In "Major Banks," China International Capital Corporation (CICC) sets a target price of HKD 500 for Hong Kong Exchanges and Clearing (HKEX), highlighting strong fundamentals and the opportunity for capital reallocation due to valuation stagnation

AASTOCKS
2025.11.07 03:15

CICC published a research report indicating that Hong Kong Exchanges and Clearing (00388.HK) will see total revenue grow by 45% year-on-year in the third quarter of 2025, reaching HKD 7.775 billion. Excluding investment income, revenue from core fees is expected to increase by 62% year-on-year to HKD 6.71 billion, with profit rising by 56% year-on-year to HKD 4.9 billion, exceeding market expectations. The main reason for this is the rapid growth of various market-related businesses due to active trading, along with relatively stable investment income.

CICC basically maintains its profit forecast for the company for 2025 to 2026, keeping the "outperforming the industry" rating and target price of HKD 500 unchanged, corresponding to price-to-earnings ratios of 37 times and 36 times for 2025 and 2026, respectively, with an upside potential of 18%

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