Morningstar

Morningstar, Inc.

Equity Bottom-Up

We make minor tweaks to our profit forecast for Power Assets Holdings on slightly higher joint-venture profit partly offset by a stronger Hong Kong dollar versus the British pound and Australian dollar. But most assumptions are largely unchanged ahead of mid-year results that should be released by the end of July. Our fair value estimate remains at HKD 52. Notably, we are on the low end of Street expectations with consensus target price at HKD 58, but our free cash flow reflects a dip from 2024…

On the whole we tend to expect CK Infrastructure's, or CKI's, and Power Assets' planned spin-off of its European assets to be positive as we see this as an opportunity for the group to potentially realize market valuations of these holdings. We also see the cash raised as possibly being utilized for new acquisitions with potentially better growth prospects particularly as the next permutation of allowed returns on the U.K. assets could be less attractive. However, the move could negatively…

After following up with CK Infrastructure, or CKI, and Power Assets Holdings, or PAH, management, we lower our post-2018 earnings outlook by around 5%-7% leading to a cut in our fair value estimates to HKD 68 from HKD 72 for CKI and to HKD 58 from HKD 62 for PAH. The reduction is largely due to the absence of contribution from the Zhuhai power plant after 2018 as the plant reverts to local government ownership. We also expect CKI to take a smaller stake in Australian gas utility APA Group should…

We have fine-tuned our profit forecast assumptions following the release of narrow-moat Power Assets Holdings' annual report, which provides additional details, but our fair value estimate remains HKD 62. Our EPS estimate is lowered by less than 3% in 2018 but by around 6% in the following years. The reduction is mainly due to the timing of added income from 49%-owned Husky Midstream, which we have smoothed out from 2019 through 2021. Husky Midstream's added capacity is on track to come on line…

We lower our fair value estimate on Power Assets Holdings to HKD 62 from HKD 68 with the company going ex-dividend today. There is no other change to our view on the company. We believe that this latest special dividend of HKD 6 per share is likely to be the last exceptional dividend payout by the company that relates to the excess cash it has held onto following the spin-off of Hong Kong Electric in 2014. Power Assets will have paid out almost HKD 50 billion in total dividends in 2017 and 2018…

Hong Kong

Power Assets Holdings Limited invests in power generation, transmission and distribution as well as gas distribution. The Company has investments in Hong Kong, Australia, Canada, China, New Zealand and Thailand.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00