Zhi Tong Cai Jing·2026-03-05 09:11Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) is expected to perform well in 2025, with a strategic focus on growth, projecting net profits for 2026-2028 to be HKD 186 billion, HKD 206 billion, and HKD 229 billion, representing year-on-year growth rates of 4.8%, 10.5%, and 11.2% respectively, with current price-to-earnings ratios of 27.5, 24.9, and 22.4 times [1] Group 1: Financial Performance - In 2025, HKEX reported a 30% year-on-year increase in total revenue and other income to HKD 292 billion, and a 36% increase in net profit attributable to shareholders to HKD 178 billion, with Q4 showing a 15% year-on-year growth, slightly down from Q3 [1] - The revenue structure for 2025 showed that cash, derivatives, and commodities accounted for 50%, 24%, and 11% of total revenue respectively [1] - Cash business revenue increased by 56% year-on-year to HKD 147 billion, driven by strong trading volume, with the average daily turnover (ADT) rising by 90% to HKD 2,498 billion [1] - The revenue from the Stock Connect program increased by HKD 15.7 billion year-on-year to HKD 43.2 billion, accounting for 14.8% of HKEX's total revenue [1] Group 2: Derivatives Performance - The trading volume of financial derivatives showed divergence, with total revenue and other income increasing by 11%, but below the overall company growth rate [2] - The average daily trading volume of futures contracts decreased by 6% due to a 16% drop in daily average contracts for the Hang Seng Index and Hang Seng China Enterprises Index, leading to a 7% decline in futures trading revenue [2] - Conversely, the daily trading volume of stock options increased by 22%, with higher fee options trading becoming more active, offsetting the decline in futures trading revenue [2] Group 3: Investment and Strategic Initiatives - In 2025, HKEX's net investment income increased by HKD 1.84 billion to HKD 51.1 billion, with expectations for 2026 influenced by various factors including collateral arrangements and fluctuations in HIBOR [3] - Operating expenses for 2025 increased by only 2% year-on-year, with EBITDA growth outpacing revenue growth by 10 percentage points, reflecting the company's scale effects and cost control capabilities [3] - HKEX is actively pursuing strategic measures to enhance its multi-asset ecosystem, including acquiring a 20% stake in a clearing company for HKD 4.55 billion, which will strengthen its fixed income and currency product offerings [4] - The exchange is also expanding its international influence, with seven international issuers from countries like Kazakhstan, Singapore, Thailand, and the UAE listing in 2025, and over ten international companies currently in the IPO queue [4]