Holdings
17.3x-0.1%HK$123.1b
6 Power Assets Holdings
65.3x0.1%HK$105.8b
2638 HK Electric Investments and HK Electric Investments
5.8x3.5%HK$62.9b
3 Hong Kong and China Gas
2.8x7.3%HK$150.4b
2 CLP Holdings
1.9x3.9%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 Ratio1.9x
Fair PS Ratio0.8x

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.


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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

TodayAug 11 2022Ex Dividend DateSep 01 2022Dividend Pay DateSep 15 202214 days from Ex DividendBuy in the next 20 days to receive the upcoming dividend

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.


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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.


Top Shareholders

Company Information

CLP Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: CLP Holdings Limited
  • Ticker: 2
  • Exchange: SEHK
  • Founded: 1901
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: HK$168.009b
  • Shares outstanding: 2.53b
  • Website: https://www.clpgroup.com

Number of Employees


Location

  • CLP Holdings Limited
  • 8 Laguna Verde Avenue
  • Hung Hom
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.