"Big Banks" Bank of America Securities: CLP Holdings' performance in the second half of last year was below expectations, reiterating a "Neutral" rating

According to a research report by Bank of America Securities, CLP Holdings (00002.HK) is expected to see a 3.6% growth in operating profit in the second half of 2025, which is 5% lower than the bank's expectations, mainly due to the drag from the EnergyAustralia business. The dividend per share will increase by 5 cents, in line with expectations.

The bank welcomes the company's decision to lower the annual new target for renewable energy in mainland China from 840 megawatts to 540 megawatts, as well as the guidance that the mainland portfolio will be self-sustaining from 2026. However, the bank believes that the company's dividend yield of only 4.4% is too low.

The bank has adjusted its earnings per share forecast for CLP Holdings for 2026 to 2027, with a decrease of 2% to an increase of 1%; it maintains a "Neutral" rating, raising the target price from HKD 68.7 to HKD 75