HKEX(00388) 长江证券·2025-03-04 10:42Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (0388.HK) [8]. Core Views - In the medium to long term, the report anticipates that a series of connectivity policies will enhance the basic conditions for recovery in the capital market, leading to increased liquidity and overall market activity and valuation for the Hong Kong stock market [2][6]. - The company achieved revenue and other income of HKD 223.74 billion in 2024, representing a year-on-year increase of 9.06%, and a net profit attributable to shareholders of HKD 130.50 billion, up 10.0% year-on-year [6]. Summary by Relevant Sections Financial Performance - For the full year 2024, Hong Kong Exchanges reported a revenue of HKD 223.74 billion, a 9.06% increase year-on-year, and a net profit of HKD 130.50 billion, reflecting a 10.0% year-on-year growth. In Q4 2024, the net profit increased by 45.55% and 20.19% on a year-on-year and quarter-on-quarter basis, respectively [6][10]. - The breakdown of revenue sources shows that trading and trading system usage fees, listing fees, settlement and clearing fees, and other income have varied growth rates, with trading fees increasing by 18.22% and settlement fees by 21.42% [6][10]. Market Activity - The report highlights a significant increase in trading activity across various markets, with the average daily turnover in the stock market rising by 28.8% year-on-year and the average daily turnover in the Shanghai-Hong Kong Stock Connect increasing by 38.6% [6][10]. - The report notes that the number of new listings increased, with 71 new companies listed in 2024, raising a total of HKD 23.2 billion, despite a slight decline in listing fees [6][10]. Future Projections - The report projects that the company will achieve revenue and other income of HKD 252.28 billion, HKD 275.24 billion, and HKD 296.54 billion for the years 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is expected to be HKD 149.92 billion, HKD 164.50 billion, and HKD 177.93 billion for the same years [2][10]. - Corresponding PE ratios are forecasted to be 30.87, 28.13, and 26.01 for the years 2025, 2026, and 2027, respectively [2][10].