CLP Holdings (CLPHY) AI Stock Analysis

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CLP Holdings

(OTC:CLPHY)

70Outperform

CLP Holdings shows robust financial performance, supported by solid earnings growth and strategic investments in renewable energy. The stable technical indicators and reasonable valuation further enhance its attractiveness. Despite some challenges, such as increased liabilities and operational issues in certain markets, the overall outlook remains positive due to strong earnings potential and strategic initiatives.

CLP Holdings (CLPHY) vs. S&P 500 (SPY)

Market Cap

$21.15B

Dividend Yield4.42%

Average Volume (3M)6.13K

Price to Earnings (P/E)14.1

Beta (1Y)0.21

Revenue Growth4.71%

EPS Growth77.16%

CountryUS

Employees7,069

SectorUtilities

Sector Strength88

IndustryRegulated Electric

Share Statistics

EPS (TTM)0.59

Shares Outstanding2,526,450,700

10 Day Avg. Volume0

30 Day Avg. Volume6,133

Financial Highlights & Ratios

PEG Ratio0.18

Price to Book (P/B)N/A

Price to Sales (P/S)1.46

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

CLP Holdings Business Overview & Revenue Model

Company DescriptionCLP Holdings Limited (CLPHY) is a leading investor and operator in the energy sector, primarily focused on electricity generation, transmission, and distribution. Founded in 1901 and headquartered in Hong Kong, CLP Holdings operates across several countries in the Asia-Pacific region. The company is engaged in a diverse range of energy-related businesses, including conventional power generation, renewable energy projects, energy retailing, and infrastructure investments. CLP Holdings is committed to sustainability and innovation, aiming to provide reliable and clean energy solutions to its customers.

How the Company Makes MoneyCLP Holdings makes money through a diversified revenue model primarily centered around its electricity generation, transmission, and distribution services. The company's key revenue streams include the sale of electricity to residential, commercial, and industrial customers across its operational regions, with a significant portion of revenue generated from regulated electricity markets in Hong Kong. CLP also invests in renewable energy projects, such as wind, solar, and hydroelectric power, contributing to its income through the sale of clean energy. Additionally, the company earns revenue from infrastructure investments and energy retailing services. Strategic partnerships and joint ventures in various energy projects further bolster its earnings, allowing for shared investment risks and enhanced market presence.

CLP Holdings Financial Statement Overview

Summary

CLP Holdings has shown improved profitability and steady revenue growth, with a solid income statement score of 75. The balanced capital structure is reflected in a balance sheet score of 68, while cash flow stability is indicated by a cash flow score of 70. Challenges include managing liabilities and ensuring consistent free cash flow.

Income Statement

Positive

CLP Holdings has shown a solid revenue growth rate of 4.36% from 2023 to 2024, which is a positive indicator. The gross profit margin improved to 32.25% in 2024, indicating efficient cost management. EBIT and EBITDA margins have also improved to 16.38% and 29.42%, respectively, reflecting stronger operating performance. The net profit margin increased to 13.06%, showing enhanced profitability. However, the volatility in these metrics over the years, especially the sharp fluctuations in net income, suggests a need for more stability.

Balance Sheet

Positive

The debt-to-equity ratio stands at 0.63 in 2024, indicating a moderate level of leverage. Return on equity improved to 11.41%, highlighting efficient use of equity to generate profits. The equity ratio of 44.52% suggests a balanced capital structure. Nonetheless, the overall liabilities have been increasing, which could pose a risk if not managed effectively.

Cash Flow

Positive

Operating cash flow is robust at 23,140 million in 2024, and the free cash flow has shown positive growth after a dip in previous years. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has fluctuated significantly, signaling potential volatility in cash flows.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
87.95B	90.96B	87.17B	100.66B	83.96B	79.59B
	Gross Profit
21.53B	29.33B	28.53B	18.86B	26.63B	28.04B
	EBIT
14.34B	14.90B	9.32B	8.03B	11.10B	14.72B
	EBITDA
22.68B	26.76B	21.07B	12.18B	22.13B	25.60B
	Net Income Common Stockholders
7.55B	11.88B	6.79B	1.49B	8.63B	11.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.78B	4.98B	5.19B	4.25B	7.96B	11.17B
	Total Assets
211.69B	233.71B	229.05B	236.03B	239.81B	234.23B
	Total Debt
84.03B	65.30B	57.72B	59.45B	58.43B	54.57B
	Net Debt
79.24B	60.33B	52.53B	55.20B	50.53B	44.41B
	Total Liabilities
124.20B	123.59B	116.67B	120.33B	113.10B	108.26B
	Stockholders Equity
87.36B	104.06B	106.22B	109.39B	116.92B	116.09B
Cash Flow		Free Cash Flow
13.53B	6.84B	10.39B	-2.90B	4.50B	11.01B
	Operating Cash Flow
27.84B	23.14B	23.57B	12.73B	18.08B	22.37B
	Investing Cash Flow
-16.87B	-16.22B	-9.47B	-15.38B	-11.82B	-10.08B
	Financing Cash Flow
-9.39B	-7.04B	-13.14B	-987.00M	-8.48B	-10.21B

CLP Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.42

Price Trends

50DMA

8.17

Positive

100DMA

8.16

Positive

200DMA

8.29

Positive

Market Momentum

MACD

0.01

Negative

RSI

59.92

Neutral

STOCH

95.09

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLPHY, the sentiment is Positive. The current price of 8.42 is above the 20-day moving average (MA) of 8.16, above the 50-day MA of 8.17, and above the 200-day MA of 8.29, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 95.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLPHY.

CLP Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMS	78 Outperform	$22.04B	22.14	12.70%	2.83%	0.71%	11.07%
EIX	72 Outperform	$22.26B	17.46	8.83%	5.48%	7.72%	6.49%
CLPHY	70 Outperform	$21.15B	14.06	11.36%	4.42%	4.71%	77.16%
FE	70 Outperform	$24.65B	25.20	8.54%	3.99%	4.68%	-11.66%
CNP	66 Neutral	$24.28B	23.55	10.02%	2.23%	-0.61%	15.54%
ES	63 Neutral	$21.31B	25.57	5.56%	4.99%	-0.08%	―
Sector *	63 Neutral	$8.55B	12.13	6.36%	4.42%	3.05%	-9.27%

* Utilities Sector Average

Performance Comparison

CLPHY

CLP Holdings

8.42

0.77

10.07%

CNP

Centerpoint Energy

37.90

9.36

32.80%

CMS

CMS Energy

74.14

15.53

26.50%

EIX

Edison International

58.20

-9.75

-14.35%

FirstEnergy

42.28

5.30

14.33%

Eversource Energy

58.53

0.78

1.35%

CLP Holdings Earnings Call Summary

Earnings Call Date: Feb 24, 2025 | % Change Since: 3.44% | Next Earnings Date: May 19, 2025

Earnings Call Sentiment Positive

The earnings call reflected a generally positive sentiment with strong financial growth and strategic progress in renewable energy projects, despite some operational challenges and competitive pressures in certain markets.

Highlights

Strong Financial Performance in 2024

Group's operating earnings before fair value movements increased by 8% year-on-year to nearly HKD11 billion. Total earnings rose significantly by 76% to HKD11.7 billion.

Increased Dividend

The Board recommended a fourth interim dividend of HKD1.26 per share, making the 2024 total dividend HKD3.15 per share, an increase of 1.6% from the prior year, providing a yield of 4.8%.

Expansion in Renewable Energy Projects

Construction of CLP China's largest wind and solar projects (300 MW each), the largest solar project in India (300 MW), and EnergyAustralia's largest battery (350 MW) were highlighted as significant achievements.

Operational Excellence

Hong Kong maintained network reliability at 99.999%, and Jhajjar thermal plant in India achieved record-level efficiency.

Strategic Review and Growth Momentum

Completed major gas infrastructure in Hong Kong, paving the way for coal phase-down; strategic review completed with a focus on delivering cleaner, more reliable energy and stable earnings.

Lowlights

Slight Increase in Low-Impact Injuries

An increase in low-impact injuries was noted, largely due to more planned outages and construction activities.

Reduction in Customer Numbers in Australia

Competitive market conditions in Australia led to a reduction in customer numbers despite overall positive performance in EnergyAustralia.

Decreased Generation Capacity

The retirement of 3 coal units in Hong Kong and exits from Shandong Zhonghuan coal portfolio resulted in decreased generation capacity.

Challenges in Mainland China

Reduced contribution from Mainland China due to lower nuclear tariffs and higher costs, alongside lower generation at Daya Bay due to a planned outage.

Company Guidance

During the CLP's 2024 Annual Results Briefing, the company presented strong financial performance, highlighted by an 8% year-on-year increase in operating earnings before fair value movements, reaching nearly HKD11 billion. Total earnings significantly rose by 76% to HKD11.7 billion. The Board recommended a fourth interim dividend of HKD1.26 per share, bringing the total dividend for 2024 to HKD3.15 per share, an increase of 1.6% from the previous year. This provides a yield of 4.8% based on the share price at the end of December. The company maintained exceptional network reliability in Hong Kong at 99.999%, despite challenges from extreme weather. Operational achievements included the completion of major gas infrastructure in Hong Kong and record generation at the Yangjiang nuclear plant in China. With HKD11 billion in CapEx planned for 2024, CLP aims to advance noncarbon projects, including significant renewable energy developments in China and India. The strategic review completed by the company underpins its ambition to deliver cleaner, more reliable energy with stable earnings and dividend growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.