Guolian Minsheng Securities·2026-02-27 10:30Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (0388.HK) [2] Core Insights - The company achieved record high performance in 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 amounting to HKD 17.75 billion, up 36% year-on-year [7] - The strong performance is attributed to increased trading and settlement fees due to record high average daily trading (ADT) in the cash and derivatives markets, as well as robust growth in the Hong Kong IPO market, which led to a significant increase in listing fees [7] - The report forecasts continued revenue growth, with projected total revenues of HKD 29.63 billion in 2026, HKD 30.34 billion in 2027, and HKD 31.15 billion in 2028, reflecting growth rates of 1.6%, 2.4%, and 2.7% respectively [2][8] Financial Performance Summary - In 2025, the company reported: - Trading and transaction system fees of HKD 10.33 billion, up 44% year-on-year - Settlement and clearing fees of HKD 7.04 billion, up 49% year-on-year - Listing fees of HKD 1.79 billion, up 21% year-on-year - Net investment income of HKD 5.11 billion, up 4% year-on-year [8] - The average daily trading in the cash market reached HKD 249.8 billion, a 90% increase year-on-year, with northbound ADT at HKD 212.4 billion, up 42%, and southbound ADT at HKD 121.1 billion, up 151% [7] Market Outlook - The report indicates that the active trading environment in the Hong Kong stock market is expected to continue benefiting the company's performance, with a strong pipeline of IPO applications and ongoing interest from global investors in Chinese assets [7]