Power Assets Holdings Ltd

00006: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$91.00	Gssk	Gjndflc

Power Assets Earnings: Little Surprise but Shares No Longer Cheap

Lorraine Tan

Aug 14, 2024

Power Assets Holdings’, or PAH’s, share price has risen almost 29% since July 1, outperforming the market as dividend plays come back into favor as Hong Kong interest rates are due to slide along with the Federal Reserve rate cuts. We also think that some excitement over renewed acquisition opportunities is helping. However, we feel that PAH is now overvalued. Following largely unsurprising first-half 2024 results, with net profit of HKD 3.006 billion rising 1.6% year on year and minimal change to our estimates, our fair value estimate is little changed at HKD 49.00 from HKD 48.60.

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