Power Assets Holdings Ltd 00006

Power Assets Earnings: No Surprises; Management Is Upbeat on Potential Acquisitions

Power Assets Holdings, or PAH, posted in-line 2023 earnings of HKD 6.0 billion, with dividend per share stable at HKD 2.82. An attractive dividend yield of 6.1% should support its share price, but we see limited growth in the absence of acquisitions. PAH and its parent, CKI Holdings, have not made a significant purchase since 2017. However, management is more upbeat than it has been in recent years that the current environment should yield some material purchases. Until these materialize and with minimal changes to our earnings forecast, our fair value estimate is little changed at HKD 48.60 per share.