HK Electric Investments and HK Electric Investments
HK Electric Investments and HK Electric Investments Limited, a vertically integrated power utility, generates, transmits, distributes, and supplies electricity in Hong Kong Island and Lamma Island. The last earnings update was 46 days ago. More info.
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2638 Share Price and Events
7 Day Returns
1 Year Returns
2638 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| HK Electric Investments and HK Electric Investments (2638) | -0.7% | -1.6% | -5.8% | 3.8% | 9% | 43.7% |
| HK Electric Utilities | -0.4% | 0% | -2.3% | 5.9% | -3.4% | 16.8% |
| HK Market | -2.5% | -8.6% | -2.1% | -15.9% | 25.4% | 7.8% |
1 Year Return vs Industry and Market
- 2638 underperformed the Electric Utilities industry which returned 5.9% over the past year.
- 2638 outperformed the Market in Hong Kong which returned -15.9% over the past year.
2638 Value
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
HK Electric Investments and HK Electric Investments
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for HK Electric Investments and HK Electric Investments.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 9 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.
| 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 | 0.23 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.235 (1 + (1- 25%) (62.49%)) |
0.561 |
| 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:2638 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for HK Electric Investments and HK Electric Investments 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.
| Levered FCF (HKD, Millions) | Source |
Present Value Discounted (@ 7.32%) |
|
|---|---|---|---|
| 2019 | 1,398.50 | Analyst x2 | 1,303.08 |
| 2020 | 1,487.67 | Analyst x3 | 1,291.58 |
| 2021 | 2,015.00 | Analyst x1 | 1,630.03 |
| 2022 | 2,039.62 | Est @ 1.22% | 1,537.37 |
| 2023 | 2,069.32 | Est @ 1.46% | 1,453.32 |
| 2024 | 2,102.84 | Est @ 1.62% | 1,376.10 |
| 2025 | 2,139.33 | Est @ 1.74% | 1,304.45 |
| 2026 | 2,178.16 | Est @ 1.82% | 1,237.51 |
| 2027 | 2,218.93 | Est @ 1.87% | 1,174.65 |
| 2028 | 2,261.34 | Est @ 1.91% | 1,115.42 |
| Present value of next 10 years cash flows | HK$13,423.50 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= HK$2,261.34 × (1 + 2%) ÷ (7.32% – 2%) |
HK$43,357.74 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= HK$43,357.74 ÷ (1 + 7.32%)10 |
HK$21,386.44 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= HK$13,423.50 + HK$21,386.44 |
HK$34,809.94 |
| Equity Value per Share (HKD) |
= Total value / Shares Outstanding
= HK$34,809.94 / 8,836.20 |
HK$3.94 |
| Calculation | Result | |
|---|---|---|
| Value per share (HKD) | From above. | HK$3.94 |
| Current discount | Discount to share price of
HK$7.60
= -1 x (HK$7.60 - HK$3.94) / HK$3.94 |
-92.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of HK Electric Investments and HK Electric Investments is above its future cash flow value.
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 HK Electric Investments and HK Electric Investments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
HK Electric Investments and HK Electric Investments's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in HKD | HK$0.35 |
| SEHK:2638 Share Price ** | SEHK (2019-05-17) in HKD | HK$7.6 |
| Hong Kong Electric Utilities Industry PE Ratio | Median Figure of 6 Publicly-Listed Electric Utilities Companies | 15.49x |
| Hong Kong Market PE Ratio | Median Figure of 1,476 Publicly-Listed Companies | 11.17x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of HK Electric Investments and HK Electric Investments.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SEHK:2638 Share Price ÷ EPS (both in HKD) = 7.6 ÷ 0.35 |
22.01x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HK Electric Investments and HK Electric Investments is overvalued based on earnings compared to the HK Electric Utilities industry average.
- HK Electric Investments and HK Electric Investments is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does
HK Electric Investments and HK Electric Investments's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 22.01x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts |
-4.8%per year |
| Asia Electric Utilities Industry PEG Ratio | Median Figure of 10 Publicly-Listed Electric Utilities Companies | 0.8x |
| Hong Kong Market PEG Ratio | Median Figure of 463 Publicly-Listed Companies | 0.79x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 22.01x ÷ -4.8% |
-4.62x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HK Electric Investments and HK Electric Investments 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
HK Electric Investments and HK Electric Investments's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in HKD | HK$5.52 |
| SEHK:2638 Share Price * | SEHK (2019-05-17) in HKD | HK$7.6 |
| 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 2,155 Publicly-Listed Companies | 0.97x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SEHK:2638 Share Price ÷ Book Value per Share (both in HKD) = 7.6 ÷ 5.52 |
1.38x |
* Primary Listing of HK Electric Investments and HK Electric Investments.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HK Electric Investments and HK Electric Investments is good value based on assets compared to the HK Electric Utilities industry average.
Value checks
We assess HK Electric Investments and HK Electric Investments's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check) HK Electric Investments and HK Electric Investments has a total score of 1/6, 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.
2638 Future Performance
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!
Earnings growth vs Low Risk Savings
- HK Electric Investments and HK Electric Investments'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
- HK Electric Investments and HK Electric Investments's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
- HK Electric Investments and HK Electric Investments's revenues are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SEHK:2638 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts | -4.8% |
| SEHK:2638 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts | -0.3% |
| Hong Kong Electric Utilities Industry Earnings Growth Rate | Market Cap Weighted Average | 1% |
| Asia Electric Utilities Industry Revenue Growth Rate | Market Cap Weighted Average | 3.7% |
| Hong Kong Market Earnings Growth Rate | Market Cap Weighted Average | 11.4% |
| Hong Kong Market Revenue Growth Rate | Market Cap Weighted Average | 10.7% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Date (Data in HKD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 11,542 | 6,769 | 2,661 | 4 |
| 2020-12-31 | 11,271 | 5,924 | 2,663 | 9 |
| 2019-12-31 | 10,826 | 6,475 | 2,537 | 7 |
| Date (Data in HKD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 11,612 | 5,015 | 3,051 |
| 2018-09-30 | 11,718 | 5,465 | 3,186 |
| 2018-06-30 | 11,824 | 5,915 | 3,320 |
| 2018-03-31 | 11,759 | 5,901 | 3,331 |
| 2017-12-31 | 11,693 | 5,887 | 3,341 |
| 2017-09-30 | 11,557 | 6,386 | 3,421 |
| 2017-06-30 | 11,420 | 6,885 | 3,501 |
| 2017-03-31 | 11,420 | 7,452 | 3,550 |
| 2016-12-31 | 11,420 | 8,018 | 3,599 |
| 2016-09-30 | 11,362 | 8,125 | 3,543 |
| 2016-06-30 | 11,304 | 8,232 | 3,487 |
| 2016-03-31 | 11,257 | 8,148 | 3,539 |
*GAAP earnings excluding extraordinary items.
High Growth Checks
- HK Electric Investments and HK Electric Investments's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
- HK Electric Investments and HK Electric Investments's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
All data from HK Electric Investments and HK Electric Investments Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in HKD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 0.29 | 0.30 | 0.28 | 4.00 |
| 2020-12-31 | 0.30 | 0.33 | 0.28 | 8.00 |
| 2019-12-31 | 0.29 | 0.31 | 0.27 | 8.00 |
| Date (Data in HKD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.35 |
| 2018-09-30 | 0.36 |
| 2018-06-30 | 0.38 |
| 2018-03-31 | 0.38 |
| 2017-12-31 | 0.38 |
| 2017-09-30 | 0.39 |
| 2017-06-30 | 0.40 |
| 2017-03-31 | 0.40 |
| 2016-12-31 | 0.41 |
| 2016-09-30 | 0.40 |
| 2016-06-30 | 0.39 |
| 2016-03-31 | 0.40 |
*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.
- HK Electric Investments and HK Electric Investments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess HK Electric Investments and HK Electric Investments's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
HK Electric Investments and HK Electric Investments 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.
2638 Past Performance
How has HK Electric Investments and HK Electric Investments 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
Past Earnings growth analysis
- HK Electric Investments and HK Electric Investments's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- HK Electric Investments and HK Electric Investments's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- HK Electric Investments and HK Electric Investments's 1-year earnings growth is negative, it can't be compared to the HK Electric Utilities industry average.
Earnings and Revenue History
All data from HK Electric Investments and HK Electric Investments Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in HKD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 11,612.00 | 3,051.00 | ||
| 2018-09-30 | 11,718.00 | 3,185.50 | ||
| 2018-06-30 | 11,824.00 | 3,320.00 | ||
| 2018-03-31 | 11,758.50 | 3,330.50 | ||
| 2017-12-31 | 11,693.00 | 3,341.00 | ||
| 2017-09-30 | 11,556.50 | 3,421.00 | ||
| 2017-06-30 | 11,420.00 | 3,501.00 | ||
| 2017-03-31 | 11,420.00 | 3,550.00 | ||
| 2016-12-31 | 11,420.00 | 3,599.00 | ||
| 2016-09-30 | 11,362.00 | 3,543.00 | ||
| 2016-06-30 | 11,304.00 | 3,487.00 | ||
| 2016-03-31 | 11,257.00 | 3,539.00 | ||
| 2015-12-31 | 11,210.00 | 3,591.00 | ||
| 2015-09-30 | 11,232.50 | 3,515.00 | ||
| 2015-06-30 | 11,255.00 | 3,439.00 | ||
| 2015-03-31 | 10,879.50 | 3,320.00 | ||
| 2014-12-31 | 10,504.00 | 3,201.00 | ||
| 2013-12-31 | 10,209.00 | 5,180.00 | ||
| 2013-09-30 | 10,223.62 | 4,668.85 | 372.80 | |
| 2012-12-31 | 10,400.00 | 4,542.00 |
*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.
- HK Electric Investments and HK Electric Investments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- HK Electric Investments and HK Electric Investments used its assets less efficiently than the HK Electric Utilities industry average last year based on Return on Assets.
- HK Electric Investments and HK Electric Investments's use of capital has not improved over the past 3 years (Return on Capital Employed).
Past performance checks
We assess HK Electric Investments and HK Electric Investments's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
HK Electric Investments and HK Electric Investments has a total score of 0/6, 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.
2638 Health
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 HK Electric Investments and HK Electric Investments's finances.
The net worth of a company is the difference between its assets and liabilities.
- HK Electric Investments and HK Electric Investments's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- HK Electric Investments and HK Electric Investments's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0x 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.
All data from HK Electric Investments and HK Electric Investments Company Filings, last reported 4 months ago.
| Date (Data in HKD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 48,743.00 | 41,965.00 | 95.00 |
| 2018-09-30 | 48,743.00 | 41,965.00 | 95.00 |
| 2018-06-30 | 49,228.00 | 41,525.00 | 764.00 |
| 2018-03-31 | 49,228.00 | 41,525.00 | 764.00 |
| 2017-12-31 | 49,722.00 | 41,371.00 | 1,715.00 |
| 2017-09-30 | 49,722.00 | 41,371.00 | 1,715.00 |
| 2017-06-30 | 48,370.00 | 40,395.00 | 389.00 |
| 2017-03-31 | 48,370.00 | 40,395.00 | 389.00 |
| 2016-12-31 | 49,905.00 | 39,679.00 | 379.00 |
| 2016-09-30 | 49,905.00 | 39,679.00 | 379.00 |
| 2016-06-30 | 48,297.00 | 40,960.00 | 334.00 |
| 2016-03-31 | 48,297.00 | 40,960.00 | 334.00 |
| 2015-12-31 | 49,012.00 | 47,217.00 | 6,174.00 |
| 2015-09-30 | 49,012.00 | 47,217.00 | 6,174.00 |
| 2015-06-30 | 48,504.00 | 47,373.00 | 4,704.00 |
| 2015-03-31 | 48,504.00 | 47,373.00 | 4,704.00 |
| 2014-12-31 | 49,191.00 | 47,869.00 | 4,642.00 |
| 2013-12-31 | 12,271.00 | 30,077.00 | 1,060.00 |
| 2013-09-30 | 14,026.37 | 27,082.47 | 37.07 |
| 2012-12-31 | 14,488.00 | 27,210.00 | 8.00 |
- HK Electric Investments and HK Electric Investments's level of debt (86.1%) 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 (243.5% vs 86.1% today).
- Debt is not well covered by operating cash flow (12%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
Financial health checks
We assess HK Electric Investments and HK Electric Investments's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) HK Electric Investments and HK Electric Investments has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
2638 Dividends
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
HK$2,000 of
HK Electric Investments and HK Electric Investments
shares you are expected to receive
HK$105
in your first year as a dividend.
Dividend Amount
- HK Electric Investments and HK Electric Investments's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
- HK Electric Investments and HK Electric Investments's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Hong Kong Electric Utilities Industry Average Dividend Yield | Market Cap Weighted Average of 6 Stocks | 4.1% |
| Hong Kong Market Average Dividend Yield | Market Cap Weighted Average of 968 Stocks | 3.6% |
| Hong Kong Minimum Threshold Dividend Yield | 10th Percentile | 1.2% |
| Hong Kong Bottom 25% Dividend Yield | 25th Percentile | 2.1% |
| Hong Kong Top 25% Dividend Yield | 75th Percentile | 5.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in HK$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.31 | 5.00 |
| 2020-12-31 | 0.32 | 10.00 |
| 2019-12-31 | 0.31 | 7.00 |
| Date (Data in HK$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-03 | 0.400 | 5.200 |
| 2019-03-19 | 0.400 | 5.066 |
| 2018-04-03 | 0.400 | 5.173 |
| 2018-03-13 | 0.400 | 5.301 |
| 2017-03-31 | 0.400 | 5.594 |
| 2017-03-21 | 0.400 | 5.686 |
| 2016-04-07 | 0.402 | 5.715 |
| 2016-03-15 | 0.402 | 5.880 |
| 2015-08-04 | 0.398 | 6.747 |
| 2015-07-14 | 0.398 | 7.385 |
| 2015-03-30 | 0.398 | 7.547 |
| 2014-08-05 | 0.331 | 6.378 |
| 2014-07-21 | 0.331 | 6.181 |
| 2014-04-10 | 0.000 | 0.000 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, HK Electric Investments and HK Electric Investments has been paying a dividend for less than 10 years.
- Dividend payments have increased, but HK Electric Investments and HK Electric Investments only paid a dividend in the past 5 years.
Income/ dividend checks
We assess HK Electric Investments and HK Electric Investments's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can HK Electric Investments and HK Electric Investments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) HK Electric Investments and HK Electric Investments has a total score of 1/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
2638 Management
CEO
| COMPENSATION | HK$16,400,000 |
| AGE | 68 |
| TENURE AS CEO | 5.4 years |
CEO Bio
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 the Chief Executive Officer and Executive Director at The Hongkong Electric Company, Limited and has been its Managing Director since January 2013. He serves as Chief Executive Officer of HK Electric Investments Limited and has been its Executive Director since September 23, 2013. He has been an Executive Director of Power Assets Holdings Limited since December 12, 2005. He served as Group Managing Director of Power Assets Holdings Limited from January 2013 to January 29, 2014 and served as its Director of Engineering, Planning & Development since March 2008. He served as General Manager of Corporate Development, Information Technology Services & Projects Division at Power Assets Holdings Limited since July 2003. Mr. Wan has been with the Hongkong Electric Group since 1978, holding positions of Chief Electrical Engineer of HEC and Deputy General Manager of Associated Technical Services Limited, a wholly owned subsidiary of the Power Assets Holdings Limited. He served as the Chief Executive Officer of Powercor Australia Limited from September 2000 to June 2003 and CitiPower Pty. from August 2002 to June 2003. He has been a Director of South Eastern Power Networks Plc since February 8, 2013. He has been Director of UK Power Networks Holdings Limited since February 8, 2013. He serves as Director of SA Power Networks, Powercor Network Services Pty Ltd. and ETSA Utilities Finance Pty Ltd. He serves as a Non-Executive Director at Victoria Power Networks (Finance) Pty Limited. He serves as a Director of Eastern Power Networks plc and London Power Networks plc. He is the Vice Chairman of the Engineers Registration Board of the Hong Kong and a Member of Audit Committee of The University of Hong Kong. Mr. Wan holds a Bachelor of Science degree in Electrical Engineering from University of Hong Kong in November 1973 and is also a Chartered Engineer. He is an Honorary Fellow of the Energy Institute, a Fellow of the Institution of Engineering and Technology and a Fellow of the Hong Kong Institution of Engineers.
CEO Compensation
- Chi Tin's compensation has been consistent with company performance over the past year.
- Chi Tin's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the HK Electric Investments and HK Electric Investments management team in years:
- The average tenure for the HK Electric Investments and HK Electric Investments management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Canning Fok
Executive Chairman
HK$720K
67
Chi Tin Wan
CEO & Executive Director
HK$16M
68
5.4 yrs
Francis Cheng
Executive Director & Operations Director
HK$5M
61
Dominic Chan
Executive Director
HK$3M
55
Kim Man Wong
Chief Financial Officer
57
8.7 yrs
Alex Ng
Group Legal Counsel & Company Secretary
49
10.5 yrs
Mimi Yeung
General Manager of Public Affairs
54
15.8 yrs
Tak Chow Yee
General Manager of Corporate Development
63
42.8 yrs
Dennis Kwong
General Manager of Human Resources
53
4.9 yrs
Daobiao Chen
Executive Director
50
Board of Directors Tenure
Average tenure and age of the HK Electric Investments and HK Electric Investments board of directors in years:
- The tenure for the HK Electric Investments and HK Electric Investments board of directors is about average.
Board of Directors
Canning Fok
Executive Chairman
HK$720K
67
5.4 yrs
Chi Tin Wan
CEO & Executive Director
HK$16M
68
5.7 yrs
Victor Li
Deputy Chairman
HK$320K
54
4.5 yrs
Francis Cheng
Executive Director & Operations Director
HK$5M
61
5.4 yrs
Dominic Chan
Executive Director
HK$3M
55
6.9 yrs
Daobiao Chen
Executive Director
50
1 yrs
Donald Jeffrey Roberts
Independent Non-Executive Director
HK$170K
66
5.4 yrs
Ronald Joseph Arculli
Non Executive Director
HK$180K
79
5.4 yrs
Alex Fong
Independent Non Executive Director
HK$110K
62
5.4 yrs
Francis Lee
Independent Non-Executive Director
HK$160K
77
5.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (HK$) | Value (HK$) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess HK Electric Investments and HK Electric Investments's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) HK Electric Investments and HK Electric Investments 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.
2638 News
Simply Wall St News
Can HK Electric Investments and HK Electric Investments Limited (HKG:2638) Improve Its Returns?
We'll use ROE to examine HK Electric Investments and HK Electric Investments Limited (HKG:2638), by way of a worked example. … HK Electric Investments and HK Electric Investments has a ROE of 6.3%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Do Investors Need To Know About HK Electric Investments and HK Electric Investments Limited's (HKG:2638) Long Term Outlook?
The latest earnings update HK Electric Investments and HK Electric Investments Limited (HKG:2638) released in December 2018a
Simply Wall St - – Full articleHere's What HK Electric Investments and HK Electric Investments Limited's (HKG:2638) P/E Is Telling Us
We'll look at HK Electric Investments and HK Electric Investments Limited's (HKG:2638) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, HK Electric Investments and HK Electric Investments's P/E ratio is 23.34. … How Do I Calculate HK Electric Investments and HK Electric Investments's Price To Earnings Ratio
Simply Wall St - – Full articleWhat Should You Know About HK Electric Investments and HK Electric Investments Limited's (HKG:2638) Growth?
After HK Electric Investments and HK Electric Investments Limited's (HKG:2638) earnings announcement on 31 December 2018, … as a -17% fall in profits is expected in the upcoming year.
Simply Wall St - – Full articleShould You Worry About HK Electric Investments and HK Electric Investments Limited's (HKG:2638) CEO Pay?
Chi Wan has been the CEO of HK Electric Investments and HK Electric Investments Limited (HKG:2638) since 2013. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … Our data indicates that HK Electric Investments and HK Electric Investments Limited is worth HK$72b, and total annual CEO compensation is HK$16m.
Simply Wall St - – Full articleAre HK Electric Investments and HK Electric Investments Limited's (HKG:2638) Interest Costs Too High?
Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as HK Electric Investments and HK Electric Investments Limited (HKG:2638), with a market cap of HK$71b, often get neglected by retail investors. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … View our latest analysis for HK Electric Investments and HK Electric Investments
Simply Wall St - – Full articleShould HK Electric Investments and HK Electric Investments Limited (HKG:2638) Focus On Improving This Fundamental Metric?
We'll use ROE to examine HK Electric Investments and HK Electric Investments Limited (HKG:2638), by way of a worked example. … Over the last twelve months HK Electric Investments and HK Electric Investments has recorded a ROE of 6.7%. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs HK Electric Investments and HK Electric Investments Limited (HKG:2638) A Good Dividend Stock?
Historically, HK Electric Investments and HK Electric Investments Limited (HKG:2638) has paid dividends to shareholders, and these days it yields 4.9%. … Does HK Electric Investments and HK Electric Investments tick all the boxes of a great dividend stock? … See our latest analysis for HK Electric Investments and HK Electric Investments?
Simply Wall St - – Full articleWhat Should You Know About HK Electric Investments and HK Electric Investments Limited's (HKG:2638) Capital Returns?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … The formula for calculating the return on capital employed is:
Simply Wall St - – Full articleShould You Be Pleased About The CEO Pay At HK Electric Investments and HK Electric Investments Limited's (HKG:2638)
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Chi Wan's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that HK Electric Investments and HK Electric Investments Limited has a market cap of HK$67b, and is paying total annual CEO compensation of HK$16m
Simply Wall St - – Full article2638 Company Info
Description
HK Electric Investments and HK Electric Investments Limited, a vertically integrated power utility, generates, transmits, distributes, and supplies electricity in Hong Kong Island and Lamma Island. As of December 31, 2018, the company operated 6 coal-fired units, 2 gas-fired units, 5 oil-fired gas turbine units, 1 wind turbine, and 1 solar power system with an installed capacity of 3,237 MW. It also operates a transmission and distribution network of 6,457 kilometers of underground and submarine cables; and 3,963 substations, as well as served 579,000 residential, commercial, and industrial customers. The company was founded in 1889 and is headquartered in Hong Kong, Hong Kong.
Details
| Name: | HK Electric Investments and HK Electric Investments Limited |
| 2638 | |
| Exchange: | SEHK |
| Founded: | 1889 |
| HK$67,155,120,000 | |
| 8,836,200,000 | |
| Website: | http://www.hkelectric.com |
| Address: |
HK Electric Investments and HK Electric Investments Limited Hongkong Electric Centre, 44 Kennedy Road, Hong Kong, Hong Kong |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SEHK | 2638 | Stapled Securities | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 29. Jan 2014 | |
| OTCPK | HKCV.F | Stapled Securities | Pink Sheets LLC | US | USD | 29. Jan 2014 | |
| DB | HKT | Stapled Securities | Deutsche Boerse AG | DE | EUR | 29. Jan 2014 |
Number of employees
Current staff
Industry
| Electric Utilities | |
| Utilities |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/19 13:06 |
| End of day share price update: | 2019/05/17 00:00 |
| Last estimates confirmation: | 2019/05/12 |
| Last earnings filing: | 2019/04/03 |
| 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.
