Hua Yuan Zheng Quan·2026-03-04 11:32Investment Rating - The investment rating for Hong Kong Exchanges and Clearing Limited is "Buy" (maintained) [5] Core Views - The company's full-year operating data for 2025 met expectations, with total revenue and net profit attributable to shareholders increasing by 30% and 36% year-on-year to HKD 29.2 billion and HKD 17.8 billion, respectively [5] - The company continues to implement a series of proactive strategic measures to enhance its market position [7] Summary by Relevant Sections Market Performance - Closing price as of March 4, 2026, was HKD 404.80, with a one-year high/low of HKD 466.00/HKD 283.20 [3] Financial Performance - In 2025, the revenue structure comprised 50% from cash equities, 24% from derivatives, and 11% from commodities [6] - Cash equities revenue increased by 56% year-on-year to HKD 14.7 billion, driven by strong trading volume, with average daily turnover rising by 90% to HKD 249.8 billion [8] - The investment income for 2025 rose by HKD 184 million to HKD 5.11 billion, with expectations for 2026 influenced by various factors [9] Strategic Initiatives - The company acquired a 20% stake in a clearing house for HKD 455 million to strengthen its fixed income and currency product offerings [9] - In 2025, seven international issuers from countries such as Kazakhstan and Singapore listed on the exchange, indicating its role in connecting mainland China with the global market [9] Profit Forecast and Valuation - Projected net profits for 2026-2028 are HKD 18.6 billion, HKD 20.6 billion, and HKD 22.9 billion, with respective growth rates of 4.8%, 10.5%, and 11.2% [9] - The current price-to-earnings ratios for 2026-2028 are 27.5, 24.9, and 22.4 times [9]