Citigroup: Gives a "buy" rating to CLP Holdings (00002) with a target price of 80 Hong Kong dollars.

Citi released a research report, giving CLP Holdings Limited (00002) a "buy" rating with a target price of HK$80. CLP Holdings' profit in 2024 increased by 76.4% year-on-year to HK$11.742 billion, exceeding market expectations by 3.1%. Earnings per share increased by 1.6% to HK$3.15, marking the first dividend increase since 2020 and bringing positive surprises. The dividend for the fourth quarter of 2024 was HK$1.26, a growth of 4.1%. Citi stated that excluding one-off items, the operating profit of CLP grew by 8.1% after removing fair value changes, reaching HK$10.949 billion. This growth was mainly driven by the following factors: stable operations in Hong Kong, generating a profit of HK$8.895 billion, accounting for 76% of total profit; profit from the Australian business turned positive, achieving an operating profit of HK$591 million last year, benefiting from higher contributions from the energy business due to price increases and increased power generation at the Mount Piper power station, as a result of more stable coal supply, partially offset by higher fuel costs; profits in mainland China decreased by 10.7% to HK$1.851 billion, primarily due to a decrease in contributions from nuclear power.