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388: Cross-Border Cooperation Will Drive Stronger Long-Term Earnings Power

Asia's Economic Rise Will Fuel Global Market Opportunities

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388
AnalystConsensusTarget
Not Invested
Published 09 Feb 2025

Update shared on 11 Dec 2025

Fair value Increased 0.35%
Previous
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AnalystConsensusTarget's Fair Value
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1Y
31.7%
7D
-1.3%

Analysts have nudged their price target on Hong Kong Exchanges and Clearing slightly higher to HK$504.75 from HK$503.00. This reflects modestly stronger expectations for revenue growth despite only incremental changes to discount rate, profit margin, and future valuation assumptions.

What's in the News

  • PricewaterhouseCoopers will retire as auditor at the conclusion of the 2026 AGM, despite being reappointed at the 2025 AGM. The board expressed appreciation for PwC's long-term service (company announcement).
  • A board meeting is scheduled for November 5, 2025, to approve the announcement of unaudited consolidated results for the nine months ending September 30, 2025 (company filing).
  • Hong Kong Exchanges and Clearing signed a new Memorandum of Understanding with Abu Dhabi Securities Exchange to deepen cooperation, pursue dual listings and cross-border financing, and co-develop products including ETFs and ESG-related indices (company announcement).

Valuation Changes

  • The consensus analyst price target has risen slightly to HK$504.75 from HK$503.00, indicating a marginally higher fair value estimate.
  • The discount rate has increased modestly to 8.20 percent from 8.11 percent, implying a slightly higher required return in the valuation model.
  • Revenue growth has risen slightly to 4.11 percent from 3.72 percent, reflecting somewhat stronger expectations for top-line expansion.
  • The net profit margin has edged down slightly to 67.71 percent from 68.24 percent, suggesting a minor compression in expected profitability.
  • The future P/E has ticked up marginally to 37.66x from 37.57x, signaling a small increase in the implied valuation multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.