Changjiang Securities·2026-03-03 00:45Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388.HK) [9] Core Views - The overall performance of Hong Kong Exchanges reached a historical high, with revenue and other income for 2025 amounting to HKD 291.61 billion, a year-on-year increase of 30.3%, and a net profit attributable to shareholders of HKD 177.54 billion, up 36.0% year-on-year [5][9] - The report anticipates that with a series of connectivity policies, market liquidity in Hong Kong will continue to rise, leading to increased market activity and valuation [9] Summary by Relevant Sections Financial Performance - In 2025, the company achieved revenue of HKD 291.61 billion, representing a 30.3% increase year-on-year, and a net profit of HKD 177.54 billion, which is a 36.0% increase year-on-year [5][9] - Revenue breakdown by fee type shows significant growth: trading and trading system usage fees increased by 43.73%, listing fees by 20.55%, and settlement and clearing fees by 49.29% [9] Market Activity - The trading activity in the cash, derivatives, and commodities markets saw substantial increases, with the average daily turnover of stock securities rising by 92.9% year-on-year [9] - The report highlights that the number of new listings and the amount raised in the Hong Kong market have also increased significantly, with 119 new companies listed in 2025, raising funds that grew by 236.1% year-on-year [9] Future Projections - The company is projected to achieve revenue and other income of HKD 326.14 billion, HKD 344.03 billion, and HKD 363.26 billion for the years 2026, 2027, and 2028 respectively, with net profits expected to be HKD 203.53 billion, HKD 214.24 billion, and HKD 225.93 billion [9][10] - Corresponding PE ratios are forecasted to be 25.88, 24.58, and 23.31 for the years 2026, 2027, and 2028 [9]