Ge Long Hui·2025-11-08 04:29Core Viewpoint - The company shows significant revenue growth driven by trading and settlement fees, with a positive outlook for future performance and valuation improvement [1][2][3][4] Group 1: Financial Performance - For the first three quarters of 2025, the company's revenue and profit attributable to shareholders reached HKD 218.5 billion and HKD 134.2 billion, respectively, representing year-on-year increases of 37% and 45% [1] - In Q3 alone, the revenue and profit were HKD 78 billion and HKD 49 billion, showing year-on-year growth of 45% and 56%, and quarter-on-quarter growth of 8% and 10% [1] - The trading, settlement, listing, custody, data, and other net investment income saw year-on-year increases of 57%, 66%, 16%, 25%, 8%, 10%, and 4%, respectively [1] Group 2: Market Dynamics - The trading fees and system usage fees for the first three quarters of 2025 amounted to HKD 78 billion, up 57% year-on-year, with spot, derivatives, and commodity trading contributing HKD 47 billion, HKD 20 billion, and HKD 11 billion, respectively [2] - The settlement and clearing fees reached HKD 53 billion, reflecting a 66% year-on-year increase, driven by record trading volumes in the Hong Kong spot market [2] - The number of new listings in the Hong Kong market increased to 69, a 53% year-on-year rise, with total fundraising amounting to HKD 1,883 billion, more than three times that of the same period in 2024 [3] Group 3: Investment Returns and Valuation - The net investment income for the first three quarters of 2025 was HKD 38.9 billion, a 4% year-on-year increase, although the investment yield decreased due to lower returns from external investment portfolios [4] - The expected dividend yield for 2025 is 3.0%, assuming a constant payout ratio of 90%, with potential benefits from foreign capital inflow due to anticipated interest rate cuts by the Federal Reserve [4] - The current price-to-earnings ratio (PE) is 31.2 times, positioned at the 22nd percentile over the past decade, indicating potential for valuation improvement [4]