SEHK:2

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has CLP Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.8%

2

10.5%

HK Electric Utilities

2.7%

HK Market


1 Year Return

-12.7%

2

-12.9%

HK Electric Utilities

-19.8%

HK Market

Return vs Industry: 2 matched the Hong Kong Electric Utilities industry which returned -12.9% over the past year.

Return vs Market: 2 exceeded the Hong Kong Market which returned -19.8% over the past year.


Shareholder returns

2IndustryMarket
7 Day11.8%10.5%2.7%
30 Day-3.0%-7.2%-7.2%
90 Day-4.6%-7.7%-12.1%
1 Year-9.4%-12.7%-9.3%-12.9%-16.9%-19.8%
3 Year6.4%-4.4%2.7%-13.0%0.9%-9.3%
5 Year38.4%15.2%14.4%-12.0%-12.6%-26.7%

Price Volatility Vs. Market

How volatile is CLP Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CLP Holdings undervalued compared to its fair value and its price relative to the market?

42.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2 (HK$78.65) is trading above our estimate of fair value (HK$71.51)

Significantly Below Fair Value: 2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2 is poor value based on its PE Ratio (42.7x) compared to the Electric Utilities industry average (15.1x).

PE vs Market: 2 is poor value based on its PE Ratio (42.7x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: 2 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 2 is overvalued based on its PB Ratio (1.8x) compared to the HK Electric Utilities industry average (1.2x).


Next Steps

Future Growth

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

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2's forecast earnings growth (24.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 2's earnings (24.8% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2's revenue (2.8% per year) is forecast to grow slower than the Hong Kong market (9.8% per year).

High Growth Revenue: 2's revenue (2.8% 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%).


Next Steps

Past Performance

How has CLP Holdings performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2 has a large one-off loss of HK$6.4B impacting its December 31 2019 financial results.

Growing Profit Margin: 2's current net profit margins (5.4%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: 2's earnings have declined by -8.4% per year over the past 5 years.

Accelerating Growth: 2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2 had negative earnings growth (-65.6%) over the past year, making it difficult to compare to the Electric Utilities industry average (-6.6%).


Return on Equity

High ROE: 2's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is CLP Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2's short term assets (HK$28.8B) do not cover its short term liabilities (HK$40.5B).

Long Term Liabilities: 2's short term assets (HK$28.8B) do not cover its long term liabilities (HK$61.8B).


Debt to Equity History and Analysis

Debt Level: 2's debt to equity ratio (44.7%) is considered high.

Reducing Debt: 2's debt to equity ratio has reduced from 73.3% to 44.7% over the past 5 years.

Debt Coverage: 2's debt is well covered by operating cash flow (40%).

Interest Coverage: 2's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2's dividend (3.92%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.66%).

High Dividend: 2's dividend (3.92%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.15%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (167.1%), 2's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2's dividends in 3 years are forecast to be covered by earnings (67.8% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Richard Kendall Lancaster (57yo)

6.58s

Tenure

HK$21,400,000

Compensation

Mr. Richard Kendall Lancaster, BE, has been the Chief Executive Officer at CLP Holdings Ltd., since September 30, 2013. Mr. Lancaster served as the Managing Director of CLP Power Hong Kong Limited, a Hong  ...


CEO Compensation Analysis

Compensation vs Market: Richard Kendall's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD836.95K).

Compensation vs Earnings: Richard Kendall's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Smales
Chief Operating Officer0.50yrHK$3.20mno data
David John Simmonds
Chief Administrative Officer6.58yrsHK$15.40mno data
Wai Yan Chong
Chief Corporate Development Officer7.58yrsHK$15.20mno data
Eileen Burnett-Kant
Chief Human Resources Officer0.58yrHK$3.80mno data
Rajiv Ranjan Mishra
Managing Director of India14.75yrsHK$11.10mno data
Siu Hung Chan
Managing Director of Chinano dataHK$12.80mno data
Richard Kendall Lancaster
CEO & Executive Director6.58yrsHK$21.40m0.000020% HK$40.3k
Geert Herman Peeters
CFO & Executive Director4.25yrsHK$13.90mno data
Angus Guthrie
Director of Investor Relationsno datano datano data
Kenneth Oberg
Managing Director of CLP Power Internationalno datano datano data

6.6yrs

Average Tenure

55yo

Average Age

Experienced Management: 2's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Kendall Lancaster
CEO & Executive Director6.58yrsHK$21.40m0.000020% HK$40.3k
Geert Herman Peeters
CFO & Executive Director4.25yrsHK$13.90mno data
Michael David Kadoorie
Non-Executive Chairman22.5yrsHK$803.69k0.051% HK$103.8m
William Elkin Mocatta
Vice Chairman21.25yrsHK$1.16m0.016% HK$31.9m
Vernon Francis Moore
Independent Non-Executive Director22.5yrsHK$1.47mno data
John Andrew Harry Leigh
Non-Executive Director22.5yrsHK$564.97k0.0057% HK$11.6m
Andrew Clifford Winawer Brandler
Non-Executive Director19.92yrsHK$967.89k0.00042% HK$846.8k
Siu Mai Yuen So
Group Director & Vice Chairman of CLP Power Hong Kong Limited10.25yrsHK$13.50mno data
Hoi-Chuen Cheng
Independent Non-Executive Director8.67yrsHK$993.81kno data
Nicholas Charles Allen
Independent Non-Executive Director10.92yrsHK$1.42m0.0011% HK$2.2m

15.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 2's board of directors are seasoned and experienced ( 15.4 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CLP Holdings Limited
  • Ticker: 2
  • Exchange: SEHK
  • Founded: 1901
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: HK$201.611b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLPH.YOTCPK (Pink Sheets LLC)ADR EACH REP 1 HKD5 LEVEL1(MGT)USUSDJan 1985
CLP1DB (Deutsche Boerse AG)ADR EACH REP 1 HKD5 LEVEL1(MGT)DEEURJan 1985
CLPH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1998
2SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1998
CLPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1998
2SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1998
2SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1998

Biography

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, wind, hydro, solar, and oil sources. It serves 5.11 million retail customers in Hong Kong and Australia. The company is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. It has approximately 15,900 kilometers of transmission and high voltage distribution lines. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 12:44
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.