Lyon predicts that the earnings per share of the Hong Kong Stock Exchange for each year from 2023 to 2025 will increase by 20%, decrease by 1%, and increase by 4%, respectively.
The Zhitong Finance App learned that Lyon released a research report saying that due to worsening market sentiment, the target price of the Hong Kong Stock Exchange (00388) was lowered from HK$369 to HK$297, but it reiterated the “buy” rating because the stock was defensive in profit, improved return on investment, and low valuation demand.
The company will announce its annual results on February 29. Net profit after tax for the previous quarter is expected to drop 5% year-on-year due to the market downturn. The bank predicts that the earnings per share of the Hong Kong Stock Exchange for each year from 2023 to 2025 will increase by 20%, decrease by 1% and increase by 4%, respectively. Additionally, management is expected to respond to investors' concerns about sluggish trading, market disdain for Chinese assets, and the Hong Kong Stock Exchange valuation premium.