Goldman Sachs·2026-02-28 09:40Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing (00388) with a target price of HKD 546 [1] Core Insights - The earnings performance for Q4 2025 is expected to significantly exceed both the bank's and market's expectations, driven by favorable investment income and a decrease in operating expenses [1] - Excluding investment income, earnings are projected to be 5% higher than the bank's forecast, indicating effective cost control [1] - For 2026, the bank forecasts a 4% growth in earnings per share, with a 12% year-on-year increase in revenue excluding investment income [1] - Management emphasized a mid-to-long-term development strategy focused on capturing opportunities in China and positioning the exchange as a hub for regional growth [1] - For 2026, management anticipates that net investment income will be influenced by fluctuations in Hong Kong interbank offered rates and external portfolio redemptions, while the growth rate of operating expenses may accelerate compared to FY 2025 [1]