HKEX(00388) 长江证券·2024-08-23 07:44Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (0388.HK) [7] Core Views - The report indicates that the Hong Kong Exchanges has the basic conditions for recovery in capital market system construction and innovation, supported by a series of connectivity policies. It anticipates a gradual increase in market liquidity due to expectations of interest rate cuts by the Federal Reserve, which may lead to a revival in market activity and valuations [6][5] - Revenue and other income are projected to reach HKD 218.34 billion, HKD 226.85 billion, and HKD 242.67 billion for the years 2024, 2025, and 2026 respectively. The attributable net profit is expected to be HKD 126.77 billion, HKD 130.63 billion, and HKD 138.60 billion for the same years, corresponding to PE ratios of 22.86, 22.19, and 20.91 [6][5] Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue and other income of HKD 106.21 billion, a year-on-year increase of 0.43%. The attributable net profit was HKD 61.25 billion, a decrease of 3.0% year-on-year. The second quarter of 2024 showed a strong performance with net profit increasing by 8.64% and 6.23% quarter-on-quarter [5][6] - The breakdown of revenue sources shows that trading and trading system usage fees increased by 3.39%, while listing fees decreased by 7.64%. Other fees such as settlement and custody services also showed varied growth rates [5][6] Market Activity - The report highlights a significant increase in trading activity in the commodity market, with the average daily trading volume of LME metal contracts rising by 29.1%, leading to a 42.7% increase in trading fees from the commodity segment [6][5] - The report notes a decline in IPO activity, with listing fees dropping by 3.8% and the number of new listings at 30, raising HKD 11.3% less than the previous year [5][6] Future Projections - The report projects that the company will see a steady increase in revenue and net profit over the next three years, with specific figures outlined for each year [6][5] - The anticipated growth in revenue is supported by expected improvements in market liquidity and overall market activity, driven by favorable macroeconomic conditions [6][5]