Ge Long Hui·2025-08-21 19:30Core Insights - Hong Kong Stock Exchange reported strong financial performance for the first half of 2025, with revenue and other income reaching HKD 14.076 billion, a year-on-year increase of 32.53%, and net profit attributable to shareholders at HKD 8.519 billion, up 39.1% [1] Revenue Breakdown - Revenue from trading and trading system usage fees increased by 49.12%, while listing fees rose by 12.55%, settlement and clearing fees by 48.47%, and custody and agency service fees by 23.25% [1] - Market data fees and investment income also saw growth, with increases of 6.20% and 14.04% respectively, contributing to a diversified revenue stream [1] Market Activity - Significant growth in trading activity was observed, with average daily turnover in the stock market increasing by 122.1% year-on-year, and daily turnover for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect rising by 31.6% and 196.0% respectively [2] - Derivatives market trading fees grew by 13.8%, driven by increased activity in stock options and warrants [2] - The commodity market also saw a 3.8% increase in average daily turnover for LME metal contracts, leading to a 5.7% rise in trading fees [2] Listing and Investment Income - The number of new listings in the first half of 2025 reached 44, with fundraising amounts increasing by 716.4%, contributing to a 29.6% rise in listing fees [2] - Investment income from margin and clearing house funds increased by 13.02%, with net investment income rising by 15.87% due to increased fund size and favorable exchange rate movements [3] Future Outlook - The company is expected to benefit from ongoing connectivity policies, with projected revenues of HKD 28.344 billion, HKD 30.343 billion, and HKD 32.226 billion for 2025-2027, alongside net profits of HKD 17.618 billion, HKD 18.876 billion, and HKD 20.046 billion [3] - Corresponding PE ratios are forecasted to be 31.75, 29.63, and 27.90 times for the same period, indicating a positive investment outlook [3]