2638 Stock Overview
HK Electric Investments and HK Electric Investments Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong Island and Lamma Island.
HK Electric Investments and HK Electric Investments Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||HK$7.23|
|52 Week High||HK$7.99|
|52 Week Low||HK$7.14|
|1 Month Change||-6.10%|
|3 Month Change||-8.37%|
|1 Year Change||-8.71%|
|3 Year Change||-9.63%|
|5 Year Change||0.70%|
|Change since IPO||35.39%|
Recent News & Updates
Return Trends At HK Electric Investments and HK Electric Investments (HKG:2638) Aren't Appealing
What are the early trends we should look for to identify a stock that could multiply in value over the long term...
Is HK Electric Investments and HK Electric Investments (HKG:2638) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
HK Electric Investments and HK Electric Investments' (HKG:2638) Solid Earnings Have Been Accounted For Conservatively
HK Electric Investments and HK Electric Investments Limited's ( HKG:2638 ) solid earnings announcement recently didn't...
HK Electric Investments and HK Electric Investments (HKG:2638) Has Announced A Dividend Of HK$0.16
HK Electric Investments and HK Electric Investments Limited ( HKG:2638 ) will pay a dividend of HK$0.16 on the 11th of...
|2638||HK Electric Utilities||HK Market|
Return vs Industry: 2638 underperformed the Hong Kong Electric Utilities industry which returned -7.1% over the past year.
Return vs Market: 2638 exceeded the Hong Kong Market which returned -23.3% over the past year.
|2638 Average Weekly Movement||1.7%|
|Electric Utilities Industry Average Movement||2.8%|
|Market Average Movement||7.0%|
|10% most volatile stocks in HK Market||13.8%|
|10% least volatile stocks in HK Market||3.3%|
Stable Share Price: 2638 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: 2638's weekly volatility (2%) has been stable over the past year.
About the Company
|1889||1,699||Chi Tin Wan||https://www.hkelectric.com|
HK Electric Investments and HK Electric Investments Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong Island and Lamma Island. As of December 31, 2021, the company operated 6 coal-fired units, 5 oil-fired gas turbine units, 3 gas-fired combined-cycle units, 1 solar power system, and 1 wind turbine with an installed capacity of 3,617 megawatts. It also operated a transmission and distribution network of 6,734 kilometers; 4,100 substations; and 6,300 transformers, as well as served 584,000 residential, commercial, and industrial customers.
HK Electric Investments and HK Electric Investments Fundamentals Summary
|2638 fundamental statistics|
Is 2638 overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|2638 income statement (TTM)|
|Cost of Revenue||HK$5.50b|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
|Earnings per share (EPS)||0.33|
|Net Profit Margin||25.86%|
How did 2638 perform over the long term?See historical performance and comparison
4.4%Current Dividend Yield
Is 2638 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 2638?
Other financial metrics that can be useful for relative valuation.
|What is 2638's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does 2638's PE Ratio compare to its peers?
|2638 PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: 2638 is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (14.5x).
Price to Earnings Ratio vs Industry
How does 2638's PE Ratio compare vs other companies in the Electric Utilities Industry?
Price-To-Earnings vs Industry: 2638 is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the Hong Kong Electric Utilities industry average (18.1x)
Price to Earnings Ratio vs Fair Ratio
What is 2638's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||21.8x|
|Fair PE Ratio||9.6x|
Price-To-Earnings vs Fair Ratio: 2638 is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.6x).
Share Price vs Fair Value
What is the Fair Price of 2638 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 2638 (HK$7.23) is trading below our estimate of fair value (HK$9.21)
Significantly Below Fair Value: 2638 is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: 2638 is poor value based on its PEG Ratio (8.3x)
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How is HK Electric Investments and HK Electric Investments forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2638's forecast earnings growth (2.6% per year) is above the savings rate (1.5%).
Earnings vs Market: 2638's earnings (2.6% per year) are forecast to grow slower than the Hong Kong market (17% per year).
High Growth Earnings: 2638's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2638's revenue (3.4% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).
High Growth Revenue: 2638's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2638's Return on Equity is forecast to be low in 3 years time (6.6%).
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How has HK Electric Investments and HK Electric Investments performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2638 has high quality earnings.
Growing Profit Margin: 2638's current net profit margins (25.9%) are lower than last year (26.3%).
Past Earnings Growth Analysis
Earnings Trend: 2638's earnings have declined by 6.7% per year over the past 5 years.
Accelerating Growth: 2638's earnings growth over the past year (7.4%) exceeds its 5-year average (-6.7% per year).
Earnings vs Industry: 2638 earnings growth over the past year (7.4%) exceeded the Electric Utilities industry 1.4%.
Return on Equity
High ROE: 2638's Return on Equity (6.1%) is considered low.
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How is HK Electric Investments and HK Electric Investments's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: 2638's short term assets (HK$2.3B) do not cover its short term liabilities (HK$5.8B).
Long Term Liabilities: 2638's short term assets (HK$2.3B) do not cover its long term liabilities (HK$60.6B).
Debt to Equity History and Analysis
Debt Level: 2638's net debt to equity ratio (96.1%) is considered high.
Reducing Debt: 2638's debt to equity ratio has increased from 79.6% to 96.3% over the past 5 years.
Debt Coverage: 2638's debt is not well covered by operating cash flow (13.3%).
Interest Coverage: 2638's interest payments on its debt are well covered by EBIT (6.3x coverage).
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What is HK Electric Investments and HK Electric Investments's current dividend yield, its reliability and sustainability?
Dividend Score 1/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2638's dividend (4.43%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).
High Dividend: 2638's dividend (4.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).
Stability and Growth of Payments
Stable Dividend: 2638 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 2638 has only been paying a dividend for 8 years, and since then payments have fallen.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (96.5%), 2638's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (207.6%), 2638's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chi Tin Wan (71 yo)
Mr. Chi Tin Wan has been the Chief Executive Officer of HK Electric Investments and HK Electric Investments Limited since December 5, 2013 and Executive Director since September 23, 2013. Mr. Wan serves as...
CEO Compensation Analysis
Compensation vs Market: Chi Tin's total compensation ($USD2.42M) is above average for companies of similar size in the Hong Kong market ($USD626.60K).
Compensation vs Earnings: Chi Tin's compensation has been consistent with company performance over the past year.
Experienced Management: 2638's management team is seasoned and experienced (10.1 years average tenure).
Experienced Board: 2638's board of directors are considered experienced (8.5 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
HK Electric Investments and HK Electric Investments Limited's employee growth, exchange listings and data sources
- Name: HK Electric Investments and HK Electric Investments Limited
- Ticker: 2638
- Exchange: SEHK
- Founded: 1889
- Industry: Electric Utilities
- Sector: Utilities
- Implied Market Cap: HK$63.886b
- Shares outstanding: 8.84b
- Website: https://www.hkelectric.com
Number of Employees
- HK Electric Investments and HK Electric Investments Limited
- Hongkong Electric Centre
- 44 Kennedy Road
- Hong Kong
- Hong Kong
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/26 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.