POWER ASSETS

Power Assets Holdings declined 1.54% to HKD 60.55 today, mainly reflecting profit-taking after a week-long rally that added 3.48%. The company's 1H26 interim results showed net profit of HKD 14.704 billion, surging 383% year-over-year, with interim dividend maintained at HKD 0.78 per share. Broker views diverge: UBS raised its target to HKD 73, while Huatai and HSBC remain Buy-rated, though Citi cut to HKD 66.5, reflecting different takes on earnings sustainability. The stock trades 9.69% below its 52-week high of HKD 67.05 and 9.79% above its year-start level. At HKD 60.55, it remains above both its 20-day moving average of HKD 59.345 and 60-day moving average of HKD 58.092. With a P/E of just 7.21x and dividend yield of 4.66%, valuation metrics show strong appeal, though questions persist around the sustainability of triple-digit profit growth.

Power Assets declined 1.5% today as profit-taking pressure mounted following last week's 3.48% cumulative rally. The selloff was compounded by concerns over H1 revenue falling 15%, even as net profit surged 383% to HK$7.352 billion, with interim dividend held steady at HK$0.78 per share. Analyst sentiment split notably—UBS raised target price to HK$73 backing the earnings recovery, while Citi trimmed to HK$66.5 citing management's cooled guidance on special dividends. From a valuation perspective, the stock's low PE of 7.32 and 4.59% dividend yield appear attractive, though it currently trades 8% below the 52-week high of HK$67.05, having risen 11.51% year-to-date.

Power Assets (6.HK) rose 1.8% to close at HK$62.45, primarily driven by strong interim results. The company's H1 2026 net profit surged to HK$14.704 billion, up 383% year-on-year despite revenue falling 15.34% to HK$149 million, as cost control and asset appreciation bolstered earnings. Earnings per share reached HK$3.45, up 383% YoY, with interim dividend maintained at HK$0.78 per share, signaling management confidence. Institutional responses were mixed: UBS raised its target price to HK$73, Huatai maintained a buy rating, while Citi cut its target to HK$66.5 citing cooled expectations for special dividends. Technically, the stock trades above both 20-day (HK$59.16) and 60-day (HK$58.07) moving averages; year-to-date gains of 13.24% position it 6.86% below the 52-week high of HK$67.05. The valuation remains attractive with a PE of 7.44. The afternoon session showed particular strength, with gains accelerating into the close, reflecting sustained market optimism on the earnings beat.

Power Assets edged up to HKD 61.35 today as profit-taking pressures eased, with the afternoon session stabilizing all losses and touching an intraday high of HKD 61.40. H1 2026 results reported a dramatic 383% net profit surge to HKD 7.35B, yet operating revenue contracted 15.34% to HKD 149M, with earnings growth driven primarily by investment gains rather than operational improvements. The maintained interim dividend of HKD 0.78 per share—unchanged year-on-year—has split analyst sentiment: Citi lowered its target price to HKD 66.5, while UBS upheld HKD 73 and both Huatai Securities and HSBC reiterated buy ratings. Valuation remains compelling with a PE of just 7.3x, PB of 1.27x, and a dividend yield of 4.6%. Year-to-date the stock has climbed 11.24%, still trading 8.5% below its 52-week peak of HKD 67.05, supported above both its 20-day and 60-day moving averages.

Power Assets edged up 0.33% to HKD60.85 today, with intraday strength peaking at HKD61.05 before retreating, reflecting mixed market reaction to the interim results. H1 net profit surged to HKD14.7 billion with a 383% year-over-year jump while interim dividends were maintained at HKD0.78, prompting divergent analyst views: UBS lifted target price to HKD73 endorsing results as in-line with expectations, whilst Citi trimmed to HKD66.5 and signaled management's more cautious stance on special dividends, cooling market enthusiasm. Yet operating revenue declined 15.34% year-over-year to HKD298 million, with profit growth predominantly driven by investment gains rather than core operations, raising sustainability concerns. From a valuation perspective, the stock has advanced 10.34% year-to-date but remains roughly 9.25% below the 52-week high of HKD67.05, trading at a lean PE of 7.25x and PB of 1.26x.