SEHK:6

Stock Analysis Report

Power Assets Holdings

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Power Assets Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

6

3.0%

HK Electric Utilities

3.1%

HK Market


1 Year Return

3.3%

6

-4.1%

HK Electric Utilities

0.5%

HK Market

Return vs Industry: 6 exceeded the Hong Kong Electric Utilities industry which returned -4.1% over the past year.

Return vs Market: 6 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

6IndustryMarket
7 Day3.5%3.0%3.1%
30 Day3.5%0.9%-1.8%
90 Day-6.2%-7.9%-4.8%
1 Year8.8%3.3%-0.1%-4.1%4.1%0.5%
3 Year13.2%-24.0%9.8%-8.5%15.8%4.2%
5 Year19.4%-24.7%34.2%3.0%18.9%-0.9%

Price Volatility Vs. Market

How volatile is Power Assets Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

15.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 6 (HK$54.75) is trading above our estimate of fair value (HK$50.24)

Significantly Undervalued: 6 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6 is poor value based on its PE Ratio (16x) compared to the Electric Utilities industry average (14.7x).

PE vs Market: 6 is poor value based on its PE Ratio (16x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 6 is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: 6 is overvalued based on its PB Ratio (1.4x) compared to the HK Electric Utilities industry average (1.4x).


Next Steps

Future Growth

How is Power Assets Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6's forecast earnings growth (2.5% per year) is above the savings rate (2%).

Earnings vs Market: 6's earnings (2.5% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 6's revenue (1.3% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 6's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 6's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

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

-51.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6's earnings have declined by -51.5% per year over the past 5 years.

Accelerating Growth: 6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6 had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (-14.7%).


Return on Equity

High ROE: 6's Return on Equity (8.8%) is considered low.


Return on Assets

ROA vs Industry: 6 has a higher Return on Assets than the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: 6 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Power Assets Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6's short term assets (HK$4.1B) do not cover its short term liabilities (HK$4.3B)

Long Term Liabilities: 6's short term assets (4.1B) exceeds its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: 6's debt to equity ratio (4.4%) is considered satisfactory

Reducing Debt: 6's debt to equity ratio has reduced from 9.3% to 4.4% over the past 5 years.

Debt Coverage: 6's debt is well covered by operating cash flow (67.7%).

Interest Coverage: 6 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6's debt is covered by short term assets (assets are 1.121350x debt).


Next Steps

Dividend

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

5.11%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 6's dividend (5.11%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 6's dividend (5.11%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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: At its current payout ratio (81.8%), 6's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6's dividends in 3 years are forecast to be covered by earnings (80.4% payout ratio).


Next Steps

Management

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

13.9yrs

Average board tenure


CEO

Charles Tsai (62yo)

5.8yrs

Tenure

HK$4,910,000

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 ($USD625.89K) is about average for companies of similar size in the Hong Kong market ($USD803.55K).

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


Board Age and Tenure

13.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 6's board of directors are seasoned and experienced ( 13.9 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$2,318,334,07517 Jan 19
CK Hutchison Holdings Limited
EntityCompany
Shares43,800,000
Max PriceHK$52.93

Ownership Breakdown


Management Team

  • Neil McGee (68yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: HK$70.00k
  • Ivan Chan (56yo)

    Chief Financial Officer

    • Tenure: 7.4yrs
  • Canning Fok (68yo)

    Chairman of the Board

    • Tenure: 13.9yrs
    • Compensation: HK$120.00k
  • Dominic Chan (56yo)

    Executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$5.14m
  • Andrew John Hunter (61yo)

    Executive Director

    • Tenure: 20.8yrs
    • Compensation: HK$150.00k
  • Chi Tin Wan (69yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: HK$70.00k
  • Charles Tsai (62yo)

    CEO & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$4.91m
  • Alex Ng (50yo)

    Group Legal Counsel & Company Secretary

    • Tenure: 0yrs

Board Members

  • Chung Hin Wong (86yo)

    Independent Non-Executive Director

    • Tenure: 34.4yrs
    • Compensation: HK$160.00k
  • Victor Li (55yo)

    Non-Executive Director

    • Tenure: 25.4yrs
    • Compensation: HK$70.00k
  • Neil McGee (68yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: HK$70.00k
  • Canning Fok (68yo)

    Chairman of the Board

    • Tenure: 13.9yrs
    • Compensation: HK$120.00k
  • Dominic Chan (56yo)

    Executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$5.14m
  • Ralph Raymond Shea (85yo)

    Independent Non-Executive Director

    • Tenure: 34.4yrs
    • Compensation: HK$160.00k
  • Andrew John Hunter (61yo)

    Executive Director

    • Tenure: 20.8yrs
    • Compensation: HK$150.00k
  • Chi Tin Wan (69yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: HK$70.00k
  • Charles Tsai (62yo)

    CEO & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$4.91m
  • Albert Ip (67yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$140.00k

Company Information

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


Key Information

  • Name: Power Assets Holdings Limited
  • Ticker: 6
  • Exchange: SEHK
  • Founded: 1976
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: HK$116.958b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HGKG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1981
HGKG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1983
HEHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1983
6SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1983
6SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1983
6SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1983

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:36
End of Day Share Price2019/10/17 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.