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CLP Holdings

SEHK:2
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2
SEHK
HK$227B
Market Cap
  1. Home
  2. HK
  3. Utilities
Company description

CLP Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The last earnings update was 13 days ago. More info.


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2 Share Price and Events
7 Day Returns
-0.5%
SEHK:2
-1.2%
HK Electric Utilities
1.7%
HK Market
1 Year Returns
11.9%
SEHK:2
-1%
HK Electric Utilities
-9.5%
HK Market
2 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CLP Holdings (2) -0.5% -4.3% 2.1% 11.9% 31.2% 55.1%
HK Electric Utilities -1.2% -1.3% 4.1% -1% -2.6% 26.5%
HK Market 1.7% 3.7% 14.2% -9.5% 29.3% 20.7%
1 Year Return vs Industry and Market
  • 2 outperformed the Electric Utilities industry which returned -1% over the past year.
  • 2 outperformed the Market in Hong Kong which returned -9.5% over the past year.
Price Volatility
2
Industry
5yr Volatility vs Market

2 Value

 Is CLP Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CLP Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CLP Holdings.

SEHK:2 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.24
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.241 (1 + (1- 25%) (24.9%))
0.521
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 6.65%)
7.32%

Discounted Cash Flow Calculation for SEHK:2 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CLP Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 7.32%)
2019 8,889.25 Analyst x4 8,282.71
2020 9,353.50 Analyst x6 8,120.61
2021 10,229.00 Analyst x1 8,274.75
2022 9,769.77 Est @ -4.49% 7,363.99
2023 9,521.45 Est @ -2.54% 6,687.12
2024 9,409.25 Est @ -1.18% 6,157.41
2025 9,388.18 Est @ -0.22% 5,724.43
2026 9,429.88 Est @ 0.44% 5,357.52
2027 9,515.86 Est @ 0.91% 5,037.47
2028 9,633.78 Est @ 1.24% 4,751.91
Present value of next 10 years cash flows HK$65,757.91
SEHK:2 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$9,633.78 × (1 + 2%) ÷ (7.32% – 2%)
HK$184,713.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$184,713.22 ÷ (1 + 7.32%)10
HK$91,110.82
SEHK:2 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$65,757.91 + HK$91,110.82
HK$156,868.73
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$156,868.73 / 2,526.45
HK$62.09
SEHK:2 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$62.09
Current discount Discount to share price of HK$90.65
= -1 x (HK$90.65 - HK$62.09) / HK$62.09
-46%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of CLP Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CLP Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CLP Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$5.36
SEHK:2 Share Price ** SEHK (2019-03-21) in HKD HK$90.65
Hong Kong Electric Utilities Industry PE Ratio Median Figure of 6 Publicly-Listed Electric Utilities Companies 14.75x
Hong Kong Market PE Ratio Median Figure of 1,498 Publicly-Listed Companies 10.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CLP Holdings.

SEHK:2 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2 Share Price ÷ EPS (both in HKD)

= 90.65 ÷ 5.36

16.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CLP Holdings is overvalued based on earnings compared to the HK Electric Utilities industry average.
  • CLP Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does CLP Holdings's expected growth come at a high price?
Raw Data
SEHK:2 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-0.7%per year
Asia Electric Utilities Industry PEG Ratio Median Figure of 10 Publicly-Listed Electric Utilities Companies 0.88x
Hong Kong Market PEG Ratio Median Figure of 469 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:2 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.9x ÷ -0.7%

-24.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CLP Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on CLP Holdings's assets?
Raw Data
SEHK:2 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$45.46
SEHK:2 Share Price * SEHK (2019-03-21) in HKD HK$90.65
Hong Kong Electric Utilities Industry PB Ratio Median Figure of 7 Publicly-Listed Electric Utilities Companies 1.38x
Hong Kong Market PB Ratio Median Figure of 2,138 Publicly-Listed Companies 0.99x
SEHK:2 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2 Share Price ÷ Book Value per Share (both in HKD)

= 90.65 ÷ 45.46

1.99x

* Primary Listing of CLP Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CLP Holdings is overvalued based on assets compared to the HK Electric Utilities industry average.
X
Value checks
We assess CLP Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. CLP Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2 Future Performance

 How is CLP Holdings expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CLP Holdings expected to grow at an attractive rate?
  • CLP Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • CLP Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • CLP Holdings's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -0.7%
SEHK:2 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 2.5%
Hong Kong Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 1%
Asia Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 99,428 24,172 13,391 3
2020-12-31 95,445 21,880 13,198 11
2019-12-31 92,307 21,968 12,741 11
SEHK:2 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 91,425 23,951 13,550
2018-09-30 93,313 25,635 14,663
2018-06-30 95,200 27,319 15,776
2018-03-31 93,637 25,868 15,013
2017-12-31 92,073 24,417 14,249
2017-09-30 88,087 22,779 13,372
2017-06-30 84,100 21,140 12,495
2017-03-31 81,767 22,408 12,603
2016-12-31 79,434 23,676 12,711
2016-09-30 79,410 14,385
2016-06-30 79,386 21,372 16,058
2016-03-31 80,043 20,270 15,857

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CLP Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • CLP Holdings's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from CLP Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.30 5.60 5.01 3.00
2020-12-31 5.22 5.68 4.87 10.00
2019-12-31 5.03 5.38 4.78 10.00
SEHK:2 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 5.36
2018-09-30 5.80
2018-06-30 6.24
2018-03-31 5.94
2017-12-31 5.64
2017-09-30 5.29
2017-06-30 4.95
2017-03-31 4.99
2016-12-31 5.03
2016-09-30 5.69
2016-06-30 6.36
2016-03-31 6.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CLP Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CLP Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CLP Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2 Past Performance

  How has CLP Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CLP Holdings's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CLP Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • CLP Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • CLP Holdings's 1-year earnings growth is negative, it can't be compared to the HK Electric Utilities industry average.
Earnings and Revenue History
CLP Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CLP Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 91,425.00 13,550.00 4,449.00
2018-09-30 93,312.50 14,663.00 4,402.00
2018-06-30 95,200.00 15,776.00 4,355.00
2018-03-31 93,636.50 15,012.50 4,275.00
2017-12-31 92,073.00 14,249.00 4,195.00
2017-09-30 88,086.50 13,372.00 4,110.50
2017-06-30 84,100.00 12,495.00 4,026.00
2017-03-31 81,767.00 12,603.00 3,959.00
2016-12-31 79,434.00 12,711.00 3,892.00
2016-09-30 79,410.00 14,384.50 3,802.00
2016-06-30 79,386.00 16,058.00 3,712.00
2016-03-31 80,043.00 15,857.00 3,680.50
2015-12-31 80,700.00 15,656.00 3,649.00
2015-09-30 82,921.00 12,939.50 3,769.00
2015-06-30 85,142.00 10,223.00 3,889.00
2015-03-31 88,700.50 10,722.00 3,934.50
2014-12-31 92,259.00 11,221.00 3,980.00
2014-09-30 96,092.50 10,117.50 3,743.50
2014-06-30 99,926.00 9,014.00 3,507.00
2014-03-31 102,228.00 7,537.00 3,262.00
2013-12-31 104,530.00 6,060.00 3,017.00
2013-09-30 107,470.50 7,391.50 2,984.00
2013-06-30 110,411.00 8,723.00 2,951.00
2013-03-31 107,636.00 8,517.50 2,943.00
2012-12-31 104,861.00 8,312.00 2,935.00
2012-09-30 100,986.50 7,578.00 2,843.50
2012-06-30 97,112.00 6,844.00 2,752.00
2012-03-31 94,373.00 8,066.00 2,687.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CLP Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CLP Holdings used its assets less efficiently than the HK Electric Utilities industry average last year based on Return on Assets.
  • CLP Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CLP Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CLP Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2 Health

 How is CLP Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CLP Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CLP Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • CLP Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of CLP Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CLP Holdings Company Filings, last reported 2 months ago.

SEHK:2 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 124,932.00 56,627.00 14,670.00
2018-09-30 124,932.00 56,627.00 14,670.00
2018-06-30 122,401.00 57,549.00 11,231.00
2018-03-31 122,401.00 57,549.00 11,231.00
2017-12-31 121,507.00 58,589.00 13,560.00
2017-09-30 121,507.00 58,589.00 13,560.00
2017-06-30 114,442.00 55,243.00 6,833.00
2017-03-31 114,442.00 55,243.00 6,833.00
2016-12-31 105,773.00 51,646.00 8,372.00
2016-09-30 105,773.00 51,646.00 8,372.00
2016-06-30 103,209.00 57,327.00 6,970.00
2016-03-31 103,209.00 57,327.00 6,970.00
2015-12-31 100,932.00 57,733.00 7,082.00
2015-09-30 100,932.00 57,733.00 7,082.00
2015-06-30 96,002.00 72,463.00 6,936.00
2015-03-31 96,002.00 72,463.00 6,936.00
2014-12-31 95,959.00 67,435.00 7,690.00
2014-09-30 95,959.00 67,435.00 7,690.00
2014-06-30 98,807.00 77,765.00 13,136.00
2014-03-31 98,807.00 77,765.00 13,136.00
2013-12-31 87,481.00 86,520.00 8,968.00
2013-09-30 87,481.00 86,520.00 8,968.00
2013-06-30 86,846.00 89,295.00 10,235.00
2013-03-31 86,846.00 89,295.00 10,235.00
2012-12-31 91,201.00 95,500.00 16,649.00
2012-09-30 91,201.00 95,500.00 16,649.00
2012-06-30 80,021.00 94,711.00 11,499.00
2012-03-31 80,021.00 94,711.00 11,499.00
  • CLP Holdings's level of debt (45.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (98.6% vs 45.3% today).
  • Debt is well covered by operating cash flow (42.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.4x coverage).
X
Financial health checks
We assess CLP Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CLP Holdings has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.33%
Current annual income from CLP Holdings dividends. Estimated to be 3.48% next year.
If you bought HK$2,000 of CLP Holdings shares you are expected to receive HK$67 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CLP Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.97%).
  • CLP Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.3%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Asia Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 3.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 924 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 3.34 3.00
2020-12-31 3.19 12.00
2019-12-31 3.08 12.00
SEHK:2 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-08 3.020 3.312
2019-02-25 3.020 3.257
2018-02-26 2.910 3.365
2017-03-10 2.800 3.466
2017-02-27 2.800 3.539
2016-03-14 2.700 3.561
2016-02-29 2.700 3.918
2015-03-13 2.620 3.969
2015-02-26 2.620 3.897
2014-03-12 2.570 3.987
2014-02-26 2.570 4.256
2013-03-11 2.570 4.055
2013-02-25 2.570 3.818
2012-08-14 2.540 3.866
2012-02-27 3.840 5.835
2011-10-17 2.080 3.117
2011-02-24 2.480 3.711
2011-01-24 2.480 3.921
2010-03-10 2.480 4.198
2010-02-25 2.480 4.603
2009-08-18 2.080 3.967
2009-05-13 2.080 3.996
2009-03-23 2.480 4.734

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of CLP Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess CLP Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CLP Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CLP Holdings has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2 Management

 What is the CEO of CLP Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Kendall Lancaster
COMPENSATION HK$21,400,000
AGE 56
TENURE AS CEO 5.5 years
CEO Bio

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 Kong Division of CLP Holdings Ltd. since January 4, 2010. He served as Group Director at CLP Holdings Ltd. from January 04, 2010 to September 30, 2013. He served as a Commercial Director of CLP Power Hong Kong Limited since 2002. Mr. Lancaster was responsible for CLP Power Hong Kong Ltd's commercial affairs including fuel developments and environmental management and had overall responsibility for the operations of the Hong Kong business. He has over 25 years’ experience in the power industry and in other industrial operations in Australia, U.K. and Hong Kong. He has been the Chairman Business Environment Council, Council member at World Business Council for Sustainable Development (a member of the Climate and Energy Cluster Board), Fellow of Hong Kong Management Association, Founding member of the Advisory Council of The Australian Chamber of Commerce Hong Kong & Macau, Board member of UNSW Hong Kong. He joined CLP Power Hong Kong Ltd. Company in 1992 and held a range of posts mostly in the Generation business before moving to lead up the Corporate Commercial Group in 2002. An engineer by background, Mr. Lancaster began his career at Electricity Commission of New South Wales in Australia and gained a wide experience in various industrial operations in both Australia and the United Kingdom. He serves as Director of Hong Kong Pumped Storage Development Company, Limited and EnergyAustralia Holdings Limited. He serves as Director of CLP Power Hong Kong Limited. He has been a Director of CLP Power Hong Kong Financing Ltd. since January 8, 2010. He has been an Executive Director of CLP Holdings Ltd. since June 3, 2013. Mr. Lancaster holds Bachelor Degree in Electrical Engineering from the University of New South Wales.

CEO Compensation
  • Richard Kendall's compensation has been consistent with company performance over the past year.
  • Richard Kendall's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the CLP Holdings management team in years:

5.5
Average Tenure
56
Average Age
  • The average tenure for the CLP Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Derek Parkin

TITLE
Chief Operating Officer
COMPENSATION
HK$11M
AGE
58
TENURE
3.5 yrs

David John Simmonds

TITLE
Chief Administrative Officer
COMPENSATION
HK$14M
AGE
48
TENURE
5.5 yrs

Quince Chong

TITLE
Chief Corporate Development Officer
COMPENSATION
HK$14M
AGE
54
TENURE
6.5 yrs

Roy Anthony Massey

TITLE
Chief Human Resources Officer
COMPENSATION
HK$11M
AGE
63

Rajiv Ranjan Mishra

TITLE
Managing Director of India
COMPENSATION
HK$11M
AGE
52
TENURE
13.7 yrs

Siu Hung Chan

TITLE
Managing Director of China
COMPENSATION
HK$12M
AGE
59

Catherine Leigh Tanna

TITLE
Former Managing Director of EnergyAustralia
COMPENSATION
HK$34M
AGE
56
TENURE
4.7 yrs

Richard Kendall Lancaster

TITLE
CEO & Executive Director
COMPENSATION
HK$21M
AGE
56
TENURE
5.5 yrs

Geert Herman Peeters

TITLE
CFO & Executive Director
COMPENSATION
HK$14M
AGE
54
TENURE
4.9 yrs

Angus Guthrie

TITLE
Director of Investor Relations
Board of Directors Tenure

Average tenure and age of the CLP Holdings board of directors in years:

14.3
Average Tenure
63.5
Average Age
  • The average tenure for the CLP Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Michael David Kadoorie

TITLE
Non-Executive Chairman
COMPENSATION
HK$765K
AGE
77
TENURE
21.4 yrs

Richard Kendall Lancaster

TITLE
CEO & Executive Director
COMPENSATION
HK$21M
AGE
56
TENURE
5.8 yrs

William Elkin Mocatta

TITLE
Vice Chairman
COMPENSATION
HK$1M
AGE
66
TENURE
20.2 yrs

Geert Herman Peeters

TITLE
CFO & Executive Director
COMPENSATION
HK$14M
AGE
54
TENURE
3.2 yrs

Vernon Francis Moore

TITLE
Independent Non-Executive Director
COMPENSATION
HK$1M
AGE
71
TENURE
21.4 yrs

Betty So

TITLE
Group Director & Vice Chairman of CLP Power Hong Kong Limited
COMPENSATION
HK$12M
AGE
60
TENURE
9.2 yrs

Nick Allen

TITLE
Independent Non-Executive Director
COMPENSATION
HK$1M
AGE
63
TENURE
9.8 yrs

Vincent Cheng

TITLE
Independent Non-Executive Director
COMPENSATION
HK$951K
AGE
70
TENURE
7.6 yrs

John Andrew Harry Leigh

TITLE
Non-Executive Director
COMPENSATION
HK$538K
AGE
64
TENURE
21.4 yrs

Andrew Clifford Winawer Brandler

TITLE
Non-Executive Director
COMPENSATION
HK$933K
AGE
62
TENURE
18.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
03. Apr 18 Buy BlackRock, Inc. Company 29. Mar 18 29. Mar 18 791,784 HK$79.80 HK$63,186,741
X
Management checks
We assess CLP Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CLP Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2 News

Simply Wall St News

Is CLP Holdings Limited's (HKG:2) Balance Sheet Strong Enough To Weather A Storm?

One reason being its ‘too big to fail’ aura which gives it the appearance of a strong and stable investment. … Today we will look at CLP Holdings’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Read This Before Considering CLP Holdings Limited (HKG:2) For Its Upcoming HK$1.19 Dividend

Investors who want to cash in on CLP Holdings Limited's (HKG:2) upcoming dividend of HK$1.19 per share have only 4 days left to buy the shares before its ex-dividend date, 08 March 2019, in time for dividends payable on the 21 March 2019. … 5 checks you should use to assess a dividend stock? … If you are a dividend investor, you should always assess these five key metrics:?

Simply Wall St -

Is CLP Holdings Limited (HKG:2) Overpaying Its CEO?

Richard Lancaster became the CEO of CLP Holdings Limited (HKG:2) in 2013. … This analysis aims first to contrast CEO compensation with other large companies. … How Does Richard Lancaster's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Do Insiders Own Lots Of Shares In CLP Holdings Limited (HKG:2)?

So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Our analysis of the ownership of the company, below, shows that. … See our latest analysis for CLP Holdings

Simply Wall St -

Does The Data Make CLP Holdings Limited (HKG:2) An Attractive Investment?

CLP Holdings Limited (HKG:2) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of 2, it

Simply Wall St -

Boasting A 14% Return On Equity, Is CLP Holdings Limited (HKG:2) A Top Quality Stock?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Don't Sell CLP Holdings Limited (HKG:2) Before You Read This

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at CLP Holdings Limited's (HKG:2) P/E ratio and reflect on what it tells us about the company's share price. … CLP Holdings has a price to earnings ratio of 14.11, based on the last twelve months.

Simply Wall St -

What You Must Know About CLP Holdings Limited's (HKG:2) Financial Strength

There are a number of reasons that attract investors towards large-cap companies such as CLP Holdings Limited (HKG:2), with a market cap of HK$218b. … its financial health remains the key to continued success. … I will provide an overview of CLP Holdings’s financial liquidity and leverage to give you an idea of CLP Holdings’s position to take advantage of potential acquisitions or comfortably endure future downturns.

Simply Wall St -

Should You Buy CLP Holdings Limited (HKG:2) For Its Dividend?

Historically, CLP Holdings Limited (HKG:2) has paid a dividend to shareholders. … Does CLP Holdings tick all the boxes of a great dividend stock? … How I analyze a dividend stock

Simply Wall St -

What Kind Of Investor Owns Most Of CLP Holdings Limited (HKG:2)?

Every investor in CLP Holdings Limited (HKG:2) should be aware of the most powerful shareholder groups. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

2 Company Info

Description

CLP Holdings Limited, an investment holding company, generates, transmits, and distributes 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. As of December 31, 2018, it had equity generating capacity of 19,108 megawatts (MW) and purchasing capacity of 4,597 MW. The company is also involved in the provision of pumped storage and engineering services; research and development, and property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.

Details
Name: CLP Holdings Limited
2
Exchange: SEHK
Founded: 1901
HK$227,380,551,300
2,526,450,570
Website: http://www.clpgroup.com
Address: CLP Holdings Limited
8 Laguna Verde Avenue,
Hung Hom,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 06. Jan 1998
OTCPK CLPH.F Ordinary Shares Pink Sheets LLC US USD 06. Jan 1998
DB CLP Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1998
SHSC 2 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 06. Jan 1998
SZSC 2 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 06. Jan 1998
OTCPK CLPH.Y ADR EACH REP 1 HKD5 LEVEL1(MGT) Pink Sheets LLC US USD 31. Jan 1985
DB CLP1 ADR EACH REP 1 HKD5 LEVEL1(MGT) Deutsche Boerse AG DE EUR 31. Jan 1985
Number of employees
Current staff
Staff numbers
7,634
CLP Holdings employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 12:38
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2019/02/27
Last earnings filing: 2019/03/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.