Changjiang Securities·2026-03-12 09:07Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Insights - As of March 9, 2026, the company's PE ratio stands at 29.06x, which is in the 12th percentile historically since 2016, indicating a certain level of value for allocation. It is expected that with the continuous enhancement of the mutual access policy in the Hong Kong capital market, liquidity in the Hong Kong stock market will continue to rise, leading to an increase in overall market activity and valuation. The company is projected to achieve revenues and other income of HKD 365 billion, 391 billion, and 413 billion for 2026-2028, with net profit attributable to shareholders of HKD 226 billion, 241 billion, and 256 billion, corresponding to PE valuations of 22.9x, 21.4x, and 20.2x respectively [2][52]. Company Overview - The Hong Kong stock market experienced overall fluctuations in February, with the trading activity of listed securities on the Hong Kong Stock Exchange remaining high. The monthly average daily turnover (ADT) for February was HKD 2,468 billion, reflecting a decrease of 9.4% month-on-month and 17.0% year-on-year. However, the overall trading activity remains at historical highs [8][11][17]. Market Environment - The overall market trading remains high, and performance is expected to grow alongside market increases. The total market capitalization of Hong Kong stocks as of the end of February 2026 was HKD 498.76 billion, up 27.5% year-on-year, despite a month-on-month decrease of 1.8% [9][11]. Derivatives Market - In the derivatives market, both futures and options trading volumes increased month-on-month. The average daily volume (ADV) for futures was 68.4 million contracts, up 3.8% month-on-month but down 25.5% year-on-year. The ADV for options was 105.0 million contracts, showing a slight increase of 0.2% month-on-month but a decrease of 21.9% year-on-year [21][22]. Primary Market - The IPO scale in the Hong Kong stock market saw significant growth in February, with a total of 24 new stocks listed, raising a total of HKD 923 billion, which is a year-on-year increase of 1052.4%. The average scale of each IPO was HKD 38.5 billion, up 332.2% year-on-year [31][32].