Nomura raised the Hong Kong Stock Exchange's (00388) profit forecast for the 2024 and 2025 fiscal years by 2%, respectively.
The Zhitong Finance App learned that Nomura released a research report saying that maintaining the “buy” rating on the Hong Kong Stock Exchange (00388), the target price was raised 2% from HK$324.31 to HK$330.58, mainly based on the dividend discount model (Dividend Discount Model). The discount rate was 9%, and the terminal growth rate was 6% (all indicators unchanged).
Nomura believes that Hong Kong Stock Connect's potential dividend tax relief is a benefit. In addition, the profit forecast for the Hong Kong Stock Exchange for the 2024 and 2025 fiscal years was raised by 2%, and the average daily transaction volume (ADT) forecast was raised by 4% and 3%, respectively. Net profit is expected to increase by 4% and 6% in the 2024 and 2025 fiscal years, mainly benefiting from ADT growth. Currently, 2024 and 2025 are expected to increase by 5% and 11% year-on-year, respectively.