# Power Assets (0006.HK)

Canonical: https://gigainvestors.com/s/0006.HK

Analysis as of: 2026-10-16T07:35:00.143Z. Financial observations: FY2000–FY2025.

Listing currency: HKD. Reporting currency: HKD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 60.60 per share; close as of 2026-10-15.

Estimated value: low HKD 40.27 per share, central HKD 42.89 per share, high HKD 46.39 per share. Buy at or below the central value HKD 42.89 per share. Valuation as of 2026-10-16T07:35:00.143Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 0

- Operating margin variation: 1.26×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.38×

- FY2017: 0.64×

- FY2018: 0.84×

- FY2019: 1.24×

- FY2020: 0.93×

- FY2021: 1.16×

- FY2022: 0.92×

- FY2023: 0.88×

- FY2024: 6.87×

- FY2025: 0.61×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 45.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 1.4%

- ROIC, second-lowest year: 0.7%

- Typical minus recent gross margin: 45.6 pp

- Typical gross margin (annual median): 100.0%

- Recent gross margin (lower of latest and 3-year median): 54.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.1%

- ROIC including acquisitions, ten-year median: 7.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.7%

- FY2017: 1.2%

- FY2018: 1.6%

- FY2019: 1.9%

- FY2020: 1.4%

- FY2021: 1.7%

- FY2022: 1.3%

- FY2023: 1.2%

- FY2024: 7.0%

- FY2025: 0.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: HKD 30B

- Net income, five-year total: HKD 30B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -14.3 pp

- Working capital / revenue, change between three-year averages: -91.2 pp

- Working capital / revenue, final three-year average: -320.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 1.2% vs 1.2%

- Per-share earnings: 3.62 to 2.87 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: HKD -28B

- Cumulative retained earnings: HKD -116B

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -2.9%

- Per-share value change: HKD -0.75

- Per-share value, starting three-year median: HKD 3.62

- Per-share value, ending three-year median: HKD 2.87

- Average buyback yield: 0.1%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: HKD 1.9B

- Cumulative net income, 10 years: HKD 66B

- ROIC, first three-year median: 1.2%

- ROIC, last three-year median: 1.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: HKD 3.01

- FY2017: HKD 3.90

- FY2018: HKD 3.58

- FY2019: HKD 3.34

- FY2020: HKD 2.87

- FY2021: HKD 2.88

- FY2022: HKD 2.65

- FY2023: HKD 2.82

- FY2024: HKD 2.87

- FY2025: HKD 2.93

### accounting: pass

- Sloan accruals: 5.4%

- Receivables to sales index (DSRI): 0.75×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.14×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 4.4%

- FY2017: 6.7%

- FY2018: 5.6%

- FY2019: 6.1%

- FY2020: 5.5%

- FY2021: 5.5%

- FY2022: 5.2%

- FY2023: 5.1%

- FY2024: 5.5%

- FY2025: 5.4%

## Holders

## Price story

Price needs cash profits to grow 8.4% a year for ten years · sales -16.1%

Story as of 2026-10-16T10:00:03.314Z; price observation 2026-10-15.

Price needs cash profits to grow 8.4% a year for ten years

### Sales · FY2024–2025

sales -16.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: HKD 1.3B 

- FY2017: HKD 1.4B 

- FY2018: HKD 1.6B 

- FY2019: HKD 1.3B 

- FY2020: HKD 1.3B 

- FY2021: HKD 1.3B 

- FY2022: HKD 1.3B 

- FY2023: HKD 1.3B 

- FY2024: HKD 919M 

- FY2025: HKD 771M 

### Gross margin · FY2025

gross margin 54.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 99.5% 

- FY2017: 99.9% 

- FY2018: 99.9% 

- FY2021: 91.3% 

- FY2025: 54.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities independent power producers; annual sales are HKD 771 million.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2025-12-31 (filed 2026-10-16T07:35:00.143Z); FY2025: revenue 771000000; grossProfit 419000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0006.HK: Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Canada, mainland China, Netherlands, New Zealand, Thailand, the United States, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also develops green energy; distributes oil and gas; and provides trust administration and management services. Power Assets Holdings Limited was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. The company was founded in 1889 and is based in Central, Hong Kong.

### Why customers stay

It earns 1.4% on its capital.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2023-12-31 (filed 2026-10-16T07:35:00.143Z); FY2023: grossProfit / revenue = 100%.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2024-12-31 (filed 2026-10-16T07:35:00.143Z); FY2024: grossProfit / revenue = 691%.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2025-12-31 (filed 2026-10-16T07:35:00.143Z); FY2025: grossProfit / revenue = 54.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:00.143Z); 10-year return on capital observations [[2016,0.007498504899329888],[2017,0.0116351200829678],[2018,0.015962437547346872],[2019,0.01942746707813273],[2020,0.014004566144368066],[2021,0.016995452600106577],[2022,0.013376363349594902],[2023,0.012389396411721699],[2024,0.07003170786726451],[2025,0.005004583603583687]]; median 0.013690464746981483. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.9% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2016-12-31 (filed 2026-10-16T07:35:00.143Z); FY2016: growth capex 0; upkeep 1000000; owner earnings 6417000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2017-12-31 (filed 2026-10-16T07:35:00.143Z); FY2017: growth capex 0; upkeep 1000000; owner earnings 8319000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2018-12-31 (filed 2026-10-16T07:35:00.143Z); FY2018: growth capex 0; upkeep 1000000; owner earnings 7636000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2019-12-31 (filed 2026-10-16T07:35:00.143Z); FY2019: growth capex 0; upkeep 2000000; owner earnings 7130000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2020-12-31 (filed 2026-10-16T07:35:00.143Z); FY2020: growth capex 0; upkeep 2000000; owner earnings 6133600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2021-12-31 (filed 2026-10-16T07:35:00.143Z); FY2021: growth capex 0; upkeep 0; owner earnings 6142000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2022-12-31 (filed 2026-10-16T07:35:00.143Z); FY2022: growth capex 0; upkeep 1000000; cash acquisitions 266000000; owner earnings 5650400000. Growth capex plus acquisitions / owner earnings = 0.04707631318136769.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2023-12-31 (filed 2026-10-16T07:35:00.143Z); FY2023: growth capex 0; upkeep 2000000; cash acquisitions 638000000; owner earnings 6004200000. Growth capex plus acquisitions / owner earnings = 0.10625895206688651.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2024-12-31 (filed 2026-10-16T07:35:00.143Z); FY2024: growth capex 0; upkeep 0; cash acquisitions 782000000; owner earnings 6121200000. Growth capex plus acquisitions / owner earnings = 0.1277527282232242.

- Source: https://eodhd.com/api/fundamentals/0006.HK.json#2025-12-31 (filed 2026-10-16T07:35:00.143Z); FY2025: growth capex 0; upkeep 1000000; cash acquisitions 57000000; owner earnings 6238800000. Growth capex plus acquisitions / owner earnings = 0.009136372379303712.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:00.143Z); Dividend observations: [[2016,5805000000],[2017,32632000000],[2018,18782000000],[2019,5976000000],[2020,5976000000],[2021,6019000000],[2022,6019000000],[2023,6009000000],[2024,6010000000],[2025,6010000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 36% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0006.HK SharesStats.PercentInsiders = 36.025 percentage points; cache date 2026-10-16.

### What could break it

The project is scheduled for completion by 30 June 2026, with actual progress depending on the interfacing arrangements.

- Source: https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0421/2026042100656.pdf (filed ); This project aims to strengthen gas supply for the Gawler region of South Business Review Australian Gas Networks Australia by constructing a gate station that will improve gas security, provide better data, and make pipelines ready for future regional development. The project is scheduled for completion by 30 June 2026, with actual progress depending on the interfacing arrangements. Corporate Governance In Victoria, the Wollert North City Gate project is currently underway, with commissioning deferred to 2026 due to access constraints to the land owned by the developer.

### What the price says

The price assumes cash profits grow 8.4% yearly over ten years; actual decline was 2.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:00.143Z); Ten-year compound average after fade. Initial solved rate 0.10766921276883323. Price 60.6; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.6232670061033283 → FY2025 2.9274951488386294. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 72.95 per share

- 2016-11: HKD 74.00 per share

- 2016-12: HKD 68.35 per share

- 2017-01: HKD 74.55 per share

- 2017-02: HKD 69.65 per share

- 2017-03: HKD 67.00 per share

- 2017-04: HKD 70.00 per share

- 2017-05: HKD 69.80 per share

- 2017-06: HKD 68.95 per share

- 2017-07: HKD 77.40 per share

- 2017-08: HKD 69.00 per share

- 2017-09: HKD 67.65 per share

- 2017-10: HKD 67.60 per share

- 2017-11: HKD 66.70 per share

- 2017-12: HKD 65.95 per share

- 2018-01: HKD 69.55 per share

- 2018-02: HKD 66.55 per share

- 2018-03: HKD 69.95 per share

- 2018-04: HKD 58.45 per share

- 2018-05: HKD 54.55 per share

- 2018-06: HKD 54.85 per share

- 2018-07: HKD 55.55 per share

- 2018-08: HKD 55.05 per share

- 2018-09: HKD 54.50 per share

- 2018-10: HKD 52.35 per share

- 2018-11: HKD 53.00 per share

- 2018-12: HKD 54.50 per share

- 2019-01: HKD 52.75 per share

- 2019-02: HKD 54.50 per share

- 2019-03: HKD 54.45 per share

- 2019-04: HKD 54.70 per share

- 2019-05: HKD 54.20 per share

- 2019-06: HKD 56.20 per share

- 2019-07: HKD 56.15 per share

- 2019-08: HKD 52.20 per share

- 2019-09: HKD 52.65 per share

- 2019-10: HKD 55.95 per share

- 2019-11: HKD 54.45 per share

- 2019-12: HKD 57.00 per share

- 2020-01: HKD 56.30 per share

- 2020-02: HKD 55.50 per share

- 2020-03: HKD 46.35 per share

- 2020-04: HKD 51.85 per share

- 2020-05: HKD 43.15 per share

- 2020-06: HKD 42.15 per share

- 2020-07: HKD 43.15 per share

- 2020-08: HKD 44.40 per share

- 2020-09: HKD 40.60 per share

- 2020-10: HKD 39.85 per share

- 2020-11: HKD 40.80 per share

- 2020-12: HKD 42.00 per share

- 2021-01: HKD 41.30 per share

- 2021-02: HKD 43.10 per share

- 2021-03: HKD 45.90 per share

- 2021-04: HKD 47.75 per share

- 2021-05: HKD 47.45 per share

- 2021-06: HKD 47.65 per share

- 2021-07: HKD 50.20 per share

- 2021-08: HKD 48.85 per share

- 2021-09: HKD 45.80 per share

- 2021-10: HKD 47.45 per share

- 2021-11: HKD 46.95 per share

- 2021-12: HKD 48.60 per share

- 2022-01: HKD 47.85 per share

- 2022-02: HKD 49.25 per share

- 2022-03: HKD 51.05 per share

- 2022-04: HKD 52.85 per share

- 2022-05: HKD 51.25 per share

- 2022-06: HKD 49.35 per share

- 2022-07: HKD 51.35 per share

- 2022-08: HKD 47.00 per share

- 2022-09: HKD 39.40 per share

- 2022-10: HKD 37.55 per share

- 2022-11: HKD 40.15 per share

- 2022-12: HKD 42.75 per share

- 2023-01: HKD 44.30 per share

- 2023-02: HKD 42.00 per share

- 2023-03: HKD 42.10 per share

- 2023-04: HKD 44.80 per share

- 2023-05: HKD 42.15 per share

- 2023-06: HKD 41.05 per share

- 2023-07: HKD 40.80 per share

- 2023-08: HKD 38.65 per share

- 2023-09: HKD 37.90 per share

- 2023-10: HKD 37.40 per share

- 2023-11: HKD 40.75 per share

- 2023-12: HKD 45.25 per share

- 2024-01: HKD 45.80 per share

- 2024-02: HKD 47.10 per share

- 2024-03: HKD 45.80 per share

- 2024-04: HKD 45.05 per share

- 2024-05: HKD 43.30 per share

- 2024-06: HKD 42.25 per share

- 2024-07: HKD 49.80 per share

- 2024-08: HKD 54.45 per share

- 2024-09: HKD 49.80 per share

- 2024-10: HKD 51.75 per share

- 2024-11: HKD 51.00 per share

- 2024-12: HKD 54.20 per share

- 2025-01: HKD 50.35 per share

- 2025-02: HKD 52.70 per share

- 2025-03: HKD 46.60 per share

- 2025-04: HKD 51.35 per share

- 2025-05: HKD 49.65 per share

- 2025-06: HKD 50.45 per share

- 2025-07: HKD 51.70 per share

- 2025-08: HKD 50.75 per share

- 2025-09: HKD 49.28 per share

- 2025-10: HKD 49.36 per share

- 2025-11: HKD 52.05 per share

- 2025-12: HKD 55.15 per share

- 2026-01: HKD 60.65 per share

- 2026-02: HKD 63.45 per share

- 2026-03: HKD 61.05 per share

- 2026-04: HKD 64.55 per share

- 2026-05: HKD 60.10 per share

- 2026-06: HKD 57.10 per share

- 2026-07: HKD 59.05 per share

- 2026-08: HKD 60.20 per share

- 2026-09: HKD 59.65 per share

- 2026-10: HKD 60.60 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 61.77 per share, central HKD 66.30 per share, high HKD 72.33 per share

- FY2017: low HKD 54.50 per share, central HKD 60.37 per share, high HKD 68.19 per share

- FY2018: low HKD 49.13 per share, central HKD 55.56 per share, high HKD 64.13 per share

- FY2019: low HKD 38.79 per share, central HKD 43.82 per share, high HKD 50.52 per share

- FY2020: low HKD 34.94 per share, central HKD 39.40 per share, high HKD 45.35 per share

- FY2021: low HKD 34.24 per share, central HKD 38.66 per share, high HKD 44.55 per share

- FY2022: low HKD 34.05 per share, central HKD 38.37 per share, high HKD 44.11 per share

- FY2023: low HKD 33.86 per share, central HKD 38.25 per share, high HKD 44.11 per share

- FY2024: low HKD 23.96 per share, central HKD 27.09 per share, high HKD 31.25 per share

- FY2025: low HKD 20.21 per share, central HKD 22.84 per share, high HKD 26.33 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.