SEHK:2

Stock Analysis Report

Executive Summary

CLP Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

-0.1%

2

1.2%

HK Electric Utilities

2.2%

HK Market


1 Year Return

-8.0%

2

-6.6%

HK Electric Utilities

-1.3%

HK Market

Return vs Industry: 2 underperformed the Hong Kong Electric Utilities industry which returned -6.6% over the past year.

Return vs Market: 2 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

2IndustryMarket
7 Day-0.1%1.2%2.2%
30 Day-1.0%-0.5%-2.9%
90 Day-8.2%-9.6%-5.8%
1 Year-4.8%-8.0%-2.6%-6.6%2.3%-1.3%
3 Year16.2%4.5%8.8%-9.4%15.6%3.9%
5 Year49.9%24.6%33.9%2.7%20.1%0.06%

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 based on future cash flows and its price relative to the stock market?

39.25x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 2 (HK$80.9) is trading above our estimate of fair value (HK$67.55)

Significantly Undervalued: 2 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 2 is poor value based on its PE Ratio (39.3x) compared to the Electric Utilities industry average (14.4x).

PE vs Market: 2 is poor value based on its PE Ratio (39.3x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 2 is good value based on its PEG Ratio (0.9x)


Price Based on Value of Assets

PB vs Industry: 2 is overvalued based on its PB Ratio (1.9x) compared to the HK Electric Utilities industry average (1.3x).


Next Steps

Future Growth

How is CLP Holdings expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

41.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 2's forecast earnings growth (41.9% per year) is above the savings rate (2%).

Earnings vs Market: 2's earnings (41.9% per year) are forecast to grow faster than the Hong Kong market (11.2% 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 (10.1% 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 Estimates


Future Return on Equity

High Future ROE: 2's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has CLP Holdings performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2's earnings have grown by 1% 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 (-67%) over the past year, making it difficult to compare to the Electric Utilities industry average (-14.7%).


Return on Equity

High ROE: 2's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: 2's Return on Assets is below or equal to the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: 2 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CLP Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2's short term assets (HK$31.9B) do not cover its short term liabilities (HK$41.7B)

Long Term Liabilities: 2's short term assets (31.9B) do not cover its long term liabilities (60.8B)


Debt to Equity History and Analysis

Debt Level: 2's debt to equity ratio (46.3%) is considered high

Reducing Debt: 2's debt to equity ratio has reduced from 78.6% to 46.3% over the past 5 years.

Debt Coverage: 2's debt is well covered by operating cash flow (37%).

Interest Coverage: 2's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: 2 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

3.98%

Expected Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.3%markettop25%6.3%industryaverage5.0%forecastin3Years4.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 2's dividend (3.73%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 2's dividend (3.73%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 2's dividend payments have been volatile 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 (148.5%), 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

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

6.1yrs

Average management tenure


CEO

Richard Kendall Lancaster (57yo)

6.1yrs

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 ($USD0.00) is too low to compare against companies of similar size in the Hong Kong market ($USD791.33K).

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


Management Age and Tenure

6.1yrs

Average Tenure

55yo

Average Age

Experienced Management: 2's management team is seasoned and experienced (6.1 years average tenure).


Board Age and Tenure

14.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 2's board of directors are seasoned and experienced ( 14.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellHK$462,50029 May 19
Fan Chiu Fun Law
EntityIndividual
Shares5,000
Max PriceHK$92.50
SellHK$460,00029 May 19
Fan Chiu Fun Law
EntityIndividual
Shares5,000
Max PriceHK$92.00

Ownership Breakdown


Management Team

  • Kenneth Oberg (71yo)

    Managing Director of CLP Power International

    • Tenure: 0yrs
  • Geert Herman Peeters (55yo)

    CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$13.90m
  • Quince Chong (55yo)

    Chief Corporate Development Officer

    • Tenure: 7.1yrs
    • Compensation: HK$13.80m
  • Richard Kendall Lancaster (57yo)

    CEO & Executive Director

    • Tenure: 6.1yrs
    • Compensation: HK$21.40m
  • Rajiv Ranjan Mishra (53yo)

    Managing Director of India

    • Tenure: 14.3yrs
    • Compensation: HK$10.80m
  • Angus Guthrie

    Director of Investor Relations

    • Tenure: 0yrs
  • Siu Hung Chan (60yo)

    Managing Director of China

    • Tenure: 0yrs
    • Compensation: HK$11.80m
  • Louise Herron

    Chief Executive Officer of Sydney Opera House

    • Tenure: 0yrs
  • Zenda Kuo (53yo)

    Director Commercial and Business Development - Innovation

    • Tenure: 3yrs
  • David John Simmonds (49yo)

    Chief Administrative Officer

    • Tenure: 6.1yrs
    • Compensation: HK$14.10m

Board Members

  • Michael David Kadoorie (78yo)

    Non-Executive Chairman

    • Tenure: 22yrs
    • Compensation: HK$765.47k
  • William Elkin Mocatta (67yo)

    Vice Chairman

    • Tenure: 20.8yrs
    • Compensation: HK$1.11m
  • Vernon Francis Moore (72yo)

    Independent Non-Executive Director

    • Tenure: 22yrs
    • Compensation: HK$1.39m
  • John Andrew Harry Leigh (65yo)

    Non-Executive Director

    • Tenure: 22yrs
    • Compensation: HK$538.48k
  • Andrew Clifford Winawer Brandler (63yo)

    Non-Executive Director

    • Tenure: 19.4yrs
    • Compensation: HK$933.04k
  • Betty So (61yo)

    Group Director & Vice Chairman of CLP Power Hong Kong Limited

    • Tenure: 9.8yrs
    • Compensation: HK$12.30m
  • Vincent Cheng (71yo)

    Independent Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: HK$950.74k
  • Geert Herman Peeters (55yo)

    CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$13.90m
  • Richard Kendall Lancaster (57yo)

    CEO & Executive Director

    • Tenure: 6.1yrs
    • Compensation: HK$21.40m
  • Nick Allen (64yo)

    Independent Non-Executive Director

    • Tenure: 10.4yrs
    • Compensation: HK$1.35m

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$204.390b
  • 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, generates, transmits, and distributes electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates elec ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 12:45
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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