Group 1 - Bank of America Securities upgraded China Electric Power (00002) to "Buy" with a target price of HKD 80 due to optimistic outlook on free cash flow [1] - The upgrade is expected to improve dividend prospects, with a projected 1.6% year-on-year increase in earnings per share dividends for the fiscal year 2025 [1] - The company's 4.4% dividend yield is considered the most attractive among its peers in the sector [1] Group 2 - The Hong Kong utility sector is viewed as more resilient amid increasing market uncertainties, with regulatory returns being more defensive and potentially linked to inflation [1] - In light of escalating conflicts in the Middle East, the firm prefers investments in high-yield and HALO (Heavy Assets, Low Obsolescence) themed defensive assets, which are expected to perform well in a stagflation environment [1] - There is a growing focus on energy independence, which may drive better growth in renewable energy [1] - The firm is avoiding companies that may be adversely affected by persistently high natural gas and coal costs [1]

Core Viewpoint - The Hong Kong utility sector demonstrates defensive characteristics, showing resilience during global conflicts and outperforming the Hang Seng Index by 7% in the 60 days following significant events [1] Group 1: Stock Performance - Hong Kong Chinese Gas (00003) increased by 1.72%, reaching HKD 7.69 [1] - CLP Holdings (00002) rose by 0.61%, trading at HKD 74.6 [1] - Power Assets Holdings (00006) saw a gain of 0.96%, priced at HKD 63.4 [1] - Hongkong Electric Holdings (02638) climbed by 0.72%, now at HKD 7.01 [1] - Cheung Kong Infrastructure Holdings (01038) also increased by 0.61%, valued at HKD 66.15 [1] Group 2: Market Analysis - HSBC Global Research indicates that the utility sector in Hong Kong consistently exhibits defensive traits during major global conflicts [1] - The sector's core fundamentals remain robust, supported by regulatory frameworks and long-term contracts, allowing it to withstand macroeconomic uncertainties [1] - The impact of rising fuel prices due to geopolitical tensions, such as the closure of the Strait of Hormuz by Iran, is expected to be minimal on sector profitability, as regulated utilities in Hong Kong, the UK, and Australia can fully pass fuel costs onto consumers [1]

Core Viewpoint - The Hong Kong utility sector demonstrates defensive characteristics, showing resilience and outperforming the market during significant global conflicts, with a consistent 7% lead over the Hang Seng Index in the 60 days following major events [1] Group 1: Market Performance - Hong Kong utility stocks have shown an upward trend, with notable increases: - China Gas Holdings (00003) up 1.72% to HKD 7.69 - Power Assets Holdings (00006) up 0.96% to HKD 63.4 - Hongkong Electric Holdings (02638) up 0.72% to HKD 7.01 - CLP Holdings (00002) up 0.61% to HKD 74.6 - Cheung Kong Infrastructure Holdings (01038) up 0.61% to HKD 66.15 [1] Group 2: Sector Analysis - HSBC Global Research indicates that the utility sector's core fundamentals remain robust, supported by regulatory frameworks and long-term contracts, which help mitigate macroeconomic uncertainties and disruptions [1] - The sector's performance is expected to remain stable despite rising fuel prices due to the closure of the Strait of Hormuz, as regulated utilities in Hong Kong, the UK, and Australia can fully pass fuel costs onto consumers [1]

Group 1 - Citigroup downgraded the rating of CLP Holdings (00002) from "Buy" to "Neutral" due to challenges in overseas business profitability stemming from weakening wholesale electricity prices in Australia and the reduction of market-based electricity prices in China [1] - The bank does not recommend a "Sell" rating for CLP, as its dividends remain sustainable supported by its Hong Kong operations [1] - Citigroup revised its net profit forecasts for CLP for 2026 to 2028 down by 5% to 7% to reflect the downward pressures from its Australian and Chinese businesses [1] Group 2 - The target price for CLP was raised by 2.6% to HKD 78 based on expected interest rate cuts in the US, with a projected dividend yield of 4.4% for 2026 deemed reasonable [1] - Among Hong Kong utility stocks, Citigroup favors China Resources Power (00270) due to a dividend yield exceeding 6% [1] - The bank also has a positive outlook on Cheung Kong Infrastructure Holdings (01038) and Power Assets Holdings (00006), as substantial proceeds from the sale of the UK electricity grid can be utilized for future acquisitions [1]

Group 1 - Citi downgraded CLP Holdings (00002) from "Buy" to "Neutral" due to challenges in overseas business profitability stemming from weakening wholesale electricity prices in Australia and a reduction in market-based electricity prices in China [1] - Despite the downgrade, Citi does not recommend a "Sell" rating for CLP, citing sustainable dividends supported by its Hong Kong operations [1] - The net profit forecast for CLP for 2026 to 2028 has been reduced by 5% to 7% to reflect the downward pressures from its Australian and Chinese businesses [1] Group 2 - Citi raised the target price for CLP by 2.6% to HKD 78, based on expectations of interest rate cuts in the US and a lower weighted average cost of capital [1] - The expected dividend yield for 2026 is projected to be 4.4%, which is considered reasonable [1] - Among Hong Kong utility stocks, Citi favors China Resources Power (00270) due to a dividend yield exceeding 6% [1] Group 3 - Citi also has a positive outlook on Cheung Kong Infrastructure (01038) and Power Assets Holdings (00006), as substantial proceeds from the sale of the UK electricity grid can be utilized for future acquisitions [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2026年2月28日 | 狀態: | 新提交 | | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | 公司名稱: | 中電控股有限公司 | | | | 呈交日期: | 2026年3月2日 | | | | I. 法定/註冊股本變動 不適用 | | | | FF301 第 1 頁 共 10 頁 v 1.2.0 第 2 頁 共 10 頁 v 1.2.0 FF301 FF301 III.已發行股份及/或庫存股份變動詳情 II. 已發行股份及/或庫存股份變動及足夠公眾持股量的確認 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00002 | 說明 | 不適用 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 86.64, up from the previous target of HKD 78.40 [6][4]. Core Insights - The company reported a revenue of HKD 88.018 billion for 2025, a decrease of 3.2% year-on-year, and a net profit of HKD 10.468 billion, down 10.8% year-on-year, slightly below previous expectations [1][4]. - The company is expected to see a stable dividend payout, with a proposed dividend per share (DPS) of HKD 3.20 for 2025, reflecting a 1.6% increase from 2024 [1][3]. - The company is adjusting its zero-carbon project investment plans, aiming for installed capacity of approximately 5 GW in mainland China and 9 GW in India by 2030, which is expected to drive future growth [3][4]. Summary by Sections Financial Performance - The company's operational profit in Hong Kong increased by 8% to HKD 9.251 billion in 2025, despite a 1% decline in electricity sales [2]. - The operational profit in mainland China decreased by 11%, primarily due to pricing pressures at the Yangjiang Nuclear Power Station and increased curtailment rates in renewable energy projects [2]. - The company’s free cash flow rose by 72% year-on-year to HKD 8.1 billion, driven by reduced capital expenditures [3]. Profit Forecast and Valuation - The report forecasts net profits of HKD 11.243 billion for 2026, HKD 11.920 billion for 2027, and HKD 12.464 billion for 2028, reflecting year-on-year growth rates of 7.4%, 6.0%, and 4.6% respectively [4][9]. - The estimated earnings per share (EPS) for 2026 is projected at HKD 4.45, with a price-to-book (PB) ratio of 1.91x for 2026 [4][9].

Group 1 - Citigroup downgraded the rating of CLP Holdings from "Buy" to "Neutral" due to challenges in the profitability outlook of its overseas business [1] - Despite the downgrade, Citigroup does not recommend a "Sell" rating for CLP, as its dividends remain sustainable supported by its Hong Kong operations [1] - The net profit forecast for CLP for the years 2026 to 2028 has been reduced by 5% to 7%, reflecting expectations of a U.S. interest rate cut and a lower weighted average cost of capital [1] Group 2 - Citigroup raised the target price for CLP by 2.6% to HKD 78, anticipating a dividend yield of 4.4% in 2026, which is considered reasonable [1] - Among Hong Kong utility stocks, Citigroup is most optimistic about China Resources Power, which has a dividend yield exceeding 6% [1] - Citigroup also favors Cheung Kong Infrastructure and Power Assets Holdings, as the substantial proceeds from the sale of the UK electricity grid can be utilized for future acquisitions [1]

Core Viewpoint - The Hong Kong Dividend ETF (ICBC, 159691) has shown a slight increase in its closing price and trading volume, indicating a stable performance since its inception in March 2023 [1] Group 1: Fund Performance - As of February 26, 2023, the Hong Kong Dividend ETF (ICBC, 159691) has a total share count of 6.134 billion and a total asset size of 8.549 billion [1] - The fund's share count has decreased by 6.06% and its asset size has increased by 1.35% since the beginning of the year [1] Group 2: Trading Activity - The cumulative trading amount for the past 20 trading days is 7.066 billion, with an average daily trading amount of 0.353 billion [1] - Since the beginning of the year, the cumulative trading amount over 34 trading days is 11.207 billion, with an average daily trading amount of 0.330 billion [1] Group 3: Fund Management - The current fund managers are Zhao Xu and Jiao Wenlong, both of whom have managed the fund since February 5, 2026, achieving a return of 0.99% during their tenure [2] - The fund's top holdings include China National Offshore Oil Corporation (14.55%), China Shenhua Energy Company (9.65%), and China Pacific Insurance (8.90%), among others [2]

Core Viewpoint - The Hong Kong Dividend ETF (ICBC, 159691) has experienced significant net redemptions, indicating a trend of outflows from the fund, which may reflect investor sentiment and market conditions [1][2]. Group 1: Fund Performance - On February 26, the Hong Kong Dividend ETF (ICBC, 159691) faced a net redemption of 69.2 million yuan, ranking 4th out of 217 in cross-border ETF net outflows for the day [1]. - Over the past five days, the fund has seen net redemptions totaling 123 million yuan, ranking 2nd out of 217 [1]. - The fund's total size as of February 26 is 8.549 billion yuan, down from 8.78 billion yuan the previous day, with the outflow representing 0.79% of the prior day's size [1]. Group 2: Fund Details - The Hong Kong Dividend ETF (ICBC, 159691) was established on March 30, 2023, with an annual management fee of 0.45% and a custody fee of 0.07% [2]. - As of February 26, the fund has 6.134 billion shares outstanding, a decrease of 6.06% from 6.53 billion shares on December 31, 2025, while the fund's size has increased by 1.35% during the same period [2]. Group 3: Trading Activity - The cumulative trading amount for the Hong Kong Dividend ETF over the last 20 trading days is 6.993 billion yuan, with an average daily trading amount of 350 million yuan [2]. - Year-to-date, the fund has recorded a cumulative trading amount of 10.928 billion yuan over 33 trading days, averaging 331 million yuan per day [2]. Group 4: Fund Holdings - The current fund managers are Zhao Xu and Jiao Wenlong, both managing the fund since February 5, 2026, with a return of 1.12% during their tenure [3]. - Major holdings in the fund include China National Offshore Oil Corporation (14.55%), China Shenhua Energy (9.65%), and China Pacific Insurance (8.90%), among others, with significant market values [3].