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

-1.6%

6

-0.5%

HK Electric Utilities

-2.7%

HK Market


1 Year Return

-4.4%

6

-9.6%

HK Electric Utilities

-9.4%

HK Market

6 outperformed the Electric Utilities industry which returned -9.6% over the past year.

6 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

6IndustryMarket
7 Day-1.6%-0.5%-2.7%
30 Day-3.3%-1.5%2.0%
90 Day-6.7%-9.2%-5.8%
1 Year0.7%-4.4%-5.8%-9.6%-6.1%-9.4%
3 Year1.7%-31.6%2.9%-14.3%14.3%2.7%
5 Year20.7%-23.9%36.9%5.1%16.7%-2.8%

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

3 months ago | Simply Wall St

Power Assets Holdings Limited (HKG:6): Financial Strength Analysis

Valuation

Is Power Assets Holdings undervalued based on future cash flows and its price relative to the stock market?

15.36x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Power Assets Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Power Assets Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Power Assets Holdings is overvalued based on earnings compared to the HK Electric Utilities industry average.

Power Assets Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Power Assets Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Power Assets Holdings is overvalued based on assets compared to the HK Electric Utilities industry average.


Next Steps

Future Growth

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

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Power Assets Holdings's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

Power Assets Holdings's earnings are expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Power Assets Holdings's revenue growth is positive but not above the Hong Kong market average.

Power Assets Holdings's earnings growth is positive but not above the Hong Kong market average.

Power Assets Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Power Assets Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Power Assets Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Power Assets Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Power Assets Holdings's 1-year earnings growth is negative, it can't be compared to the HK Electric Utilities industry average.


Return on Equity

Power Assets Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Power Assets Holdings used its assets more efficiently than the HK Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Power Assets Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Power Assets Holdings's financial position?


Financial Position Analysis

Power Assets Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Power Assets Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Power Assets Holdings's level of debt (4.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (9.3% vs 4.4% today).

Debt is well covered by operating cash flow (67.7%, greater than 20% of total debt).

Power Assets Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

5.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Power Assets Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Power Assets Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.17%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


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?

13.8yrs

Average board tenure


CEO

Charles Tsai (62yo)

5.7yrs

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

Charles's remuneration is about average for companies of similar size in Hong Kong.

Charles's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

13.8yrs

Average Tenure

67.5yo

Average Age

The average tenure for the Power Assets Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


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: 7.3yrs
  • Canning Fok (68yo)

    Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: HK$120.00k
  • Dominic Chan (56yo)

    Executive Director

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

    Executive Director

    • Tenure: 20.7yrs
    • Compensation: HK$150.00k
  • Chi Tin Wan (69yo)

    Executive Director

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

    CEO & Executive Director

    • Tenure: 5.7yrs
    • 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: 34.3yrs
    • Compensation: HK$160.00k
  • Victor Li (55yo)

    Non-Executive Director

    • Tenure: 25.3yrs
    • Compensation: HK$70.00k
  • Neil McGee (68yo)

    Executive Director

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

    Chairman of the Board

    • Tenure: 13.8yrs
    • 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: 34.3yrs
    • Compensation: HK$160.00k
  • Andrew John Hunter (61yo)

    Executive Director

    • Tenure: 20.7yrs
    • Compensation: HK$150.00k
  • Chi Tin Wan (69yo)

    Executive Director

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

    CEO & Executive Director

    • Tenure: 5.7yrs
    • Compensation: HK$4.91m
  • Albert Ip (67yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • 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$113.009b
  • 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 Analysis2019/09/23 12:36
End of Day Share Price2019/09/23 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.