Investors Appear Satisfied With CLP Holdings Limited's (HKG:2) Prospects

Simply Wall St.10-12

When close to half the companies in Hong Kong have price-to-earnings ratios (or "P/E's") below 9x, you may consider CLP Holdings Limited (HKG:2) as a stock to avoid entirely with its 22.2x P/E ratio. ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2474634021?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9521000-choice2-main-header/1585186610142","is_english":true,"pubTime":"2024-10-12 06:01","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2474634021","market":"nz","top_or_hot":-1,"title":"Investors Appear Satisfied With CLP Holdings Limited's (HKG:2) Prospects","media":"Simply Wall St.","content":"<div>\n<p>When close to half the companies in Hong Kong have price-to-earnings ratios (or \"P/E's\") below 9x, you may consider CLP Holdings Limited (HKG:2) as a stock to avoid entirely with its 22.2x P/E ratio. ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/utilities/hkg-2/clp-holdings-shares/news/investors-appear-satisfied-with-clp-holdings-limiteds-hkg2-p\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Investors Appear Satisfied With CLP Holdings Limited's (HKG:2) Prospects</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInvestors Appear Satisfied With CLP Holdings Limited's (HKG:2) Prospects\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-12 06:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/utilities/hkg-2/clp-holdings-shares/news/investors-appear-satisfied-with-clp-holdings-limiteds-hkg2-p><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When close to half the companies in Hong Kong have price-to-earnings ratios (or \"P/E's\") below 9x, you may consider CLP Holdings Limited (HKG:2) as a stock to avoid entirely with its 22.2x P/E ratio. ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/utilities/hkg-2/clp-holdings-shares/news/investors-appear-satisfied-with-clp-holdings-limiteds-hkg2-p\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BG0RBZ43.SGD","symbol_name":"Legg Mason Martin Currie - Asia Pacific Ex Japan Real Income A Mdis SGD Plus","start_time":0,"source_url":"https://simplywall.st/stocks/hk/utilities/hkg-2/clp-holdings-shares/news/investors-appear-satisfied-with-clp-holdings-limiteds-hkg2-p","article_id":"2474634021","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9521000-choice2-main-header/1585186610142"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474634021","pubTimestamp":1728684080,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When close to half the companies in Hong Kong have price-to-earnings ratios (or \"P/E's\") below 9x, you may consider CLP...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BG0RBZ43.SGD":"Legg Mason Martin Currie - Asia Pacific Ex Japan Real Income A Mdis SGD Plus","BK1527":"公用股","BK4211":"区域性银行","LU1634259391.SGD":"Eastspring Investments - Asian Low Volatility Equity Fund AS SGD","ISBC":"投资者银行","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","03145":"华夏亚洲高息股","IE00BHRH8C09.USD":"LM MARTIN CURRIE ASIA PACIFIC EX JAPAN REAL INC \"A\" (USD) INC","LU1497734951.SGD":"Eastspring Investments - Asian Low Volatility Equity Fund ASDM SGD-H","LU1497733557.USD":"EASTSPRING INV ASIAN LOW VOLATILITY EQUITY FUND \"A\" (USD) INC A","LU1497733631.SGD":"Eastspring Investments - Asian Low Volatility Equity Fund ASDM SGD","LU1634259557.SGD":"Eastspring Investments - Asian Low Volatility Equity Fund AS SGD-H","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","LU1522347837.USD":"EASTSPRING INV ASIAN LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC A","BK1577":"香港本地消费股","BK1099":"电力公用事业","00002":"中电控股"},"translate_title":"投资者对中电控股有限公司(HKG：2)的前景感到满意","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00002":1,"ISBC":1,"03145":0.6},"content_text":"When close to half the companies in Hong Kong have price-to-earnings ratios (or \"P/E's\") below 9x, you may consider CLP Holdings Limited (HKG:2) as a stock to avoid entirely with its 22.2x P/E ratio.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.     CLP Holdings hasn't been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average.   It might be that many expect the dour earnings performance to recover substantially, which has kept the P/E from collapsing.  You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.     See our latest analysis for CLP Holdings SEHK:2 Price to Earnings Ratio vs Industry October 11th 2024 If you'd like to see what analysts are forecasting going forward, you should check out our free report on CLP Holdings.  Does Growth Match The High P/E?   CLP Holdings' P/E ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the market.   If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 30%.   As a result, earnings from three years ago have also fallen 25% overall.  Therefore, it's fair to say the earnings growth recently has been undesirable for the company.     Turning to the outlook, the next three years should generate growth of 21%  per annum as estimated by the eight analysts watching the company.  That's shaping up to be materially higher than the 12% each year growth forecast for the broader market.  With this information, we can see why CLP Holdings is trading at such a high P/E compared to the market.  It seems most investors are expecting this strong future growth and are willing to pay more for the stock.    The Final Word  It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.  As we suspected, our examination of CLP Holdings' analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E.  At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio.  Unless these conditions change, they will continue to provide strong support to the share price.      It is also worth noting that we have found 3 warning signs for CLP Holdings that you need to take into consideration.   If these risks are making you reconsider your opinion on CLP Holdings, explore our interactive list of high quality stocks to get an idea of what else is out there. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474634021"}