Morgan Stanley predicts that Hong Kong Exchanges and Clearing Limited (00388) net investment income will decline by 11% on a quarterly basis, but increase by 5% year-on-year. Net investment income for the second quarter of this year is expected to be 1.2 billion yuan.
According to the research report released by Morgan Stanley, it is expected that the profit of Hong Kong Exchanges and Clearing Limited (00388) in the second quarter will partially recover, with a 14% year-on-year increase in net profit. However, its sustainability may still depend on trade activities: Under the condition of low cost-to-income ratio, revenue is expected to increase by 12%, and profit growth will exceed revenue. The target price is 223 Hong Kong dollars with a "shareholding" rating.
The report pointed out that the average daily trading volume of Hong Kong Exchanges and Clearing Limited in the second quarter of this year was 122 billion yuan, an increase of 18% year-on-year and 22% quarterly, especially in May, the average daily trading volume was 140 billion yuan. The bank pointed out that due to the decline in interest rates, the net investment income of Hong Kong Exchanges and Clearing Limited is expected to decrease by 11% on a quarterly basis, but increase by 5% year-on-year. Net investment income for the second quarter of this year is expected to be 1.2 billion yuan, accounting for about 21% of total revenue.