Goldman Sachs expects the HKEx's compound annual growth rate to shrink by about 16% in the 2024-26 fiscal year.
The Zhitong Finance App learned that Goldman Sachs released a research report stating that it raised the Hong Kong Stock Exchange's (00388) 2024-26 earnings per share forecast by 3% to reflect recent increases in stock market turnover and raised the target price by 3.9% to HK$318 from HK$306. The stock is mainly driven by Hong Kong stock market turnover, and its revenue contribution is around 40%. Improved sentiment in mainland stock markets, lower real interest rates, and a rebound in IPO activity may help further improve profits. The bank emphasized that the risk return on the Hong Kong Stock Exchange is still attractive, and the rating is “Convinced Buy.”
The bank pointed out that about 85%-90% of the investment income of the Hong Kong Stock Exchange is sensitive to interest rates. Although increased trading volume, improved market sentiment, and a corresponding increase in open positions in the derivatives business may increase revenue, it is still affected by the level of Hong Kong Interbank Interest Rate (HIBOR). The bank expects the 2024-26 CAGR to shrink by about 16%.
