Jinwu Financial News | According to CaiTong Securities Research Report, the 2024Q1 Hong Kong Stock Exchange (00388) revenue and other revenue was HK$5.201 billion, +7.1%/-6.4% month-on-month; of these, the company's main business revenue was +2.6% month-over-month/-4.2% month-on-month to HK$3,847 billion, and margin and own capital investment income was +25.2%/-12.6% month-on-month to HK$1,342 billion. Net profit attributable to mother was HK$2,970 million, +14.4%/-12.9% month/year over year. The company's spot market trading activity is still weak but has stabilized marginally. The derivatives and commodity market performance is strong, but the number of new listings for the company and derivatives is still under pressure. Furthermore, the company maintains high interest rates overseas and the company's own capital has performed excellently, driving investment returns to maintain a high level.
The bank added that on April 19, the Securities Regulatory Commission announced 5 capital market cooperation measures with Hong Kong, including: 1) easing the scope of eligible products for stock ETFs under the Shanghai-Shenzhen-Hong Kong Stock Connect; 2) incorporating REITs into the Shanghai-Shenzhen-Hong Kong Stock Connect; 3) supporting the integration of RMB stock trading counters into Hong Kong Stock Connect; 4) optimizing mutual fund recognition arrangements; and 5) supporting leading enterprises in the mainland industry to go public in Hong Kong. Further deepening connectivity is expected to enhance the company's long-term competitiveness. The bank expects net profit from the Hong Kong Stock Exchange to be HK$124.2/132.5/14.27 billion in 2024/2025/2026, respectively, up 4.7%/+6.7%/+7.7% year-on-year, respectively. The current stock price corresponds to 24.4 x PE in 2024. Maintain a “buy” rating.