Changjiang Securities·2026-03-02 11:45Investment Rating - The report maintains a "Buy" rating for the company [2][9]. Core Insights - The Hong Kong Stock Exchange achieved record high overall performance in 2025, with revenue and other income reaching HKD 291.61 billion, a year-on-year increase of 30.3%, and net profit attributable to shareholders at HKD 177.54 billion, up 36.0% year-on-year [6][9]. - The report anticipates continued liquidity improvement in the Hong Kong stock market due to a series of connectivity policies, with projected revenues and other income for 2026-2028 at HKD 326.14 billion, HKD 344.03 billion, and HKD 363.26 billion, respectively [2][9]. Summary by Sections Financial Performance - In 2025, the company reported a revenue of HKD 291.61 billion, a 30.3% increase year-on-year, and a net profit of HKD 177.54 billion, reflecting a 36.0% growth [6][9]. - Revenue breakdown shows significant growth in trading and listing-related fees, with trading and transaction system usage fees increasing by 43.73%, listing fees by 20.55%, and settlement and clearing fees by 49.29% [9][10]. Market Activity - The report highlights a substantial increase in trading activity, with the average daily turnover of stock securities rising by 92.9% year-on-year, and significant increases in the average daily turnover for both Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect [9][10]. - The number of new listings in the stock market reached 119, with fundraising amounts increasing by 236.1% year-on-year, contributing to a rise in listing fees [9][10]. Future Projections - The company is expected to see continued revenue growth, with forecasts for net profit attributable to shareholders of HKD 203.53 billion, HKD 214.24 billion, and HKD 225.93 billion for 2026-2028 [2][10]. - The projected price-to-earnings (PE) ratios for the upcoming years are 25.88, 24.58, and 23.31, indicating a favorable valuation trend [2][10].