智通财经网·2025-08-14 05:53Group 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]