Jinwu Financial News | According to the Huacheng Securities Research Report, the Hong Kong Stock Exchange (00388) released the 2024 three-quarter report. The first three quarters of 2024 achieved operating income of HK$15.993 billion (+2.1% YoY) and net profit to mother of HK$9.27 billion (+0.1% YoY). In 2024Q3, we achieved operating income of HK$5.372 billion (+5.7% YoY) and net profit to mother of HK$3.145 billion (+6.5% YoY). In terms of revenue structure, as market activity picked up, the share of transaction fees and settlement fees increased. In terms of the spot segment, favorable internal and external resonance led to an increase in the popularity of trading, and a marginal recovery in the IPO market. In the equity securities and financial derivatives segment, trading volume has repeatedly reached new highs due to market fluctuations, and listing fees have declined year-on-year.
According to the bank, the Hong Kong Stock Exchange leads the industry in ROE and continues to pay attention to shareholder returns. At this stage, the core driver of the company's performance is trading activity in the Hong Kong stock market. The Federal Reserve's interest rate cut cycle has begun, leading to a recovery in market risk appetite, and the past liquidity pressure on the Hong Kong stock market may improve substantially. Meanwhile, mainland China's policy signals are still positive, and the Hong Kong Stock Exchange, as an important contact point for “connecting China to the world,” is expected to benefit first. The popularity of investment in Hong Kong stocks continued unabated in October, and we are optimistic about the elasticity of Q4 company's performance.
The bank raised its profit forecast. The company's 2024/2025/2026 EPS is expected to be HK$9.84/10.78/HK$11.78 (previous value: HK$9.76/10.59/11.45), and the corresponding PE is 32/29/27 times, respectively. According to the comparable company PE valuation method, the company was given a PE valuation of 35 times in 2025, with a corresponding target price of HK$377.3, maintaining a “recommended” rating.
