HKEX(HK:00388) Ge Long Hui·2025-08-21 03:11Core Viewpoint - Goldman Sachs reports that Hong Kong Stock Exchange (HKEX) exceeded expectations in Q2 performance, primarily driven by higher-than-expected investment income [1] Financial Performance - Core profit, excluding investment income, showed a strong year-on-year growth of approximately 40%, aligning with expectations [1] - The average daily turnover in the cash market nearly doubled year-on-year during the period [1] Earnings Forecast - Following the Q2 performance and recent market turnover trends, Goldman Sachs has raised its earnings per share (EPS) forecasts for HKEX for 2025, 2026, and 2027 by 3%, 1%, and 2% respectively [1] - The rating remains "Buy," with the target price increased from HKD 500 to HKD 509 [1] Investment Income Outlook - Management indicated that with the decline in HIBOR and the reduction of external investment portfolios due to funding headquarters acquisitions, the outlook for investment income is expected to weaken [1] - Goldman Sachs' forecasts already incorporate these factors, predicting a year-on-year decline in investment income of approximately 17% and 11% for the next two years [1] - Despite this, strong profit growth is anticipated to continue in the second half of the year [1]