CLP's first-half 2026 underlying net income increased 9% to HKD 5.6 billion on stronger performances across all geographies and corporate cost reductions. Dividends were flat at HKD 1.26 per share.
CLP is highly defensive, underpinned by its regulated Hong Kong business that comprises more than two-thirds of earnings, and has a strong balance sheet.
Bears
CLP’s ex-Hong Kong returns face downside as favorable policies for renewable energy diminish. Closure of coal power stations is also a headwind.
CLP Holdings is the larger of the two electric utility companies in Hong Kong, serving 80% of the territory’s population. It generates, transmits, and distributes electricity to about 2.8 million customer accounts in Kowloon and the New Territories through its wholly owned network. The business is regulated by the Hong Kong government, with a permitted return on net fixed assets of 8% to December 2033. About 70% of group EBITDA is from Hong Kong, its highest-quality business. Besides Hong Kong, the company has expanded overseas, with generation and energy retail assets in Australia and generation assets in China, India, Taiwan, and Southeast Asia.