With Stable Dividends, Power Assets Is a Proxy Hong Kong Bond

Power Assets Holdings, or PAH, in the absence of acquisitions, is likely to see mid-single-digit earnings growth and stable cash flow that should maintain its dividend payout. PAH’s key utility assets include UK-based power and gas networks as well as Australian utility distribution companies. Together, the UK and Australian assets made up 75% of profit in first-half 2025. As a result, PAH’s earnings and fair value estimates are sensitive to currency fluctuations. However, we don’t think the lower translated income will materially impact dividend payouts given PAH's net cash position. We think PAH's dividend is likely to be flat at HKD 2.82 per share during our five-year projected period.