Morgan Stanley released a research report stating that CLP Holdings (00002) recorded interim net profit of HK$5.6 billion, representing a 6% decline from HK$6.0 billion in the same period last year. Excluding EnergyAustralia's fair value loss of HK$35 million (compared to a gain of HK$172 million in the first half of 2024), operating profit stood at HK$5.2 billion, down 8% year-on-year. All regions except Hong Kong recorded negative operating profit growth, while CLP's dividend per share for the first half remained flat at HK$1.26. The bank maintains its "In-line" rating and target price of HK$69 for CLP.

The bank noted that CLP's Hong Kong operations achieved interim operating profit of HK$4.6 billion, up 6% year-on-year. However, mainland China operations saw operating profit decline 12% to HK$870 million, attributed to: 1) lower electricity tariffs at Yangjiang affecting profitability; 2) weaker wind resources in the first half resulting in reduced renewable energy generation.

Morgan Stanley indicated that Australia operations recorded operating profit of HK$167 million, down 73% year-on-year, due to: 1) margin pressure from intense retail competition; 2) higher coal costs following the end of coal compensation in 2024; 3) reduced generation at the Mount Piper coal-fired power plant and Yallourn facility in New South Wales due to outages.