Citigroup: CLP Holdings (00002) full-year profit falls short of expectations, profits from Australian operations plummeted by more than 80%.

Citibank released a research report stating that CLP Holdings (00002) is expected to see a 10.8% year-on-year decrease in profit to 10.468 billion yuan in 2025, which is 6% lower than market expectations. Excluding one-time projects, the operating profit before fair value changes is expected to see a 2.4% year-on-year decrease to 10.685 billion yuan. In addition, the annual dividend is expected to increase by 1.6% to 3.2 Hong Kong dollars, with a fourth-quarter dividend of 1.31 Hong Kong dollars, representing a 4% increase. The bank currently has a target price of 76 Hong Kong dollars and a "buy" rating. The bank believes that the Hong Kong business performed steadily during the period, with a 7.3% year-on-year increase in profit to 9.544 billion yuan, accounting for 91% of total profit, an increase of 15 percentage points compared to the previous year. However, the operating profit of the Australian business fell sharply by 85.6% to 85 million yuan, mainly due to pressure from the retail market and transformation costs, which were not offset by the earnings from power generation and flexible capacity. Meanwhile, the profit of the Chinese business also decreased by 13.7% year-on-year to 1.598 billion yuan, as the income from new renewable energy capacity was offset by lower contributions from nuclear power due to a decrease in market electricity prices.