Core Viewpoint - Goldman Sachs maintains a "Buy" rating on Hong Kong Exchanges and Clearing Limited (00388) and raises the target price from HKD 544 to HKD 562, indicating a positive outlook for the stock [1] Financial Performance - The stock is currently trading at approximately 30 times forward P/E, which is below the mid-cycle P/E level of around 35 times [1] - For Q3 2025, the earnings exceeded Goldman Sachs' expectations, primarily due to better-than-expected investment income performance [1] - Core profit, excluding investment income, met expectations, growing by 101% driven by a 141% year-on-year increase in average daily turnover [1] Earnings Forecast Adjustments - Following the inclusion of Q3 performance and recent trading volume trends, Goldman Sachs has raised its earnings per share estimates for fiscal years 2025 to 2028 by 5%, 4%, 4%, and 5% respectively [1] Valuation Drivers - Three key factors are expected to further drive the revaluation of Hong Kong Exchanges and Clearing Limited: 1. Market consensus has raised average daily turnover forecasts [1] 2. The P/E ratio of Hong Kong Exchanges is expanding its premium relative to the Hang Seng Index and Hang Seng Tech Index [1] 3. The growth momentum of listed companies in Hong Kong is recovering [1]

Investment Rating - The investment rating for Hong Kong Exchanges and Clearing Limited is "Buy" (maintained) [1] Core Views - The report highlights a significant improvement in ADT-related businesses, indicating potential for valuation uplift. The company's revenue and profit attributable to shareholders for the first three quarters of 2025 reached HKD 218.5 billion and HKD 134.2 billion, respectively, representing year-on-year increases of 37% and 45% [5][6] - The report anticipates continued high growth in the company's fundamentals, driven by increased trading volumes and a favorable market environment, including the return of Chinese concept stocks and sustained net inflows from southbound capital [5][6] Financial Performance Summary - For Q1-Q3 2025, trading, settlement, listing, custody, data, and other investment net income grew by 57%, 66%, 16%, 25%, 8%, 10%, and 4% year-on-year, respectively. The core driver of revenue growth is the significant increase in trading and settlement fees directly linked to ADT [5][6] - The report revises the ADT assumptions for Hong Kong stocks for 2025-2027 to HKD 2,580 billion, HKD 2,620 billion, and HKD 2,700 billion, reflecting year-on-year growth of 96%, 2%, and 3%, respectively. The forecast for net profit attributable to shareholders is adjusted to HKD 179 billion, HKD 192 billion, and HKD 202 billion for the same period, with corresponding EPS of HKD 14, HKD 15, and HKD 16 [5][6] Market Trends and Drivers - The report notes a robust primary market for Hong Kong stocks, with 69 new listings in Q1-Q3 2025, a 53% increase year-on-year, and total fundraising amounting to HKD 1,883 billion, more than three times that of the same period in 2024. The number of new stock applications being processed reached 297, over three times the 84 applications at the end of 2024 [7] - The report emphasizes that the high trading volume indirectly boosts income from custody, trustee, and agent services, as well as market data fees, which grew by 25% and 8% year-on-year, respectively [7] Valuation and Dividend Outlook - The investment income for Q1-Q3 2025 was HKD 38.9 billion, a 4% year-on-year increase. The expected dividend yield for 2025 is projected at 3.0%, assuming a constant payout ratio of 90%. The report suggests that a potential interest rate cut by the Federal Reserve could drive foreign capital back to the Hong Kong market, benefiting the exchange [8] - The current PE ratio is 31.2, positioned at the 22nd percentile over the past decade, with a dynamic PE of 30.2, indicating potential for valuation improvement [8]

Core Insights - WeRide, a leading global autonomous driving technology company, has successfully listed on the Hong Kong Stock Exchange, becoming the first Robotaxi stock in Hong Kong and the first autonomous driving company to have a dual primary listing in both the US and Hong Kong [1] Company Overview - WeRide's global share issuance totaled 88.25 million shares before the greenshoe option, with a public offering of 17.65 million shares and an international placement of 70.60 million shares after triggering the clawback mechanism [1] - The share price was set at HKD 27.1, resulting in a total fundraising amount of HKD 2.39 billion before the greenshoe option [1]

Core Points - WeRide officially listed on the Hong Kong Stock Exchange on November 6, with the stock code 0800.HK [1] - The total number of shares globally offered before the greenshoe option was 88.25 million, with 17.65 million shares allocated for public offering and 70.6 million shares for international placement [1] - The share price was set at HKD 27.1, raising a total of HKD 2.39 billion before the greenshoe option [1]

Core Viewpoint - WeRide has officially listed on the Hong Kong Stock Exchange, becoming the first Robotaxi stock in Hong Kong and the first autonomous driving technology company to have a dual primary listing in both the US and Hong Kong [1][5]. Group 1: Listing Details - WeRide's global offering totaled 88.25 million shares, with 17.65 million shares available for public offering and 70.6 million shares for international placement, priced at HKD 27.1 per share, raising a total of HKD 2.39 billion before the greenshoe option [1]. - The listing is seen as a significant milestone for the company, enhancing its global strategy and capital strength [5]. Group 2: Company Background and Achievements - Founded in 2017, WeRide became the first global Robotaxi stock listed on NASDAQ on October 25, 2024, and has now successfully entered the Hong Kong market [5][8]. - The company has developed a comprehensive product matrix including Robotaxi, Robobus, Robosweeper, Robovan, and ADAS solutions, leveraging its self-developed WeRide One autonomous driving technology platform [8]. Group 3: Market Position and Future Plans - WeRide is the only company with autonomous driving licenses in seven countries, operating a fleet of over 1,500 L4 autonomous vehicles, including more than 700 Robotaxis [8]. - The company plans to deploy tens of thousands of Robotaxis by 2030, aiming for significant market expansion [8]. Group 4: Strategic Partnerships and Recognition - WeRide has established a strategic ecosystem with top industry players such as Uber, NVIDIA, Bosch, and Grab, showcasing its strategic value and leadership position [9]. - The company has received international recognition, being listed twice in Fortune's "Change the World" and "Global Future 50" rankings, highlighting its growth potential and competitive edge [11].

Major Events - Wangshan Wangshui-B (02630) has set its share price at HKD 33.37, with the Hong Kong public offering receiving a subscription rate of 6,238.42 times [1] - WeRide-W (00800) achieved a subscription rate of 73.44 times for its Hong Kong public offering, raising approximately HKD 2.264 billion from the global offering [1] - Pony.ai-W (02026) had a subscription rate of 15.88 times for its Hong Kong public offering, with a share price set at HKD 139 [1] - Joyson Electronics (00699) saw a subscription rate of 147.67 times for its Hong Kong public offering, with an expected listing date of November 6 [1] - Standard Chartered Group (02888) plans to issue USD 1 billion in fixed-rate reset perpetual subordinated or convertible securities [1] - Crystal Tech Holdings (02228) subsidiary AILUX announced a strategic partnership with Eli Lilly to enhance AI-driven bispecific antibody development [1] - Giant Star Legend (06683) signed a sales contract exceeding HKD 100 million for quadruped robots, accelerating the integration of "IP + Robotics + AI" [1] - HAPO-B (02142) entered into an evaluation and licensing agreement with UMOJA BIOPHARMA [1] Financial Data - Hong Kong Exchanges and Clearing (00388) reported a profit attributable to shareholders of HKD 13.419 billion for the first three quarters, a year-on-year increase of 45%, with both revenue and profit reaching record highs [1] - Fubo Group (03738) experienced a total revenue growth of approximately 27% in the third quarter [1] - Goodbaby International (01086) reported a revenue of approximately HKD 6.42 billion for the first three quarters, reflecting a year-on-year decline of 1.1% [1]

Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388.HK) [1] Core Views - The report highlights significant growth in trading fees and listing fees, driven by high market activity and low operational expenditure growth [1][2] - The company achieved a revenue of HKD 21.851 billion for the first three quarters of 2025, representing a year-on-year increase of 37%, with net profit rising by 45% to HKD 13.419 billion [1] - The report anticipates continued profitability growth, with projected net profits of HKD 17.786 billion, HKD 19.152 billion, and HKD 20.811 billion for 2025, 2026, and 2027 respectively [4] Revenue Breakdown - Trading and transaction fees, listing fees, settlement and clearing fees, and market data fees showed year-on-year growth rates of 57%, 17%, 66%, and 8% respectively, contributing to the overall revenue [1][2] - The average daily trading volume for equity securities increased by 132% year-on-year, leading to a 123% rise in trading fee income [2] - The number of new listings on the Hong Kong Stock Exchange increased by 24 to a total of 69, with IPO and refinancing amounts growing by 239% and 274% respectively [3] Profitability Forecast - The report projects earnings per share (EPS) of HKD 14.07, HKD 15.12, and HKD 16.40 for the years 2025, 2026, and 2027, with corresponding price-to-earnings (P/E) ratios of 30, 28, and 26 [4][8] - The return on equity (ROE) is expected to rise to 31.8% in 2025, indicating strong profitability [8]

Investment Rating - The report maintains a "Strong Buy" investment rating with a target price of 515.00 HKD, indicating a potential upside of 21% from the current price of 425.6 HKD [2][9]. Core Insights - The company reported record-high total revenue of 21.9 billion HKD in Q3 2025, representing a year-on-year increase of 37%. The net profit attributable to shareholders was 13.4 billion HKD, up 45% year-on-year, and EBITDA reached 17.2 billion HKD, reflecting a 48% increase year-on-year [6][9]. - The report highlights strong performance across various business segments, with significant growth in spot trading and derivatives, driven by increased international capital inflow into the Hong Kong market [6][9]. - The report projects continued growth in net profit for the years 2025 to 2027, with expected figures of 17.8 billion HKD, 19.9 billion HKD, and 21.3 billion HKD respectively, indicating year-on-year growth rates of 36%, 12%, and 7% [9]. Summary by Sections Financial Performance - Q3 2025 total revenue was 21.9 billion HKD, with a 37% year-on-year increase. Net profit was 13.4 billion HKD, up 45% year-on-year, and EBITDA was 17.2 billion HKD, reflecting a 48% increase year-on-year. The EBITDA margin improved to 79%, up 5 percentage points year-on-year [6][9]. - The revenue breakdown for Q3 2025 shows significant contributions from various segments: spot trading (11.1 billion HKD, +75% YoY), equity securities and derivatives (5.3 billion HKD, +17% YoY), and others [6][9]. Market Activity - The report notes that the Hong Kong IPO market remains robust, with 69 new listings in Q3 2025, raising 188.3 billion HKD, more than three times the amount raised in Q3 2024 [7][9]. - The average daily trading volume (ADT) for the Hong Kong Stock Exchange reached 238.7 billion HKD in Q3 2025, a 132% increase year-on-year, indicating heightened trading activity [6][9]. Investment Outlook - The report emphasizes the favorable macroeconomic environment, including easing US-China tensions and supportive national policies, which are expected to sustain investor interest in Hong Kong and Asian assets [9]. - The projected financials for the upcoming years indicate a strong growth trajectory, with total revenue expected to reach 29.3 billion HKD in 2025, a 31% increase from 2024 [8][9].

Investment Rating - The report maintains a "Buy" rating for the company [3][8] Core Insights - The company reported a total revenue of HKD 21.85 billion for the first nine months of 2025, representing a year-on-year increase of 37%. The main revenue reached HKD 20.44 billion, up 41% year-on-year, while net profit was HKD 13.42 billion, reflecting a 45% increase year-on-year [6][8] - The report highlights strong trading and settlement fee income driven by active market transactions, while investment income showed a temporary decline [2][8] - The report anticipates continued active trading in the Hong Kong stock market, supported by the return of quality Chinese assets and the extension of connectivity between mainland China and Hong Kong [8] Financial Data and Earnings Forecast - The company’s projected financials for 2023 to 2027 are as follows: - Revenue: HKD 20.52 billion (2023), HKD 22.37 billion (2024), HKD 28.27 billion (2025E), HKD 31.43 billion (2026E), HKD 32.44 billion (2027E) - Net profit: HKD 11.86 billion (2023), HKD 13.05 billion (2024), HKD 17.73 billion (2025E), HKD 19.76 billion (2026E), HKD 20.76 billion (2027E) - Earnings per share: HKD 9.36 (2023), HKD 10.29 (2024), HKD 13.98 (2025E), HKD 15.58 (2026E), HKD 16.37 (2027E) [7][9] - The report indicates a significant increase in trading fees and settlement fees, with trading fees reaching HKD 7.81 billion (39% of total revenue) and settlement fees at HKD 5.27 billion (26% of total revenue) for the first nine months of 2025 [8][9] Market Performance - The report notes that the Hong Kong stock market's IPO fundraising reached HKD 188.3 billion in the first nine months of 2025, which is more than three times the amount from the same period last year [8] - The average daily trading (ADT) for Hong Kong stocks was HKD 2.387 trillion, a year-on-year increase of 132%, with a record high of HKD 2.679 trillion in the third quarter of 2025 [8]

Group 1 - The Hong Kong Stock Exchange (HKEX) announced the initiation of a tender process for the audit work for the fiscal year ending December 31, 2026 [1] - KPMG has been selected as the external auditor for the HKEX group for the fiscal year ending December 31, 2026, pending approval from shareholders at the 2026 annual general meeting [1] - PwC will continue as the auditor for the fiscal year 2025, with their term ending at the conclusion of the 2026 annual general meeting [1]