2026-01-13 02:11Summary of Hong Kong Exchanges (0388.HK) Research Call Company Overview - Company: Hong Kong Exchanges and Clearing Limited (HKEX) - Ticker: 0388.HK - Market Cap: HK$538.3 billion / $69.1 billion Key Financial Updates - Revised EPS Estimates: - 2025E: -0.5% - 2026E: nil - 2027E: -0.6% - 2028E: -0.6% - Target Price: Revised to HK$546 from HK$550, implying a 39X P/E for 2026E [1][2][3] Revenue Projections - Revenue Estimates: - 2024: HK$22,374 million - 2025E: HK$28,525.4 million - 2026E: HK$29,644 million - 2027E: HK$31,457.6 million [3] Earnings Per Share (EPS) Estimates - EPS Estimates: - 2024: HK$10.32 - 2025E: HK$13.64 - 2026E: HK$14.10 - 2027E: HK$14.97 [3] Valuation Metrics - P/E Ratios: - 2024: 25.4X - 2025E: 31.3X - 2026E: 30.3X - 2027E: 28.5X [3] Dividend Information - Dividend Per Share (DPS): - 2024: HK$9.26 - 2025E: HK$12.20 - 2026E: HK$12.69 - 2027E: HK$13.48 - Dividend Yield: - 2024: 3.5% - 2025E: 2.9% - 2026E: 3.0% - 2027E: 3.2% [3] Investment Thesis - Rating: Buy - Investment Thesis: No change to the investment thesis despite revisions in EPS estimates [1][2] Risks Identified - Downside Risks: 1. Increased competition from onshore capital markets 2. Lower trading velocity in the cash market 3. Fee pressure due to reduced fees onshore in China 4. Sustained deflationary environment in China [2] Market Context - Current Price: HK$426.80 - Upside Potential: 27.9% to target price of HK$546 [3] Additional Notes - The report indicates potential conflicts of interest due to Goldman Sachs' business relationships with HKEX [4][14] - The research is part of Goldman Sachs' broader investment analysis and is intended for clients [33][35] This summary encapsulates the essential financial metrics, investment outlook, and risks associated with Hong Kong Exchanges, providing a comprehensive overview for potential investors.