Power Assets Holdings Limited (0006.HK) stock analysis

In our weekly check, Power Assets Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7.

About Power Assets Holdings Limited

Power Assets Holdings Limited is an Utilities company (Independent Power Producers) based in Hong Kong, listed on HKSE as 0006.HK.

What our checks show for 0006.HK

Red flags

• Operating profit does not cover the interest bill (0.3x): interest is paid from cash or new debt.
• The gross margin fell by 37 points, to 54.3%: costs are rising faster than prices.
• Operating cash flow is only 0.14x net profit: part of the reported profit does not arrive as cash.
• Analysts expect revenue to shrink about 7.3% a year.
• Revenue fell 15.2% a year over the last 3 years.
• The dividend takes 756% of profit: little cushion if profit falls.
• Return on capital (ROCE) is only 0.3%.

Warning signs

• The stock has fallen as much as 55% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• The net margin rose by 328 points over 5 years, to 809%.
• Analysts expect the net margin to improve by 413 points from today's 809%.
• The company keeps 809% of its revenue as net profit.
• Free cash flow is 115% of revenue: cash for dividends, buybacks or growth.
• The price is 7.2 times earnings (P/E), reasonable for its growth.
• A large company: market value $16.45 billion.

Similar companies

0836.HK · CEG · 1816.HK · VST · NRG · GULF-R.BK

Questions

What grade does Power Assets Holdings Limited (0006.HK) have?

In our weekly check, Power Assets Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0006.HK stock?

This week's biggest flags for Power Assets Holdings Limited: Weak interest cover, Gross margin falling, Profits not backed by cash. In total 9 of 25 checks show a warning or a red flag.

What does Power Assets Holdings Limited do?

Power Assets Holdings Limited is an Utilities company (Independent Power Producers) based in Hong Kong, listed on HKSE as 0006.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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