EBSCN·2024-04-25 05:32Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (0388.HK) [1] Core Views - The trading activity has rebounded on a month-on-month basis, with continued robust performance in cross-border trading [1] - The company's total revenue for Q1 2024 was HKD 5.2 billion, a year-on-year decrease of 6.4% but an increase of 7.1% quarter-on-quarter [4][5] - The net profit attributable to shareholders was HKD 2.97 billion, down 12.9% year-on-year but up 14.4% quarter-on-quarter [4][5] - The EBITDA margin was 72%, reflecting a year-on-year decrease of 4 percentage points but an increase of 4 percentage points quarter-on-quarter [4][5] Summary by Sections Market Data - Total shares outstanding: 1.268 billion [2] - Total market capitalization: HKD 303.013 billion [2] - 1-year low/high stock price: HKD 212.2 / 336 [2] - 3-month turnover rate: 41.4% [2] Financial Performance - Q1 2024 total revenue: HKD 5.2 billion, down 6.4% year-on-year, up 7.1% quarter-on-quarter [4][5] - Main business revenue: HKD 4.66 billion, down 6.9% year-on-year, up 3.1% quarter-on-quarter [4][5] - Net profit attributable to shareholders: HKD 2.97 billion, down 12.9% year-on-year, up 14.4% quarter-on-quarter [4][5] - Investment income: HKD 1.34 billion, down 12.6% year-on-year, up 25.2% quarter-on-quarter [5] Trading Activity - Average daily trading volume for Hong Kong stocks: HKD 99.4 billion, down 22.2% year-on-year, up 9.2% quarter-on-quarter [5] - Average daily trading volume for derivatives: HKD 10.3 billion, down 21.4% year-on-year, down 2.8% quarter-on-quarter [5] - Northbound and southbound trading daily turnover: RMB 133 billion and HKD 31 billion, respectively [5] Investment Outlook - The report suggests that the company is a rare investment target with a balanced risk-reward profile, maintaining the "Buy" rating [6] - The anticipated net profit for 2024-2026 is projected at HKD 12.8 billion, HKD 13.4 billion, and HKD 13.8 billion, respectively [7] - The current stock price corresponds to a PE ratio of 24X for 2024, 23X for 2025, and 22X for 2026 [7]