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.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: 2 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.9%
2
0.5%
HK Electric Utilities
1.7%
HK Market
1 Year Return
-12.2%
2
-7.3%
HK Electric Utilities
-2.9%
HK Market
Return vs Industry: 2 underperformed the Hong Kong Electric Utilities industry which returned -7.3% over the past year.
Return vs Market: 2 underperformed the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 2 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 0.5% | 1.7% |
| 30 Day | -1.1% | -1.6% | -4.2% |
| 90 Day | 2.1% | 3.2% | 4.6% |
| 1 Year | -9.1%-12.2% | -3.4%-7.3% | 0.7%-2.9% |
| 3 Year | 19.1%7.0% | 13.0%-4.4% | 15.3%3.6% |
| 5 Year | 45.6%21.1% | 27.7%-2.0% | 15.9%-3.5% |
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
1 week ago | Simply Wall St
Looking For Steady Income For Your Dividend Portfolio? Is CLP Holdings Limited (HKG:2) A Good Fit?3 weeks ago | Simply Wall St
Are CLP Holdings Limited (HKG:2) Investors Paying Above The Intrinsic Value?1 month ago | Simply Wall St
CLP Holdings (HKG:2) Has A Somewhat Strained Balance SheetValuation
Is CLP Holdings undervalued compared to its fair value and its price relative to the market?
40.03x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 2 (HK$82.5) is trading above our estimate of fair value (HK$68.19)
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 (40x) compared to the Electric Utilities industry average (15x).
PE vs Market: 2 is poor value based on its PE Ratio (40x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 2 is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: 2 is overvalued based on its PB Ratio (1.9x) compared to the HK Electric Utilities industry average (1.4x).
Next Steps
Future Growth
How is CLP Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
40.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2's forecast earnings growth (40.4% per year) is above the savings rate (1.6%).
Earnings vs Market: 2's earnings (40.4% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2's revenue (3.7% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).
High Growth Revenue: 2's revenue (3.7% 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 (10.8%).
Next Steps
Past Performance
How has CLP Holdings performed over the past 5 years?
1.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2 has a large one-off loss of HK$6.4B impacting its June 30 2019 financial results.
Growing Profit Margin: 2's current net profit margins (5.9%) are lower than last year (16.6%).
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
Return on Capital Employed
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 (HK$31.9B) do not cover its long term liabilities (HK$60.8B).
Debt to Equity History and Analysis
Debt Level: 2's debt to equity ratio (47.1%) is considered high.
Reducing Debt: 2's debt to equity ratio has reduced from 78.6% to 47.1% over the past 5 years.
Debt Coverage: 2's debt is well covered by operating cash flow (36.4%).
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?
3.66%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 2's dividend (3.66%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 2's dividend (3.66%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).
Stability and Growth of Payments
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 (68.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.4yrs
Average management tenure
CEO
Richard Kendall Lancaster (57yo)
6.4yrs
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 ($USD1.12M).
Compensation vs Earnings: Richard Kendall's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Administrative Officer | 6.4yrs | HK$14.10m | no data | |
| Chief Corporate Development Officer | 7.4yrs | HK$13.80m | no data | |
| Managing Director of India | 14.6yrs | HK$10.80m | no data | |
| Managing Director of China | 0yrs | HK$11.80m | no data | |
| CEO & Executive Director | 6.4yrs | HK$21.40m | 0.000020% HK$41.7k | |
| CFO & Executive Director | 4.1yrs | HK$13.90m | no data | |
| Chief Operating Officer | 0.3yrs | no data | no data | |
| Director of Investor Relations | 0yrs | no data | no data | |
| Chief Human Resources Officer | 0.4yrs | no data | no data | |
| Managing Director of CLP Power International | 0yrs | no data | no data |
6.4yrs
Average Tenure
55yo
Average Age
Experienced Management: 2's management team is seasoned and experienced (6.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 6.4yrs | HK$21.40m | 0.000020% HK$41.7k | |
| CFO & Executive Director | 4.1yrs | HK$13.90m | no data | |
| Non-Executive Chairman | 22.3yrs | HK$765.47k | 0.051% HK$107.3m | |
| Vice Chairman | 21.1yrs | HK$1.11m | 0.016% HK$33.0m | |
| Independent Non-Executive Director | 22.3yrs | HK$1.39m | no data | |
| Non-Executive Director | 22.3yrs | HK$538.48k | 0.0057% HK$12.0m | |
| Non-Executive Director | 19.8yrs | HK$933.04k | 0.00042% HK$875.4k | |
| Group Director & Vice Chairman of CLP Power Hong Kong Limited | 10.1yrs | HK$12.30m | no data | |
| Independent Non-Executive Director | 8.5yrs | HK$950.74k | no data | |
| Independent Non-Executive Director | 10.8yrs | HK$1.35m | 0.0011% HK$2.2m |
15.3yrs
Average Tenure
64.5yo
Average Age
Experienced Board: 2's board of directors are seasoned and experienced ( 15.3 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$208.432b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CLPH.Y | OTCPK (Pink Sheets LLC) | ADR EACH REP 1 HKD5 LEVEL1(MGT) | US | USD | Jan 1985 | |
| CLP1 | DB (Deutsche Boerse AG) | ADR EACH REP 1 HKD5 LEVEL1(MGT) | DE | EUR | Jan 1985 | |
| CLPH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1998 |
| 2 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 1998 |
| CLP | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1998 |
| 2 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1998 |
| 2 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 12:43 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.