Is 2638.HK overvalued or undervalued?

2638.HK currently has a P/E ratio of 17.71. Relative to the sector average of 10.40, this suggests the stock may be overvalued. A higher P/E than peers means investors are paying more for each unit of earnings, often because they expect faster future growth. However, if that growth does not materialize, the stock can appear overvalued. A lower P/E may indicate weaker growth expectations or higher risk, but it can also signal a potential valuation discount.

Can I buy fractional shares of 2638.HK?

Yes. Through fractional investing, you can invest exactly the amount you want, starting with as little as $1 or $5 USD (depending on what investment platform you use), and own a proportional piece of the company.

Does buying 2638.HK protect my money against local inflation?

Many investors in Latin America buy international stocks like 2638.HK to protect their purchasing power. Because 2638.HK is priced in foreign currency, your investment is tied to a hard currency. If your local currency devalues against the foreign currency, usually USD or Euro, the underlying value of your stock portfolio remains protected from local inflation.

Do I need a foreign bank account or a Visa to buy 2638.HK shares?

No. A common misconception is that you need a foreign bank account or a foreign visa to invest in international stocks. Today, modern investment platforms allow you to fund your account using local bank transfers or local payment methods right from your home country.

Is 2638.HK a suitable investment for my portfolio?

There is no universal answer, since fit depends on your situation, not just the stock. Think about three things: how well 2638.HK diversifies what you already own, whether you can stomach its price swings given your risk tolerance, and how long you plan to stay invested. As a rule, a single stock works best as one piece of a broader asset allocation and with a multi-year time horizon. This is general information, not personalized financial advice.

All stocks2638.HK

HK Electric Investments and HK Electric Investments Limited

HK$6.20+HK$0.02+0.24%

HKSE / HKD

Market cap

HK$54.8B

P/E

17.7

EPS (TTM)

HK$0.05

Dividend yield

5.17%

Beta

0.60

1Y return

+3.68%

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Financials

The numbers behind the company

Revenue vs net income

RevenueNet income

$1.5B2021

$1.4B2022

$1.5B2023

$1.6B2024

$1.6B2025

Financial health

Gross margin

Operating margin

ROE

ROA

Debt to equity1.04Moderate
Current ratio0.47
Cash ratio0.01
Net margin27.0%
Free cash flow—

Valuation

Is it expensive right now

P/E vs the market

scale 0–50

0153050

2638.HK17.7
Utilities sector median10.4
S&P 50022.0

Trades about 70% above its sector, the market expects faster growth.

Ratios

PEG0.18
Price to book1.12
EPS (TTM)HK$0.05
Payout ratio8,398%
FCF yield6.09%

Range & risk

HK$5.90HK$7.10

Trading in the lower third of its 52-week band

Beta0.60

Profile

What HK Electric Investments and HK Electric Investments Limited actually does

Operating as an investment holding firm, HK Electric Investments and HK Electric Investments Limited is responsible for the generation, transmission, and distribution of electrical power throughout Hong Kong Island and Lamma Island. By December 31, 2021, the company's power production capabilities encompassed an installed capacity of 3,617 megawatts, utilizing a mix of six coal-fired units, five oil-fired gas turbines, three gas-fired combined-cycle units, a solar power system, and a wind turbine. Its infrastructure further boasted a comprehensive 6,734-kilometer transmission and distribution grid, supported by 4,100 substations and 6,300 transformers. Through this extensive network, it supplied electricity to 584,000 clients across residential, commercial, and industrial segments. The company was established in 1889 and maintains its principal offices in Hong Kong.

CEO

Cho Ying Cheng

Employees

1,622

Headquarters

Hong Kong

Founded

2014-01-29

Company website

If you had invested a decade ago

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Community sentiment

Bullish—

Distribution

Bearish0%
Neutral0%
Bullish0%

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Q&A

Questions people ask

2638.HK has a beta of 0.60, which indicates how sensitive it has historically been to movements in its broader market. A beta below 1 indicates lower relative volatility than the market. Beta is based on historical data and does not predict future performance.

HK Electric Investments and HK Electric Investments Limited