CLP's Hong Kong Activities Underpin Cash Flow; Improving Capital Allocation

Over the next several years, we expect CLP to continue to sell or retire its coal-fired power plants and add renewable power plants and energy storage units to its portfolio. As of the end of 2024, CLP has more than 22 gigawatts in installed capacity. It plans to double its noncarbon capacity in China and India by 2029, which should help mitigate the shutdown and sales of its fossil fuel power plants. In the meantime, we expect CLP’s earnings and cash flow to continue to be underpinned by its integrated power activities in Hong Kong, which make up more than 60% of net profit.