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CICC Chops HKEX (00388.HK) TP to $580 on QoQ Result In-line

AAStocks ·  Oct 28, 2021 02:25
HKEX (00388.HK)'s 3Q revenue came in at HK$5.3 billion, flattish YoY and up 7% QoQ, among which the revenue from its core operation hiked 10% YoY and 12% QoQ to HK$5.11 billion, in line with CICC's estimate, the broker reported. HKEX's net profit dipped 3% YoY and rose 17% QoQ, to HK$3.25 billion, basically in line with the estimate.

To reflect the adjusted assumptions of HKEX's ADT and investment income, CICC reduced the earnings forecasts of HKEX for FY2021 and FY2022 by 1.7% and 5.1%, to HK$12.8 billion and HK$14.6 billion respectively. The broker remarked that, in near-terms, the improvement of investing sentiment in the Hong Kong market will likely become a catalyst for HKEX's share price; while in mid to long-terms, the deepening of the stock connect schemes, continuous reform on the listing system and the building of an offshore financial product center would become the key drivers for the company's growth.

CICC cut HKEX's target price by 5% to HK$580, while keeping its rating at Outperform.
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