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Power Assets Holdings Ltd 00006

Morningstar Rating
HKD 41.30 −0.80 (1.90%)
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Company Report

Power Assets Sees Improved All-Round Utility Earnings

Power Assets Holdings, or PAH, in the absence of acquisitions, is likely to see slow 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 66% of profit in 2023. As a result, PAH’s earnings and fair value estimates are sensitive to currency fluctuations. A weaker GBP has impeded earnings gains; 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.

Price vs Fair Value

00006 is trading within a range we consider fairly valued.
Price
HKD 41.30
Fair Value
HKD 15.80
Uncertainty
Low
1-Star Price
HKD 58.88
5-Star Price
HKD 94.56
Economic Moat
Gvrmv
Capital Allocation
Qrykymmd

Bulls Say, Bears Say

Bulls

PAH will resume dividend growth once currency headwinds subside.

Bears

Rising energy bills in weak economies will lead regulators to cut allowed returns in the UK, and Australia, more than expected.

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Trading Information

Previous Close Price
HKD 42.10
Day Range
HKD 41.0541.95
52-Week Range
HKD 36.1048.15
Bid/Ask
HKD 41.30 / HKD 41.35
Market Cap
HKD 88.01 Bil
Volume/Avg
6.1 Mil / 2.6 Mil

Key Statistics

Price/Earnings (Normalized)
13.15
Price/Sales
68.12
Dividend Yield (Trailing)
6.83%
Dividend Yield (Forward)
6.83%
Total Yield
6.83%

Company Profile

Power Assets Holdings is an investment holding company with a focus on regulated utility assets. The firm owns a portfolio of regulated electricity and gas assets and similarly stable utilities in Hong Kong, the UK, Australia, Canada, Europe, and New Zealand. Profit from its regulated assets make up around 80% of total income, with contribution from its UK and Australian assets totaling more than 60% of group profit. The firm is part of CK Hutchison Holdings, a Hong Kong-based multinational conglomerate, and is currently 36% owned by CK Infrastructure Holdings.
Sector
Utilities
Industry
Utilities - Independent Power Producers
Stock Style Box
Large Core
Total Number of Employees
13

Competitors

Valuation

Metric
00006
00002
NGG
Price/Earnings (Normalized)
13.1515.5610.83
Price/Book Value
0.991.561.23
Price/Sales
68.121.841.85
Price/Cash Flow
55.568.816.69
Price/Earnings
00006
00002
NGG

Financial Strength

Metric
00006
00002
NGG
Quick Ratio
1.330.410.64
Current Ratio
1.340.630.91
Interest Coverage
43.206.672.63
Quick Ratio
00006
00002
NGG

Profitability

Metric
00006
00002
NGG
Return on Assets (Normalized)
7.13%4.34%3.03%
Return on Equity (Normalized)
7.72%9.70%9.72%
Return on Invested Capital (Normalized)
7.37%6.46%5.36%
Return on Assets
00006
00002
NGG
See how this stock stacks up to its competitors with Morningstar Investor

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