Update shared on 05 Nov 2025
Fair value Increased 1.05%Analysts have raised their price target for Hong Kong Exchanges and Clearing to HK$499.27 from HK$494.07. They cite sustained record trading volumes and an improved revenue growth outlook as the reasons for this adjustment.
Analyst Commentary
Recent analyst updates highlight both optimistic and cautious perspectives on Hong Kong Exchanges and Clearing, following advancements in trading activity and upward EPS revisions.
Bullish Takeaways- Bullish analysts point to consistently elevated trading volumes as a sign of robust underlying demand and market participation.
- The upward revision of FY25 to FY27 earnings per share estimates by up to 16 percent is viewed as a positive signal for earnings growth momentum.
- Valuation is seen as increasingly attractive, given the improved revenue outlook and resilience in core operations.
- Sustained all-time-high trading activity is expected to drive stronger performance over upcoming fiscal years.
- Bears caution that the company’s growth may be sensitive to fluctuations in market sentiment and trading behavior, potentially impacting revenue sustainability.
- There are concerns that current trading volume levels could normalize, placing pressure on year-over-year growth comparisons.
- Some analysts note that, despite the upgrades, competitive pressures within regional exchanges remain an ongoing execution risk.
What's in the News
- Hong Kong Exchanges and Clearing (HKEX) has signed a renewed Memorandum of Understanding with Abu Dhabi Securities Exchange, further strengthening their strategic partnership. The agreement focuses on market connectivity, joint events, dual listings, and ESG-related products. (Key Developments)
- PricewaterhouseCoopers will retire as Auditor following the 2026 AGM, concluding years of service. HKEX has expressed appreciation for their contribution. (Key Developments)
- An interim dividend of HKD 6 per share has been declared for the year ending December 2025. The ex-dividend date is 02 September and payment will be made on 16 September 2025. (Key Developments)
- A board meeting is scheduled for 05 November 2025 to approve the unaudited consolidated results for the nine months ending 30 September 2025. (Key Developments)
Valuation Changes
- The consensus analyst price target has risen slightly, from HK$494.07 to HK$499.27.
- The discount rate has fallen modestly, decreasing from 8.18 percent to 8.08 percent.
- The revenue growth forecast has increased, moving from 6.04 percent to 6.96 percent.
- The net profit margin is projected to decline marginally, from 63.31 percent to 62.25 percent.
- The future P/E ratio estimate is largely unchanged, adjusting marginally from 40.99x to 40.93x.
Disclaimer
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