6

Power Assets HoldingsSEHK:6 Stock Report

Market Cap

HK$98.7b

7D

-2.5%

1Y

10.4%

Updated

19 Sep, 2021

Data

Company Financials +
6 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends4/6

6 Overview

Power Assets Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally.

Power Assets Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Power Assets Holdings
Historical stock prices
Current Share PriceHK$46.25
52 Week HighHK$39.20
52 Week LowHK$51.35
Beta0.51
1 Month Change-6.94%
3 Month Change-3.85%
1 Year Change10.38%
3 Year Change-16.29%
5 Year Change-39.82%
Change since IPO232.73%

Recent News & Updates

Shareholder Returns

6HK Electric UtilitiesHK Market
7D-2.5%-2.0%-4.6%
1Y10.4%5.8%5.2%

Return vs Industry: 6 exceeded the Hong Kong Electric Utilities industry which returned 5.8% over the past year.

Return vs Market: 6 exceeded the Hong Kong Market which returned 5.2% over the past year.

Price Volatility

Is 6's price volatile compared to industry and market?
6 volatility
6 Beta0.51
Industry Beta0.56
Market Beta1

Stable Share Price: 6 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 6's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188913Charles Tsaihttps://www.powerassets.com

Power Assets Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. The company generates energy from thermal, renewable energy, and waste sources. It also distributes gas; transmits oil; holds property and deposits; and provides consulting, investing, trust administration, and management services.

Valuation

Is Power Assets Holdings undervalued compared to its fair value and its price relative to the market?

28.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6 (HK$46.25) is trading below our estimate of fair value (HK$64.97)

Significantly Below Fair Value: 6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6 is poor value based on its PE Ratio (15.5x) compared to the Hong Kong Electric Utilities industry average (15.1x).

PE vs Market: 6 is poor value based on its PE Ratio (15.5x) compared to the Hong Kong market (10x).


Price to Earnings Growth Ratio

PEG Ratio: 6 is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: 6 is overvalued based on its PB Ratio (1.1x) compared to the HK Electric Utilities industry average (1x).


Future Growth

How is Power Assets Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6's forecast earnings growth (4.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 6's earnings (4.4% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 6's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6's revenue (1% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 6's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6's Return on Equity is forecast to be low in 3 years time (8.3%).


Past Performance

How has Power Assets Holdings performed over the past 5 years?

-4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6 has high quality earnings.

Growing Profit Margin: 6's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: 6's earnings have declined by 4.2% per year over the past 5 years.

Accelerating Growth: 6's earnings growth over the past year (13.9%) exceeds its 5-year average (-4.2% per year).

Earnings vs Industry: 6 earnings growth over the past year (13.9%) exceeded the Electric Utilities industry 7.3%.


Return on Equity

High ROE: 6's Return on Equity (7.4%) is considered low.


Financial Health

How is Power Assets Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6's short term assets (HK$3.9B) exceed its short term liabilities (HK$3.7B).

Long Term Liabilities: 6's short term assets (HK$3.9B) do not cover its long term liabilities (HK$4.5B).


Debt to Equity History and Analysis

Debt Level: 6's debt to equity ratio (4.2%) is considered satisfactory.

Reducing Debt: 6's debt to equity ratio has reduced from 7.5% to 4.2% over the past 5 years.

Debt Coverage: 6's debt is well covered by operating cash flow (23.3%).

Interest Coverage: 6's interest payments on its debt are well covered by EBIT (18.7x coverage).


Balance Sheet


Dividend

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

6.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6's dividend (6.1%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 6's dividend (6.1%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.76%).


Stability and Growth of Payments

Stable Dividend: 6's dividends per share have been stable in the past 10 years.

Growing Dividend: 6's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.4%), 6's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6's dividends in 3 years are forecast to be covered by earnings (82.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.5yrs

Average board tenure


CEO

Charles Tsai (64 yo)

7.67yrs

Tenure

HK$4,900,000

Compensation

Mr. Tsai Chao Chung, also known as Charles, BAppSc (Mech Eng), BSME, CPEng, has been the Chief Executive Officer and Executive Director of Power Assets Holdings Limited since January 29, 2014. Mr. Tsai ser...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD629.71K) is below average for companies of similar size in the Hong Kong market ($USD1.04M).

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


Board Members

Experienced Board: 6's board of directors are seasoned and experienced ( 12.5 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

Power Assets Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Power Assets Holdings Limited
  • Ticker: 6
  • Exchange: SEHK
  • Founded: 1889
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: HK$98.710b
  • Shares outstanding: 2.13b
  • Website: https://www.powerassets.com

Number of Employees


Location

  • Power Assets Holdings Limited
  • Cheung Kong Center
  • Unit 2005
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 10:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.