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HK Electric Investments and HK Electric Investments

DB:HKT
Snowflake Description

Imperfect balance sheet with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HKT
DB
HK$66B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

HK Electric Investments and HK Electric Investments Limited, a vertically integrated power utility, generates, transmits, distributes, and supplies electricity in Hong Kong Island and Lamma Island. The last earnings update was 14 days ago. More info.


Add to Portfolio Compare Print
HKT Share Price and Events
7 Day Returns
-0.2%
DB:HKT
7.9%
Europe Electric Utilities
9.9%
DE Market
1 Year Returns
-2.3%
DB:HKT
-1.3%
Europe Electric Utilities
-17.5%
DE Market
HKT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HK Electric Investments and HK Electric Investments (HKT) -0.2% -5.6% -1.9% -2.3% 0.6% 41.8%
Europe Electric Utilities 7.9% -16.2% -12.7% -1.3% 21% -1.3%
DE Market 9.9% -16.6% -24.8% -17.5% -24.5% -28.1%
1 Year Return vs Industry and Market
  • HKT matched the Electric Utilities industry (-1.3%) over the past year.
  • HKT outperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
HKT
Industry
5yr Volatility vs Market

Value

 Is HK Electric Investments and HK Electric Investments undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HK Electric Investments and HK Electric Investments to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HK Electric Investments and HK Electric Investments.

DB:HKT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HKT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.254 (1 + (1- 25%) (65.31%))
0.583
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 6.07%)
4.47%

Discounted Cash Flow Calculation for DB:HKT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HK Electric Investments and HK Electric Investments is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:HKT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 4.47%)
2020 628.50 Analyst x2 601.63
2021 1,494.33 Analyst x3 1,369.30
2022 2,057.00 Analyst x3 1,804.30
2023 4,282.00 Analyst x1 3,595.40
2024 3,996.00 Analyst x1 3,211.82
2025 3,813.88 Est @ -4.56% 2,934.39
2026 3,687.75 Est @ -3.31% 2,716.04
2027 3,598.06 Est @ -2.43% 2,536.70
2028 3,532.60 Est @ -1.82% 2,384.07
2029 3,483.47 Est @ -1.39% 2,250.42
Present value of next 10 years cash flows HK$23,404.00
DB:HKT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$3,483.47 × (1 + -0.39%) ÷ (4.47% – -0.39%)
HK$71,455.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$71,455.70 ÷ (1 + 4.47%)10
HK$46,162.27
DB:HKT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$23,404.00 + HK$46,162.27
HK$69,566.27
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$69,566.27 / 8,836.20
HK$7.87
DB:HKT Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HKT represents 0.11446x of SEHK:2638
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11446x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 7.87 x 0.11446
€0.90
Value per share (EUR) From above. €0.90
Current discount Discount to share price of €0.85
= -1 x (€0.85 - €0.90) / €0.90
5.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HK Electric Investments and HK Electric Investments is available for.
Intrinsic value
5%
Share price is €0.8539 vs Future cash flow value of €0.90116
Current Discount Checks
For HK Electric Investments and HK Electric Investments to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HK Electric Investments and HK Electric Investments's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • HK Electric Investments and HK Electric Investments's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HK Electric Investments and HK Electric Investments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HK Electric Investments and HK Electric Investments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HKT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in HKD HK$0.26
SEHK:2638 Share Price ** SEHK (2020-03-31) in HKD HK$7.46
Europe Electric Utilities Industry PE Ratio Median Figure of 76 Publicly-Listed Electric Utilities Companies 10.21x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HK Electric Investments and HK Electric Investments.

DB:HKT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2638 Share Price ÷ EPS (both in HKD)

= 7.46 ÷ 0.26

28.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HK Electric Investments and HK Electric Investments is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • HK Electric Investments and HK Electric Investments is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does HK Electric Investments and HK Electric Investments's expected growth come at a high price?
Raw Data
DB:HKT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
6%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 37 Publicly-Listed Electric Utilities Companies 1.63x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:HKT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.33x ÷ 6%

4.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HK Electric Investments and HK Electric Investments is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HK Electric Investments and HK Electric Investments's assets?
Raw Data
DB:HKT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in HKD HK$5.49
SEHK:2638 Share Price * SEHK (2020-03-31) in HKD HK$7.46
Europe Electric Utilities Industry PB Ratio Median Figure of 87 Publicly-Listed Electric Utilities Companies 0.76x
Germany Market PB Ratio Median Figure of 571 Publicly-Listed Companies 1.43x
DB:HKT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2638 Share Price ÷ Book Value per Share (both in HKD)

= 7.46 ÷ 5.49

1.36x

* Primary Listing of HK Electric Investments and HK Electric Investments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HK Electric Investments and HK Electric Investments is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess HK Electric Investments and HK Electric Investments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. HK Electric Investments and HK Electric Investments has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is HK Electric Investments and HK Electric Investments expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HK Electric Investments and HK Electric Investments expected to grow at an attractive rate?
  • HK Electric Investments and HK Electric Investments's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • HK Electric Investments and HK Electric Investments's earnings growth is positive but not above the Germany market average.
  • HK Electric Investments and HK Electric Investments's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HKT Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HKT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 6%
DB:HKT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 2.9%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HKT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HKT Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 12,084 1
2023-12-31 12,120 1
2022-12-31 11,725 6,967 2,752 6
2021-12-31 11,494 6,605 2,757 8
2020-12-31 10,871 6,628 2,538 7
2020-03-31
DB:HKT Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-12-31 10,739 2,327
2019-09-30 10,949 2,553
2019-06-30 11,158 4,802 2,778
2019-03-31 11,385 4,909 2,915
2018-12-31 11,612 5,015 3,051
2018-09-30 11,718 5,465 3,186
2018-06-30 11,824 5,915 3,320
2018-03-31 11,759 5,901 3,331
2017-12-31 11,693 5,887 3,341
2017-09-30 11,557 6,386 3,421
2017-06-30 11,420 6,885 3,501
2017-03-31 11,420 7,452 3,550

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HK Electric Investments and HK Electric Investments's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
  • HK Electric Investments and HK Electric Investments's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HKT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from HK Electric Investments and HK Electric Investments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HKT Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.31 0.33 0.28 5.00
2021-12-31 0.31 0.37 0.26 7.00
2020-12-31 0.29 0.30 0.27 6.00
2020-03-31
DB:HKT Past Financials Data
Date (Data in HKD Millions) EPS *
2019-12-31 0.26
2019-09-30 0.29
2019-06-30 0.31
2019-03-31 0.33
2018-12-31 0.35
2018-09-30 0.36
2018-06-30 0.38
2018-03-31 0.38
2017-12-31 0.38
2017-09-30 0.39
2017-06-30 0.40
2017-03-31 0.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HK Electric Investments and HK Electric Investments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HK Electric Investments and HK Electric Investments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HK Electric Investments and HK Electric Investments has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HK Electric Investments and HK Electric Investments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HK Electric Investments and HK Electric Investments's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HK Electric Investments and HK Electric Investments's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • HK Electric Investments and HK Electric Investments's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • HK Electric Investments and HK Electric Investments's 1-year earnings growth is negative, it can't be compared to the Europe Electric Utilities industry average.
Earnings and Revenue History
HK Electric Investments and HK Electric Investments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HK Electric Investments and HK Electric Investments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HKT Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 10,739.00 2,327.00
2019-09-30 10,948.50 2,552.50 -133.00
2019-06-30 11,158.00 2,778.00 8.00
2019-03-31 11,385.00 2,914.50 4.00
2018-12-31 11,612.00 3,051.00
2018-09-30 11,718.00 3,185.50 274.00
2018-06-30 11,824.00 3,320.00 274.00
2018-03-31 11,758.50 3,330.50 137.00
2017-12-31 11,693.00 3,341.00
2017-09-30 11,556.50 3,421.00
2017-06-30 11,420.00 3,501.00
2017-03-31 11,420.00 3,550.00
2016-12-31 11,420.00 3,599.00
2016-09-30 11,362.00 3,543.00
2016-06-30 11,304.00 3,487.00
2016-03-31 11,257.00 3,539.00
2015-12-31 11,210.00 3,591.00
2015-09-30 11,232.50 3,515.00
2015-06-30 11,255.00 3,439.00
2015-03-31 10,879.50 3,320.00
2014-12-31 10,504.00 3,201.00
2013-12-31 10,209.00 5,180.00
2013-09-30 10,223.62 4,668.85 372.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HK Electric Investments and HK Electric Investments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HK Electric Investments and HK Electric Investments used its assets less efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • HK Electric Investments and HK Electric Investments's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HK Electric Investments and HK Electric Investments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HK Electric Investments and HK Electric Investments has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HK Electric Investments and HK Electric Investments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HK Electric Investments and HK Electric Investments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HK Electric Investments and HK Electric Investments's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • HK Electric Investments and HK Electric Investments's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of HK Electric Investments and HK Electric Investments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HK Electric Investments and HK Electric Investments Company Filings, last reported 3 months ago.

DB:HKT Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 48,472.00 43,045.00 346.00
2019-09-30 48,472.00 43,045.00 346.00
2019-06-30 47,763.00 43,477.00 399.00
2019-03-31 47,763.00 43,477.00 399.00
2018-12-31 48,743.00 41,965.00 95.00
2018-09-30 48,743.00 41,965.00 95.00
2018-06-30 49,228.00 41,525.00 764.00
2018-03-31 49,228.00 41,525.00 764.00
2017-12-31 49,722.00 41,371.00 1,715.00
2017-09-30 49,722.00 41,371.00 1,715.00
2017-06-30 48,370.00 40,395.00 389.00
2017-03-31 48,370.00 40,395.00 389.00
2016-12-31 49,905.00 39,679.00 379.00
2016-09-30 49,905.00 39,679.00 379.00
2016-06-30 48,297.00 40,960.00 334.00
2016-03-31 48,297.00 40,960.00 334.00
2015-12-31 49,012.00 47,217.00 6,174.00
2015-09-30 49,012.00 47,217.00 6,174.00
2015-06-30 48,504.00 47,373.00 4,704.00
2015-03-31 48,504.00 47,373.00 4,704.00
2014-12-31 49,191.00 47,869.00 4,642.00
2013-12-31 12,271.00 30,077.00 1,060.00
2013-09-30 14,026.37 27,082.47 37.07
  • HK Electric Investments and HK Electric Investments's level of debt (88.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (97.3% vs 88.8% today).
  • Debt is not well covered by operating cash flow (11.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).
X
Financial health checks
We assess HK Electric Investments and HK Electric Investments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HK Electric Investments and HK Electric Investments has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is HK Electric Investments and HK Electric Investments's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.29%
Current annual income from HK Electric Investments and HK Electric Investments dividends. Estimated to be 4.39% next year.
If you bought €2,000 of HK Electric Investments and HK Electric Investments shares you are expected to receive €86 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HK Electric Investments and HK Electric Investments's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • HK Electric Investments and HK Electric Investments's dividend is below the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HKT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 50 Stocks 4.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HKT Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.34 5.00
2021-12-31 0.33 9.00
2020-12-31 0.32 9.00
2020-03-31
DB:HKT Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2020-03-17 0.320 4.271
2019-07-30 0.361 4.667
2019-04-03 0.400 5.117
2019-03-19 0.400 5.066
2018-04-03 0.400 5.173
2018-03-13 0.400 5.301
2017-03-31 0.400 5.594
2017-03-21 0.400 5.686
2016-04-07 0.402 5.715
2016-03-15 0.402 5.880
2015-08-04 0.398 6.747
2015-07-14 0.398 7.385
2015-03-30 0.398 7.547
2014-08-05 0.331 6.378
2014-07-21 0.331 6.181
2014-04-10 0.000 0.000
2014-02-25 4.040 80.513

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HK Electric Investments and HK Electric Investments has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • HK Electric Investments and HK Electric Investments has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of HK Electric Investments and HK Electric Investments's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess HK Electric Investments and HK Electric Investments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HK Electric Investments and HK Electric Investments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HK Electric Investments and HK Electric Investments has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of HK Electric Investments and HK Electric Investments's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chi Tin Wan
COMPENSATION HK$17,940,000
AGE 69
TENURE AS CEO 6.3 years
CEO Bio

Mr. Chi Tin Wan has been the Chief Executive Officer of HK Electric Investments and HK Electric Investments Limited since December 5, 2013 and Executive Director since September 23, 2013. Mr. Wan serves as the Chief Executive Officer and Executive Director at The Hongkong Electric Company, Limited and has been its Managing Director since January 2013. He serves as Chief Executive Officer of HK Electric Investments Limited and has been its Executive Director since September 23, 2013. He has been an Executive Director of Power Assets Holdings Limited since December 12, 2005. He served as Group Managing Director of Power Assets Holdings Limited from January 2013 to January 29, 2014 and served as its Director of Engineering, Planning & Development since March 2008. He served as General Manager of Corporate Development, Information Technology Services & Projects Division at Power Assets Holdings Limited since July 2003. Mr. Wan has been with the Hongkong Electric Group since 1978, holding positions of Chief Electrical Engineer of HEC and Deputy General Manager of Associated Technical Services Limited, a wholly owned subsidiary of the Power Assets Holdings Limited. He served as the Chief Executive Officer of Powercor Australia Limited from September 2000 to June 2003 and CitiPower Pty. from August 2002 to June 2003. He has been a Director of South Eastern Power Networks Plc since February 8, 2013. He has been Director of UK Power Networks Holdings Limited since February 8, 2013. He serves as Director of SA Power Networks, Powercor Network Services Pty Ltd. and ETSA Utilities Finance Pty Ltd. He serves as a Non-Executive Director at Victoria Power Networks (Finance) Pty Limited. He serves as a Director of Eastern Power Networks plc and London Power Networks plc. He is the Vice Chairman of the Engineers Registration Board of the Hong Kong and a Member of Audit Committee of The University of Hong Kong. Mr. Wan holds a Bachelor of Science degree in Electrical Engineering from University of Hong Kong in November 1973 and is also a Chartered Engineer. He is an Honorary Fellow of the Energy Institute, a Fellow of the Institution of Engineering and Technology and a Fellow of the Hong Kong Institution of Engineers.

CEO Compensation
  • Chi Tin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chi Tin's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the HK Electric Investments and HK Electric Investments management team in years:

10.3
Average Tenure
57
Average Age
  • The average tenure for the HK Electric Investments and HK Electric Investments management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Canning Fok

TITLE
Executive Chairman
COMPENSATION
HK$730K
AGE
68

Chi Tin Wan

TITLE
CEO & Executive Director
COMPENSATION
HK$18M
AGE
69
TENURE
6.3 yrs

Francis Cheng

TITLE
Executive Director & Operations Director
COMPENSATION
HK$6M
AGE
62

Dominic Chan

TITLE
Executive Director
COMPENSATION
HK$3M
AGE
56

Daobiao Chen

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
51

Kim Man Wong

TITLE
Chief Financial Officer
AGE
58
TENURE
9.4 yrs

Alex Ng

TITLE
Group Legal Counsel & Company Secretary
AGE
50
TENURE
11.3 yrs

Mimi Yeung

TITLE
General Manager of Public Affairs
AGE
55
TENURE
16.7 yrs

Tak Chow Yee

TITLE
General Manager of Corporate Development
AGE
64
TENURE
43.6 yrs

Dennis Kwong

TITLE
General Manager of Human Resources
AGE
54
TENURE
5.7 yrs
Board of Directors Tenure

Average tenure and age of the HK Electric Investments and HK Electric Investments board of directors in years:

6.3
Average Tenure
65
Average Age
  • The tenure for the HK Electric Investments and HK Electric Investments board of directors is about average.
Board of Directors

Canning Fok

TITLE
Executive Chairman
COMPENSATION
HK$730K
AGE
68
TENURE
6.3 yrs

Chi Tin Wan

TITLE
CEO & Executive Director
COMPENSATION
HK$18M
AGE
69
TENURE
6.4 yrs

Victor Li

TITLE
Deputy Chairman
COMPENSATION
HK$340K
AGE
55
TENURE
5.3 yrs

Francis Cheng

TITLE
Executive Director & Operations Director
COMPENSATION
HK$6M
AGE
62
TENURE
6.3 yrs

Dominic Chan

TITLE
Executive Director
COMPENSATION
HK$3M
AGE
56
TENURE
7.7 yrs

Daobiao Chen

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
51
TENURE
1.8 yrs

Don Roberts

TITLE
Independent Non-Executive Director
COMPENSATION
HK$180K
AGE
67
TENURE
6.3 yrs

Ronald Joseph Arculli

TITLE
Non Executive Director
COMPENSATION
HK$180K
AGE
80
TENURE
6.3 yrs

Alex Fong

TITLE
Independent Non Executive Director
COMPENSATION
HK$100K
AGE
63
TENURE
6.3 yrs

Francis Lee

TITLE
Independent Non-Executive Director
COMPENSATION
HK$160K
AGE
78
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess HK Electric Investments and HK Electric Investments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HK Electric Investments and HK Electric Investments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

HK Electric Investments and HK Electric Investments Limited, a vertically integrated power utility, generates, transmits, distributes, and supplies electricity in Hong Kong Island and Lamma Island. As of December 31, 2018, the company operated 6 coal-fired units, 2 gas-fired units, 5 oil-fired gas turbine units, 1 wind turbine, and 1 solar power system with an installed capacity of 3,237 MW. It also operates a transmission and distribution network of 6,457 kilometers of underground and submarine cables; and 3,963 substations, as well as served 579,000 residential, commercial, and industrial customers. The company was founded in 1889 and is headquartered in Hong Kong, Hong Kong.

Details
Name: HK Electric Investments and HK Electric Investments Limited
HKT
Exchange: DB
Founded: 1889
HK$7,738,677,154
8,836,200,000
Website: http://www.hkelectric.com
Address: HK Electric Investments and HK Electric Investments Limited
Hongkong Electric Centre,
44 Kennedy Road,
Hong Kong,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2638 Stapled Securities The Stock Exchange of Hong Kong Ltd. HK HKD 29. Jan 2014
OTCPK HKCV.F Stapled Securities Pink Sheets LLC US USD 29. Jan 2014
DB HKT Stapled Securities Deutsche Boerse AG DE EUR 29. Jan 2014
OTCPK HKVT.Y SPONSORED ADR Pink Sheets LLC US USD 21. Oct 2014
Number of employees
Current staff
Staff numbers
1,770
HK Electric Investments and HK Electric Investments employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 23:04
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/23
Last earnings filing: 2020/03/17
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.