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<Research> BofAS: HKEX (00388.HK) 1Q Net Profit Far Exceeds Expectations; Valuation Not High, Reiterate Buy with TP HKD520
Recommend 14 Positive 15 Negative 7 |
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BofAS said in a research report that HKEX (00388.HK) recorded a 27% YoY increase in net profit to HKD5.2 billion in 1Q, far exceeding expectations and setting a record high quarterly profit. The strong performance was mainly driven by a 14% YoY increase in turnover to HKD16.6 trillion, with average daily turnover reaching HKD277 billion. Trading fees and clearing fees rose 18% and 33% YoY, respectively, while LME turnover increased 26% YoY. IPO fundraising surged about 5x YoY to HKD110 billion. Although interest income declined YoY due to lower market interest rates, bond investments recorded strong gains. The company maintained effective cost control in 1Q, with the cost-to-income ratio improving from 23% to 20%. The broker expects a positive market reaction to the results, reiterates a Buy rating, and maintains that HKEX is the best proxy for a rebound in the Hong Kong market, with a TP of HKD520. The current share price is equivalent to a forecast 2026 P/E of 28x, at the low end of its past 15-year trading range of 28x to 42x. (ss/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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