Investment Rating - The investment rating for the company is maintained as "Buy" [1][10]. Core Views - The company reported a revenue of HKD 5.567 billion for 1H25, a year-on-year decrease of 0.09%, while the net profit attributable to the parent company was HKD 1.001 billion, reflecting a year-on-year increase of 5.70%, aligning closely with previous forecasts [7]. - The company declared an interim dividend of HKD 1.408 billion, unchanged from the previous year, representing 100% of the distributable income [7]. - Capital expenditure for 1H25 increased by 8% to HKD 1.482 billion, with a projected average annual capital expenditure of HKD 4.585 billion from 2025 to 2028, indicating a 25% increase compared to 2024 [9][10]. Financial Performance Summary - **Revenue Forecasts**: Expected revenues for the upcoming years are projected as follows: HKD 12.057 billion in 2024, HKD 12.338 billion in 2025, HKD 12.838 billion in 2026, and HKD 12.983 billion in 2027, with growth rates of 5.71%, 2.33%, 4.05%, and 1.13% respectively [6]. - **Net Profit Forecasts**: The net profit attributable to the parent company is forecasted to be HKD 3.111 billion in 2024, HKD 3.342 billion in 2025, HKD 3.420 billion in 2026, and HKD 3.459 billion in 2027, with year-on-year changes of -1.43%, 7.41%, 2.34%, and 1.14% respectively [6]. - **Earnings Per Share (EPS)**: The expected EPS is projected to be HKD 0.35 in 2024, HKD 0.38 in 2025, and HKD 0.39 in both 2026 and 2027 [6]. Capital Expenditure and Development Plans - The company is progressing well with its five-year development plan, including the construction of a gas combined cycle power generation unit with a capacity of 380MW, expected to be operational by 2029 [8]. - The capital expenditure budget for 2024-2028 is estimated to reach HKD 22 billion, with a focus on maintaining high levels of capital investment to support future net profit growth [9][10]. Valuation Metrics - The target price for the company is set at HKD 7.32, based on a price-to-book ratio of 1.30x for 2025E [10]. - The company’s market capitalization is approximately HKD 55.05 billion, with a closing price of HKD 6.23 as of August 13 [3][4].

Group 1 - The core viewpoint of the report indicates that despite a 3.2% decline in electricity sales volume for Hongkong Electric (港灯-SS, 02638) in the first half of the year, the attributable profit increased by 5.7% [1] - The company maintained a distribution of 15.94 cents per unit for the first half of the year, reflecting its stable financial position [1] - DBS has adjusted its earnings forecast for Hongkong Electric and raised the target price from HKD 6.5 to HKD 7.4, while increasing the target price-to-earnings ratio from 17x to 20x to reflect improved investor sentiment [1] Group 2 - Hongkong Electric has a generation capacity of 3,617 MW and is a major electricity supplier for Hong Kong Island and Lamma Island, regulated by the Hong Kong government under the Scheme of Control Agreement (SCA) [1] - The company is investing in decarbonization initiatives and aims to phase out all coal-fired power plants by 2035, with over 50% of its electricity coming from natural gas in 2024 [1] - A liquefied natural gas terminal is under construction to facilitate the transition to gas-fired generation, which is expected to increase the proportion of natural gas generation to 70% [1] Group 3 - The report notes that global fuel price weakness will reduce net electricity fees in 2025, but Hongkong Electric enjoys stable cash flow due to its provision of highly reliable electricity supply services in a mature market [2] - The company's balance sheet remains robust, with a debt-to-capital ratio of 51.4% in the first half of 2025, stable compared to 51.1% in the first half of 2024 [2] - Approximately 73% of the company's debt structure is fixed-rate, minimizing interest rate risk, and long-term debt (over five years) accounts for 38% of total debt [2]

Group 1 - The core viewpoint of the report is that despite a 3.2% decline in electricity sales volume for Hongkong Electric (港灯-SS), the attributable profit increased by 5.7% in the first half of the year [1] - The company maintained a distribution of 15.94 cents per unit for the first half of the year, reflecting its stable financial position [1] - DBS has adjusted its earnings forecast for Hongkong Electric and raised the target price from HKD 6.5 to HKD 7.4, with a revised target price-to-earnings ratio from 17 times to 20 times, indicating improved investor sentiment [1] Group 2 - Hongkong Electric has a generation capacity of 3,617 megawatts and is a major electricity supplier for Hong Kong Island and Lamma Island, regulated by the Hong Kong government under the Scheme of Control Agreement (SCA) [1] - The company is investing in decarbonization plans and aims to phase out all coal-fired power plants by 2035, with over 50% of its electricity coming from natural gas in 2024 [1] - A liquefied natural gas terminal is under construction to facilitate the transition to gas-fired power generation, which is expected to increase the proportion of natural gas generation to 70% [1] Group 3 - The global weakness in fuel prices is expected to lower net electricity fees in 2025, but Hongkong Electric will continue to enjoy stable cash flow due to its reliable electricity supply services in a mature market [2] - The company's balance sheet remains robust, with a debt-to-capital ratio stable at 51.4% in the first half of 2025, compared to 51.1% in the first half of 2024 [2] - Approximately 73% of the company's debt structure is fixed-rate, minimizing interest rate risk, and the long-term debt (over five years) accounts for 38% of total debt [2]

Core Viewpoint - 港灯 (2638.HK) reported a net profit attributable to unit holders of HKD 1.001 billion for the six months ending June 30, reflecting a year-on-year increase of 5.7% [1] Financial Performance - Earnings per share stood at HKD 0.1133, with an interim distribution maintained at HKD 0.1594 per unit [1] - Revenue for the period was HKD 5.567 billion, showing a slight decline of 0.09% year-on-year [1] - Electricity sales volume decreased by 3.2% compared to the previous year, attributed to several factors including milder weather, successful energy-saving initiatives, a downturn in the food and retail sectors, and one less day in the reporting period compared to the leap year last year [1]

Group 1 - The company, Hong Kong Electric Holdings Limited (港灯-SS), announced a mid-term dividend of HKD 0.1594 per share for the six months ending June 30, 2025, to be distributed on September 8, 2025 [1]

Group 1 - The company, Hong Kong Electric Holdings Limited (港灯-SS), announced a mid-term dividend of HKD 0.1594 per share, which will be distributed on September 8, 2025, for the six months ending June 30, 2025 [1]

EF001 免責聲明 第 2 頁 共 2 頁 v 1.1.1 EF001 發行人所發行上市權證/可轉換債券的相關信息 發行人所發行上市權證/可轉換債券 不適用 其他信息 備註： 港燈電力投資與港燈電力投資有限公司的股份合訂單位為下列證券或證券權益的組合在組成港燈電力投資的信託契約的條文規限下 僅可共同買賣、不可單獨或僅一方而無其他方買賣：(a)於港燈電力投資中的一個單位；(b)與單位掛鈎並且由港燈電力投資管理人 有限公司作為港燈電力投資的受託人—經理以法定擁有人身份持有一股港燈電力投資有限公司特定識別的普通股（「普通股」）中 的實益權益；及(c)一股與單位合訂的港燈電力投資有限公司特定識別的優先股（「優先股」）。組成一個股份合訂單位部分的每一 股普通股及優先股為已繳足股份。 股份合訂單位及其組成的單位、普通股和優先股均於香港聯合交易所有限公司（「香港聯交所」）主板上市。然而，只要股份合訂 單位於香港聯交所上市，於香港聯交所的買賣僅以股份合訂單位形式進行。 發行人董事 於本公告日期，港燈電力投資管理人有限公司與港燈電力投資有限公司的董事為： 執行董事： 霍建寧先生（主席） 鄭祖瀛先生（行政總裁） 陳來順先生 蔡 ...

Core Viewpoint - The company reported a slight decrease in revenue for the first half of 2025, while net profit showed a positive growth, indicating resilience despite challenges in electricity sales volume [1] Financial Performance - Revenue for the first half of 2025 was HKD 5.567 billion, a decrease of 0.09% year-on-year [1] - Net profit attributable to shareholders was HKD 1.001 billion, an increase of 5.7% year-on-year [1] - Earnings per share were HKD 0.1133, with an interim dividend of HKD 0.1594 per share [1] Operational Highlights - Electricity sales volume decreased by 3.2% compared to the same period in 2024, attributed to milder weather, successful energy-saving initiatives, a downturn in the food and retail sectors, and one less day in the calendar compared to the previous leap year [1] - The company is progressing towards its zero-carbon operation goal, actively implementing a development plan worth HKD 22 billion for 2024-2028 to ensure timely completion of all projects [1] - The previous five-year development plan helped reduce carbon emissions from power generation by approximately 40% compared to 2005 levels, with the new plan aiming to further increase the proportion of gas-fired power generation [1] - Key projects are progressing smoothly, including the construction of a new gas combined cycle generator unit L13 and several single-cycle fuel oil generator units for emergency power supply [1]

Core Viewpoint - The company reported a slight decrease in revenue but an increase in profit, indicating resilience despite challenges in electricity sales volume and market conditions [1] Financial Performance - Revenue for the first half of 2025 was HKD 5.567 billion, a decrease of 0.09% year-on-year [1] - Profit attributable to shareholders was HKD 1.001 billion, an increase of 5.7% year-on-year [1] - Earnings per share were HKD 0.1133, with an interim dividend of HKD 0.1594 per share [1] Operational Highlights - Electricity sales volume decreased by 3.2% compared to the same period in 2024, attributed to milder weather, successful energy-saving initiatives, a downturn in the food and retail sectors, and one less day in the calendar compared to the previous leap year [1] - The company is progressing towards its zero-carbon operation goal, actively implementing a development plan valued at HKD 22 billion for 2024-2028 to ensure timely completion of all projects [1] - The previous five-year development plan is expected to reduce carbon emissions from power generation by approximately 40% compared to 2005 levels by 2024 [1] - The new development plan aims to further increase the proportion of gas-fired power generation, ensuring long-term energy supply stability and supporting Hong Kong's decarbonization goals [1] - Key projects are progressing smoothly, including the construction of a new gas combined cycle generator unit L13 and several single-cycle fuel oil generator units for emergency power supply [1]

Core Viewpoint - The company reported a slight decrease in pre-tax profit for the first half of 2025 compared to the same period in 2024, while also maintaining its interim dividend distribution. Financial Performance - For the first half of 2025, the pre-tax profit was HKD 39.79 billion, compared to HKD 39.89 billion in 2024 [1] - The unaudited profit attributable to shareholders was HKD 10.01 billion, an increase from HKD 9.47 billion in 2024 [1] - The distributable income for the period was HKD 14.08 billion, unchanged from 2024 [1] Dividend Distribution - The interim dividend was declared at HKD 0.1594 per share, consistent with the previous year [1] - The dividend will be distributed on September 8, 2025, to shareholders registered by August 27, 2025 [1] Sales Volume and Pricing - The electricity sales volume decreased by 3.2% compared to the same period in 2024, attributed to milder weather, successful energy-saving initiatives, and a downturn in the food and retail sectors, along with one less day in the calendar compared to the leap year [1] - The basic electricity tariff was increased by HKD 0.034 to HKD 1.229 per kWh due to rising capital investment and operating costs [1] - In August 2025, the fuel adjustment fee decreased by over 16% compared to January, leading to a net electricity tariff reduction of 4.4% to HKD 1.596 per kWh [1]