HKEX(00388) 长江证券·2024-10-29 02:43Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (0388.HK) [6][8]. Core Views - The report highlights that the Hong Kong Exchanges has the basic conditions for recovery in capital market system construction and innovation, supported by a series of mutual access policies. It anticipates that the liquidity of the Hong Kong stock market will gradually increase, leading to a recovery in overall market activity and valuation [4][6]. Summary by Relevant Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue and other income of HKD 15.993 billion, a year-on-year increase of 2.13%. The net profit attributable to shareholders was HKD 9.270 billion, a year-on-year increase of 0.1% [4][5]. - In Q3 2024, the net profit attributable to shareholders increased by 6.50% quarter-on-quarter, while it slightly decreased by 0.32% year-on-year [4]. Revenue Breakdown - The revenue from trading and trading system usage fees, listing fees, settlement and clearing fees, custody and agency services fees, market data fees, and net investment income showed varying growth rates. The growth rates for these segments were +6.48%, -6.07%, +6.92%, -1.11%, -1.47%, and -4.09% respectively [4][5]. Market Activity - The average daily trading volume in the cash market increased by 5.3% year-on-year, while the average daily trading volume for the Shanghai-Hong Kong Stock Connect rose by 14.0% year-on-year, contributing to a 6.92% increase in settlement fee income [5]. - The average daily trading volume in the commodity market saw a significant increase of 25.0%, leading to a 39.1% growth in trading fees and system usage fees for the commodity segment [5]. Future Projections - The report projects that the company will achieve revenue and other income of HKD 22.447 billion, HKD 26.037 billion, and HKD 29.484 billion for the years 2024, 2025, and 2026 respectively. The net profit attributable to shareholders is expected to be HKD 13.371 billion, HKD 16.270 billion, and HKD 18.262 billion for the same years, with corresponding PE ratios of 29.55, 24.28, and 21.63 [4][6].