The Zhitong Finance App learned that Yamato released a research report stating that it reaffirmed the “buy” rating of the Hong Kong Stock Exchange (00388), lowered its adjusted revenue forecast by about 1% to 1% respectively, and lowered its net profit forecast by 8% to 13% based on increased expenses. The target price was lowered from HK$400 to HK$330, and that preparations should be made for a market rebound. The company's operating expenses increased 12% year-on-year in the fourth quarter of last year, mainly due to increased employee costs, IT expenses, and the resumption of business after the pandemic. Furthermore, the company's management emphasized the growth of the London Metal Exchange (LME) business (particularly the rapid rebound in the nickel business) and infrastructure improvements. The company's liquidity has also increased.
The report mentioned that the Hong Kong Stock Exchange has simplified the secondary listing supervision process for overseas companies, and acknowledged that the current market environment is full of challenges. It is hoped that when the environment improves, it will be able to better welcome foreign issuers. The Hong Kong Stock Exchange is investing heavily in overseas markets interested in listing in Hong Kong, particularly in the Middle East and ASEAN markets.