CLP Holdings Limited (0002.HK) stock analysis

In our weekly check, CLP Holdings Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4.

About CLP Holdings Limited

CLP Holdings Limited is an Utilities company (Regulated Electric) based in Hong Kong, listed on HKSE as 0002.HK.

What our checks show for 0002.HK

Red flags

• Operating profit does not cover the interest bill (0.9x): interest is paid from cash or new debt.
• The gross margin fell by 16.6 points, to 15.1%: costs are rising faster than prices.
• Revenue fell 4.4% a year over the last 3 years.
• The dividend takes 585% of profit: little cushion if profit falls.

Warning signs

• Analysts expect only about 0.8% a year of growth in revenue.
• The stock has fallen as much as 47% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 6.7%.

Strengths

• The net margin rose by 1.8 points over 5 years, to 12.1%.
• Operating cash flow is 2.29x net profit: the profit arrives as real cash.
• Earnings per share grew 124% a year over the last 3 years.
• Net profit grew 116% a year over the last 3 years.
• A large company: market value $24.5 billion.
• The price moves calmly: 12.4% annual volatility.

Similar companies

NEE · 1038.HK · AXIA3.SA · SO · DUK · NGG

Questions

What grade does CLP Holdings Limited (0002.HK) have?

In our weekly check, CLP Holdings Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0002.HK stock?

This week's biggest flags for CLP Holdings Limited: Weak interest cover, Gross margin falling, Weak revenue growth. In total 8 of 25 checks show a warning or a red flag.

What does CLP Holdings Limited do?

CLP Holdings Limited is an Utilities company (Regulated Electric) based in Hong Kong, listed on HKSE as 0002.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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