Ge Long Hui·2026-02-27 21:54Core Viewpoint - Hong Kong Stock Exchange reported a record high performance for 2025, with total revenue and other income reaching HKD 29.16 billion, a year-on-year increase of 30%, and net profit attributable to shareholders at HKD 17.75 billion, up 36% year-on-year [1] Financial Performance - For 2025, the company achieved total revenue and other income of HKD 29.16 billion, a year-on-year increase of 30%, and net profit attributable to shareholders of HKD 17.75 billion, up 36% year-on-year, marking the second consecutive year of record high performance [1] - In Q4 2025, the company reported revenue and other income of HKD 7.31 billion, a year-on-year increase of 15% but a quarter-on-quarter decrease of 6%, with net profit attributable to shareholders at HKD 4.34 billion, also up 15% year-on-year but down 12% quarter-on-quarter [1] Segment Performance - The company reported growth across all business segments, with trading and transaction system fees reaching HKD 10.33 billion, up 44% year-on-year, driven by record high average daily trading (ADT) in the cash and derivatives markets [2] - Settlement and clearing fees amounted to HKD 7.04 billion, a 49% year-on-year increase, attributed to record high average daily trading volume in the Shanghai and Shenzhen Stock Connect [2] - Listing fees reached HKD 1.79 billion, up 21% year-on-year, due to strong growth in equity financing activities in the Hong Kong market [2] - Net investment income was HKD 5.11 billion, a 4% year-on-year increase, with net investment income from company funds at HKD 1.87 billion, up 7% year-on-year, and an annualized investment return of 5.06%, down 0.03 percentage points year-on-year [2] Market Performance - The Hong Kong stock market showed improved trading activity, with the cash market ADT reaching a historical high of HKD 249.8 billion in 2025, a 90% year-on-year increase [3] - Northbound ADT was HKD 212.4 billion, up 42% year-on-year, while southbound ADT reached HKD 121.1 billion, a significant increase of 151% year-on-year [3] - The ETP market also performed well, with ETPs ADT reaching HKD 36.7 billion, a 94% year-on-year increase [3] - In the IPO market, the Hong Kong Stock Exchange saw 118 companies listed, raising HKD 286.8 billion, a remarkable 227% year-on-year increase [3] Future Outlook - The company is expected to benefit from the active trading environment in the Hong Kong stock market, with projected total revenues of HKD 29.6 billion, HKD 30.3 billion, and HKD 31.2 billion for 2026, 2027, and 2028 respectively, reflecting year-on-year growth of 1.6%, 2.4%, and 2.7% [4] - Net profit attributable to shareholders is projected to be HKD 18.1 billion, HKD 18.4 billion, and HKD 18.8 billion for the same years, with year-on-year growth of 1.7%, 2.1%, and 1.9% [4] - Earnings per share (EPS) are expected to be HKD 14.24, HKD 14.54, and HKD 14.82 for 2026, 2027, and 2028 respectively, with corresponding price-to-earnings (PE) ratios of 29 for 2026 and 2027, and 28 for 2028 [4]