CLP Holdings Ltd

00002: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$21.00	Wythm	Tgycgtyy

CLP Earnings: Little to Surprise Following Recent Guidance; Shares are Fairly Valued

Lorraine Tan

Feb 27, 2024

We maintain our fair value estimate of HKD 63 for CLP Holdings following 2023 earnings largely within our and market expectations. CLP had recently warned that it would write off HKD 5.9 billion of its Australian retail energy business. Hence, the 2023 net profit of HKD 6.65 billion was well within CLP's guidance and our forecast. Our bottom-line estimates through 2027 have changed little. We think CLP is fairly valued at the current share price, trading on 12.8 times 2024 price/earnings and 1.5 times price/book. The dividend is unchanged at HKD 3.10 per share, representing a 5% dividend yield.

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