Hong Kong Exchanges and Clearing
Hong Kong Exchanges and Clearing Limited, through its subsidiaries, owns and operates stock exchanges and futures exchanges, and related clearing houses in Hong Kong. The last earnings update was 102 days ago. More info.
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388 Share Price and Events
7 Day Returns
1 Year Returns
388 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Hong Kong Exchanges and Clearing (388) | 4.2% | 4.8% | 10.1% | -10.4% | 46.6% | 105.7% |
| HK Capital Markets | 2% | 7.5% | 5.9% | -26.7% | -5.9% | 12.2% |
| HK Market | -0.1% | 4.9% | 4.9% | -12.6% | 32.1% | 13% |
1 Year Return vs Industry and Market
- 388 outperformed the Capital Markets industry which returned -26.7% over the past year.
- 388 outperformed the Market in Hong Kong which returned -12.6% over the past year.
388 Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Hong Kong Exchanges and Clearing
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Hong Kong Exchanges and Clearing.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 12 analysts.
= Stable Book Value * Return on Equity = HK$33.15 * 27.1% |
HK$8.98 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 10 analysts. | HK$33.15 |
| Discount Rate (Cost of Equity) | See below | 9.9% |
| Perpetual Growth Rate | 10-Year HK Government Bond Rate | 2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year HK Govt Bond Rate | 2% |
| Equity Risk Premium | S&P Global | 8% |
| Capital Markets Unlevered Beta | Simply Wall St/ S&P Global | 0.99 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.987 (1 + (1- 25%) (0.6%)) |
0.992 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.99 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.992 * 8%) |
9.93% |
Discounted Cash Flow Calculation for SEHK:388 using Excess Returns Model Model
The calculations below outline how an intrinsic value for Hong Kong Exchanges and Clearing is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (27.1% – 9.93%) * HK$33.15) |
HK$5.69 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= HK$5.69 / (9.93% - 2%) |
HK$71.72 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= HK$33.15 + HK$71.72 |
HK$104.87 |
| Calculation | Result | |
|---|---|---|
| Value per share (HKD) | From above. | HK$104.87 |
| Current discount | Discount to share price of
HK$251.00
= -1 x (HK$251.00 - HK$104.87) / HK$104.87 |
-139.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Hong Kong Exchanges and Clearing is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Hong Kong Exchanges and Clearing's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Hong Kong Exchanges and Clearing's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in HKD | HK$7.55 |
| SEHK:388 Share Price ** | SEHK (2019-02-15) in HKD | HK$251 |
| Hong Kong Capital Markets Industry PE Ratio | Median Figure of 50 Publicly-Listed Capital Markets Companies | 13.21x |
| Hong Kong Market PE Ratio | Median Figure of 1,481 Publicly-Listed Companies | 10.52x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Hong Kong Exchanges and Clearing.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SEHK:388 Share Price ÷ EPS (both in HKD) = 251 ÷ 7.55 |
33.23x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Hong Kong Exchanges and Clearing is overvalued based on earnings compared to the HK Capital Markets industry average.
- Hong Kong Exchanges and Clearing is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does
Hong Kong Exchanges and Clearing's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 33.23x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts |
11.9%per year |
| Hong Kong Capital Markets Industry PEG Ratio | Median Figure of 8 Publicly-Listed Capital Markets Companies | 0.49x |
| Hong Kong Market PEG Ratio | Median Figure of 465 Publicly-Listed Companies | 0.76x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 33.23x ÷ 11.9% |
2.8x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Hong Kong Exchanges and Clearing is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Hong Kong Exchanges and Clearing's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in HKD | HK$31.61 |
| SEHK:388 Share Price * | SEHK (2019-02-15) in HKD | HK$251 |
| Hong Kong Capital Markets Industry PB Ratio | Median Figure of 72 Publicly-Listed Capital Markets Companies | 0.67x |
| Hong Kong Market PB Ratio | Median Figure of 2,118 Publicly-Listed Companies | 0.96x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SEHK:388 Share Price ÷ Book Value per Share (both in HKD) = 251 ÷ 31.61 |
7.94x |
* Primary Listing of Hong Kong Exchanges and Clearing.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Hong Kong Exchanges and Clearing is overvalued based on assets compared to the HK Capital Markets industry average.
Value checks
We assess Hong Kong Exchanges and Clearing's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check) Hong Kong Exchanges and Clearing has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
388 Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Hong Kong Exchanges and Clearing's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
- Hong Kong Exchanges and Clearing's earnings growth is expected to exceed the Hong Kong market average.
- Hong Kong Exchanges and Clearing's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SEHK:388 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts | 11.9% |
| SEHK:388 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts | 7.7% |
| Hong Kong Capital Markets Industry Earnings Growth Rate | Market Cap Weighted Average | 17% |
| Hong Kong Capital Markets Industry Revenue Growth Rate | Market Cap Weighted Average | 11.4% |
| Hong Kong Market Earnings Growth Rate | Market Cap Weighted Average | 11.8% |
| Hong Kong Market Revenue Growth Rate | Market Cap Weighted Average | 10.2% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 14 Analyst Estimates (S&P Global) | See Below |
| Date (Data in HKD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 18,498 | 12,962 | 11,864 | 8 |
| 2019-12-31 | 16,939 | 11,094 | 10,173 | 12 |
| 2018-12-31 | 15,844 | 8,615 | 9,324 | 12 |
| Date (Data in HKD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-09-30 | 15,716 | 9,362 | |
| 2018-06-30 | 15,057 | 9,254 | 8,952 |
| 2018-03-31 | 14,179 | 8,250 | |
| 2017-12-31 | 13,077 | 7,413 | 7,404 |
| 2017-09-30 | 12,247 | 6,767 | |
| 2017-06-30 | 11,657 | 5,396 | 6,277 |
| 2017-03-31 | 11,365 | 6,053 | |
| 2016-12-31 | 11,068 | 3,463 | 5,769 |
| 2016-09-30 | 11,185 | 6,059 | |
| 2016-06-30 | 11,625 | 4,305 | 6,846 |
| 2016-03-31 | 12,817 | 7,813 | |
| 2015-12-31 | 12,862 | 8,321 | 7,956 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 14 Analyst Estimates (S&P Global) | See Below |
All data from Hong Kong Exchanges and Clearing Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in HKD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 9.37 | 13.79 | 7.87 | 8.00 |
| 2019-12-31 | 8.19 | 10.12 | 7.37 | 12.00 |
| 2018-12-31 | 7.53 | 7.78 | 7.32 | 11.00 |
| Date (Data in HKD Millions) | EPS * |
|---|---|
| 2018-09-30 | 7.55 |
| 2018-06-30 | 7.25 |
| 2018-03-31 | 6.69 |
| 2017-12-31 | 6.03 |
| 2017-09-30 | 5.53 |
| 2017-06-30 | 5.14 |
| 2017-03-31 | 4.98 |
| 2016-12-31 | 4.76 |
| 2016-09-30 | 5.01 |
| 2016-06-30 | 5.69 |
| 2016-03-31 | 6.53 |
| 2015-12-31 | 6.70 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Hong Kong Exchanges and Clearing is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Future performance checks
We assess Hong Kong Exchanges and Clearing's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Hong Kong Exchanges and Clearing has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
388 Past Performance
How has Hong Kong Exchanges and Clearing performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Hong Kong Exchanges and Clearing's year on year earnings growth rate has been positive over the past 5 years.
- Hong Kong Exchanges and Clearing's 1-year earnings growth exceeds its 5-year average (38.3% vs 12.1%)
- Hong Kong Exchanges and Clearing's earnings growth has exceeded the HK Capital Markets industry average in the past year (38.3% vs -9.8%).
Earnings and Revenue History
All data from Hong Kong Exchanges and Clearing Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in HKD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-09-30 | 15,716.00 | 9,362.00 | 3,073.00 | |
| 2018-06-30 | 15,057.00 | 8,952.00 | 2,937.00 | |
| 2018-03-31 | 14,179.00 | 8,250.00 | 2,874.00 | |
| 2017-12-31 | 13,077.00 | 7,404.00 | 2,776.00 | |
| 2017-09-30 | 12,247.00 | 6,767.00 | 2,656.00 | |
| 2017-06-30 | 11,657.00 | 6,277.00 | 2,593.00 | |
| 2017-03-31 | 11,365.00 | 6,053.00 | 2,523.00 | |
| 2016-12-31 | 11,068.00 | 5,769.00 | 2,528.00 | |
| 2016-09-30 | 11,185.00 | 6,059.00 | 2,430.00 | |
| 2016-06-30 | 11,625.00 | 6,846.00 | 2,471.00 | |
| 2016-03-31 | 12,817.00 | 7,813.00 | 2,504.00 | |
| 2015-12-31 | 12,862.00 | 7,956.00 | 2,454.00 | |
| 2015-09-30 | 12,891.00 | 7,936.00 | 2,410.00 | |
| 2015-06-30 | 12,064.00 | 6,893.00 | 2,373.00 | |
| 2015-03-31 | 10,289.00 | 5,562.00 | 2,241.00 | |
| 2014-12-31 | 9,828.00 | 5,165.00 | 2,195.00 | |
| 2014-09-30 | 9,213.00 | 4,678.00 | 2,120.00 | |
| 2014-06-30 | 8,876.00 | 4,591.00 | 2,038.00 | |
| 2014-03-31 | 8,818.00 | 4,572.00 | 2,005.00 | |
| 2013-12-31 | 8,704.00 | 4,552.00 | 1,957.00 | |
| 2013-09-30 | 8,320.00 | 4,392.00 | 1,844.00 | |
| 2013-06-30 | 7,873.00 | 4,196.00 | 1,725.00 | |
| 2013-03-31 | 7,545.00 | 4,094.00 | 1,626.00 | |
| 2012-12-31 | 7,198.00 | 4,084.00 | 1,505.00 | |
| 2012-09-30 | 7,282.00 | 4,492.00 | 1,423.00 | |
| 2012-06-30 | 7,540.00 | 4,725.00 | 1,397.00 | |
| 2012-03-31 | 7,714.00 | 5,003.00 | 1,355.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Hong Kong Exchanges and Clearing has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Hong Kong Exchanges and Clearing used its assets more efficiently than the HK Capital Markets industry average last year based on Return on Assets.
- Hong Kong Exchanges and Clearing's use of capital has not improved over the past 3 years (Return on Capital Employed).
Past performance checks
We assess Hong Kong Exchanges and Clearing's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Hong Kong Exchanges and Clearing has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
388 Health
How is Hong Kong Exchanges and Clearing's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Hong Kong Exchanges and Clearing's finances.
The net worth of a company is the difference between its assets and liabilities.
- Hong Kong Exchanges and Clearing is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Hong Kong Exchanges and Clearing's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 126.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Hong Kong Exchanges and Clearing Company Filings, last reported 4 months ago.
| Date (Data in HKD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-09-30 | 39,484.00 | 1,870.00 | 223,097.00 |
| 2018-06-30 | 40,734.00 | 1,872.00 | 25,787.00 |
| 2018-03-31 | 39,996.00 | 1,869.00 | 264,384.00 |
| 2017-12-31 | 37,375.00 | 1,860.00 | 21,404.00 |
| 2017-09-30 | 35,643.00 | 1,856.00 | 249,044.00 |
| 2017-06-30 | 34,988.00 | 3,450.00 | 20,415.00 |
| 2017-03-31 | 34,177.00 | 3,433.00 | 213,778.00 |
| 2016-12-31 | 32,384.00 | 3,422.00 | 17,582.00 |
| 2016-09-30 | 31,284.00 | 3,420.00 | 188,530.00 |
| 2016-06-30 | 31,120.00 | 3,418.00 | 16,918.00 |
| 2016-03-31 | 31,456.00 | 3,415.00 | 194,607.00 |
| 2015-12-31 | 29,962.00 | 3,409.00 | 15,573.00 |
| 2015-09-30 | 28,604.00 | 3,406.00 | 252,687.00 |
| 2015-06-30 | 28,031.00 | 3,329.00 | 13,780.00 |
| 2015-03-31 | 22,973.00 | 7,056.00 | 229,849.00 |
| 2014-12-31 | 21,359.00 | 7,026.00 | 10,193.00 |
| 2014-09-30 | 20,734.00 | 8,365.00 | 210,369.00 |
| 2014-06-30 | 22,278.00 | 6,976.00 | 10,086.00 |
| 2014-03-31 | 21,853.00 | 6,961.00 | 53,855.00 |
| 2013-12-31 | 20,518.00 | 6,921.00 | 9,941.00 |
| 2013-09-30 | 19,019.00 | 6,692.00 | 9,181.00 |
| 2013-06-30 | 17,834.00 | 6,665.00 | 8,698.00 |
| 2013-03-31 | 17,809.00 | 6,653.00 | 9,239.00 |
| 2012-12-31 | 17,764.00 | 6,615.00 | 7,563.00 |
| 2012-09-30 | 8,693.00 | 0.00 | 9,000.00 |
| 2012-06-30 | 9,282.00 | 0.00 | 9,420.00 |
| 2012-03-31 | 10,335.00 | 0.00 | 10,580.00 |
- Hong Kong Exchanges and Clearing's level of debt (4.7%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (35.2% vs 4.7% today).
- Debt is well covered by operating cash flow (494.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 126.7x coverage).
Financial health checks
We assess Hong Kong Exchanges and Clearing's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Hong Kong Exchanges and Clearing has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
388 Dividends
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
HK$2,000 of
Hong Kong Exchanges and Clearing
shares you are expected to receive
HK$58
in your first year as a dividend.
Dividend Amount
- Hong Kong Exchanges and Clearing's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.01%).
- Hong Kong Exchanges and Clearing's dividend is below the markets top 25% of dividend payers in Hong Kong (5.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 14 Analyst Estimates (S&P Global) | See Below |
| Hong Kong Capital Markets Industry Average Dividend Yield | Market Cap Weighted Average of 32 Stocks | 4.2% |
| Hong Kong Market Average Dividend Yield | Market Cap Weighted Average of 916 Stocks | 3.6% |
| Hong Kong Minimum Threshold Dividend Yield | 10th Percentile | 1.2% |
| Hong Kong Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Hong Kong Top 25% Dividend Yield | 75th Percentile | 5.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in HK$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-12-31 | 8.36 | 10.00 |
| 2019-12-31 | 7.33 | 14.00 |
| 2018-12-31 | 6.76 | 13.00 |
| Date (Data in HK$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-11-07 | 7.280 | 3.123 |
| 2018-08-20 | 7.280 | 3.362 |
| 2018-08-08 | 7.280 | 3.234 |
| 2018-04-25 | 5.400 | 2.202 |
| 2017-08-09 | 4.590 | 1.896 |
| 2017-03-20 | 4.080 | 2.023 |
| 2017-02-27 | 4.080 | 2.110 |
| 2016-03-21 | 5.950 | 3.091 |
| 2016-03-02 | 5.950 | 3.410 |
| 2015-11-11 | 6.160 | 3.316 |
| 2015-08-24 | 6.160 | 3.211 |
| 2015-08-12 | 6.160 | 3.095 |
| 2015-04-15 | 3.980 | 1.528 |
| 2015-03-23 | 3.980 | 1.899 |
| 2015-03-05 | 3.980 | 2.258 |
| 2014-08-25 | 3.550 | 2.024 |
| 2014-04-29 | 3.540 | 2.311 |
| 2013-09-04 | 3.280 | 2.586 |
| 2013-02-27 | 2.920 | 2.307 |
| 2012-11-19 | 3.700 | 2.696 |
| 2012-11-07 | 3.700 | 2.950 |
| 2012-08-20 | 3.700 | 3.207 |
| 2012-08-08 | 3.700 | 3.433 |
| 2012-03-12 | 4.250 | 3.689 |
| 2012-02-29 | 4.250 | 3.049 |
| 2011-03-02 | 4.200 | 2.916 |
| 2010-03-04 | 3.930 | 2.711 |
| 2009-12-31 | 3.930 | 2.887 |
| 2009-08-12 | 3.640 | 2.585 |
| 2009-03-16 | 4.290 | 4.086 |
| 2009-03-04 | 4.290 | 7.299 |
| 2009-02-18 | 6.800 | 10.948 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Hong Kong Exchanges and Clearing's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.2x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
Income/ dividend checks
We assess Hong Kong Exchanges and Clearing's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Hong Kong Exchanges and Clearing afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Hong Kong Exchanges and Clearing has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
388 Management
CEO
| COMPENSATION | HK$48,855,350 |
| AGE | 57 |
| TENURE AS CEO | 9.1 years |
CEO Bio
Mr. Xiaojia Li, also known as Charles, has been the Chief Executive Officer and Executive Director of Hong Kong Exchanges & Clearing Limited since January 16, 2010. Before joining JP Morgan in 2003, Mr. Li served as President at Merrill Lynch China from 1999 to 2003 and its Managing Director, where he had worked for more than 8 years. He served at Merrill Lynch from 1994 to 2003. He was an Associate at Davis Polk & Wardwell, New York from 1991 to 1993 and Brown & Wood, New York from 1993 to 1994. Mr. Li served as the Chairman of JP Morgan China from 2003 to 2009 and was responsible for all of JP Morgan's businesses in China. Mr. Li serves as an Executive Director of Hong Kong Exchanges & Clearing Ltd. He serves as a Director of LME Holdings Limited. He has been a Director of The London Metal Exchange Limited since December 6, 2012. He holds a Bachelor of Arts degree in English Literature from Xiamen University in China, a Master of Arts degree in Journalism from the University of Alabama and a Juris Doctor from Columbia University in the US.
CEO Compensation
- Charles's compensation has been consistent with company performance over the past year.
- Charles's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the Hong Kong Exchanges and Clearing management team in years:
- The tenure for the Hong Kong Exchanges and Clearing management team is about average.
Management Team
Charles Li
CEO & Executive Director
HK$49M
57
9.1 yrs
John Killian
Group Chief Financial Officer
HK$7M
50
1.2 yrs
Calvin Tai
COO, Head of Clearing & Interim Head of Market
HK$13M
56
0.1 yrs
Ferheen Mahomed
Group General Counsel
HK$18M
52
2 yrs
Eva Chau
Group Head of Human Resources
HK$8M
55
2.5 yrs
Romnesh Lamba
Co-Head of Market Development
HK$16M
54
9 yrs
Richard Leung
Deputy Group Chief Information Officer & CTO - Hong Kong
HK$10M
54
7.4 yrs
David Graham
Chief Regulatory Officer & Head of Listing
HK$15M
59
6.1 yrs
Zhirong Mao
Head of Mainland Development
HK$9M
54
5.8 yrs
Li Gang
Co-Head of Market Development
HK$13M
52
3.1 yrs
Board of Directors Tenure
Average tenure and age of the Hong Kong Exchanges and Clearing board of directors in years:
- The tenure for the Hong Kong Exchanges and Clearing board of directors is about average.
Board of Directors
Laura Cha
Chairman of the Board
HK$116K
68
0.8 yrs
Charles Li
CEO & Executive Director
HK$49M
57
9.1 yrs
Rafael Gil-Tienda
Independent Non-Executive Director
65
3.8 yrs
Cheng Hye Cheah
Independent Non-Executive Director
64
1.8 yrs
Stephen Yiu
Independent Non-Executive Director
57
1.8 yrs
John Mackay Williamson
Independent Non-Executive Director
59
10.7 yrs
Benjamin Hung
Independent Non-Executive Director
53
1 yrs
Ignatius Chan
Independent Non-Executive Director
61
9.8 yrs
Margaret Leung
Independent Non Executive Director
66
5.8 yrs
Fred Hu
Independent Non-Executive Director
55
4.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (HK$) | Value (HK$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 13. Nov 18 | Buy | J.P. Morgan Asset Management, Inc. | Company | 08. Nov 18 | 08. Nov 18 | 405,644 | HK$227.69 | HK$92,362,504 | ||
| 09. Nov 18 | Sell | J.P. Morgan Asset Management, Inc. | Company | 06. Nov 18 | 06. Nov 18 | -1,268,007 | HK$221.06 | HK$-280,300,301 | ||
| 07. Nov 18 | Buy | J.P. Morgan Asset Management, Inc. | Company | 02. Nov 18 | 02. Nov 18 | 1,817,781 | HK$225.78 | HK$410,410,049 | ||
| 08. May 18 | Sell | JPMorgan Chase & Co, Brokerage and Securities Investments | Company | 03. May 18 | 03. May 18 | -15,734,948 | HK$256.29 | HK$-4,032,694,133 | ||
Management checks
We assess Hong Kong Exchanges and Clearing's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Hong Kong Exchanges and Clearing has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
388 News
Simply Wall St News
Is There Now An Opportunity In Hong Kong Exchanges and Clearing Limited (HKG:388)?
Let's talk about the popular Hong Kong Exchanges and Clearing Limited (HKG:388). … saw a decent share price growth in the teens level on the SEHK over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price
Simply Wall St - – Full articleOur Take On Hong Kong Exchanges and Clearing Limited's (HKG:388) CEO Salary
In 2010 Charles Li was appointed CEO of Hong Kong Exchanges and Clearing Limited (HKG:388). … First, this article will compare CEO compensation with compensation at other large companies. … View our latest analysis for Hong Kong Exchanges and Clearing?
Simply Wall St - – Full articleWhat To Know Before Buying Hong Kong Exchanges and Clearing Limited (HKG:388) For Its Dividend
Historically, Hong Kong Exchanges and Clearing Limited (HKG:388) has paid a dividend to shareholders. … Let's take a look at Hong Kong Exchanges and Clearing in more detail. … View our latest analysis for Hong Kong Exchanges and Clearing
Simply Wall St - – Full articleWhy Investors Should Run Towards Hong Kong Exchanges and Clearing Limited (HKG:388)
High quality companies, such as Hong Kong Exchanges and Clearing Limited, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Check out our latest analysis for Hong Kong Exchanges and Clearing. … Hong Kong Exchanges and Clearing Limited, through its subsidiaries, owns and operates stock exchanges and futures exchanges, and related clearing houses in Hong Kong.
Simply Wall St - – Full articleHas Hong Kong Exchanges and Clearing Limited (HKG:388) Improved Earnings Growth In Recent Times?
Understanding how Hong Kong Exchanges and Clearing Limited (HKG:388) is performing as a company requires looking at more than just a years' earnings. … Today I will run you through a basic sense check to gain perspective on how Hong Kong Exchanges and Clearing is doing by comparing its latest earnings with its long-term trend as well as the performance of its capital markets industry peers. … Check out our latest analysis for Hong Kong Exchanges and Clearing?
Simply Wall St - – Full articleDo Directors Own Hong Kong Exchanges and Clearing Limited (HKG:388) Shares?
If you want to know who really controls Hong Kong Exchanges and Clearing Limited (HKG:388), then you'll have to look at the makeup of its share registry. … With a market capitalization of HK$281b, Hong Kong Exchanges and Clearing is rather large. … View our latest analysis for Hong Kong Exchanges and Clearing
Simply Wall St - – Full articleIs Hong Kong Exchanges and Clearing Limited (HKG:388) Potentially Undervalued?
Hong Kong Exchanges and Clearing Limited (HKG:388). … A question to answer is whether Hong Kong Exchanges and Clearing's current trading price of HK$208 reflective of the actual value of the? … Let’s take a look at Hong Kong Exchanges and Clearing’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleDoes Hong Kong Exchanges and Clearing Limited's (HKG:388) CEO Pay Matter?
In 2010 Charles Li was appointed CEO of Hong Kong Exchanges and Clearing Limited (HKG:388). … See our latest analysis for Hong Kong Exchanges and Clearing? … At the time of writing our data says that Hong Kong Exchanges and Clearing Limited has a market cap of HK$253.0b, and is paying total annual CEO compensation of HK$49m.
Simply Wall St - – Full articleHong Kong Exchanges and Clearing Limited (HKG:388): Ex-Dividend Is In 2 Days, Should You Buy?
Important news for shareholders and potential investors in Hong Kong Exchanges and Clearing Limited (HKG:388): The dividend payment of HK$3.64 per share will be distributed into shareholder on 20 September 2018, and the stock will begin trading ex-dividend at an earlier date, 21 August 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Hong Kong Exchanges and Clearing's latest financial data to analyse its dividend attributes. … View our latest analysis for Hong Kong Exchanges and Clearing?
Simply Wall St - – Full articleWhy Hong Kong Exchanges and Clearing Limited (HKG:388) Is An Attractive Investment
In the case of Hong Kong Exchanges and Clearing Limited (HKG:388), there's. … Below is a brief commentary on these key aspects … If you're interested in understanding beyond my high-level commentary,
Simply Wall St - – Full article388 Company Info
Map
Description
Hong Kong Exchanges and Clearing Limited, through its subsidiaries, owns and operates stock exchanges and futures exchanges, and related clearing houses in Hong Kong. It operates in five segments: Cash, Equity and Financial Derivatives, Commodities, Clearing, and Platform and Infrastructure. The Cash segment covers various equity products traded on the cash market platforms, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange; sale of market data relating to the products; and other related activities. The Equity and Financial Derivatives segment provides and maintains trading platforms for a range of equity and financial derivative products, such as stock and equity index futures and options, derivative warrants, and callable bull/bear contracts and warrants, as well as other related activities. The Commodities segment operates an exchange for the trading of base metals futures and options contracts in the United Kingdom; and develops and operates commodity trading platform in the Mainland. This segment also comprises the Asia Commodities contracts traded on Hong Kong Futures Exchange Limited. The Clearing segment operates clearing houses that are responsible for clearing, settlement, and custodian activities of the company’s exchanges; and clearing and settlement of over-the-counter derivatives contracts. The Platform and Infrastructure segment offers various services that provide users with access to the platform and infrastructure. Hong Kong Exchanges and Clearing Limited is based in Central, Hong Kong.
Details
| Name: | Hong Kong Exchanges and Clearing Limited |
| 388 | |
| Exchange: | SEHK |
| Founded: | |
| HK$313,174,567,691 | |
| 1,247,707,441 | |
| Website: | http://www.hkex.com.hk |
| Address: |
Hong Kong Exchanges and Clearing Limited Two Exchange Square, 8th Floor, Central, Hong Kong |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SEHK | 388 | Ordinary Shares | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 28. Jun 2000 | |
| OTCPK | HKXC.F | Ordinary Shares | Pink Sheets LLC | US | USD | 28. Jun 2000 | |
| DB | HK2C | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 28. Jun 2000 | |
| SHSC | 388 | Ordinary Shares | Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect | HK | HKD | 28. Jun 2000 | |
| SZSC | 388 | Ordinary Shares | The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect | HK | HKD | 28. Jun 2000 | |
| OTCPK | HKXC.Y | UNSPONSORED ADR | Pink Sheets LLC | US | USD | 23. Oct 2008 |
Number of employees
Current staff
Industry
| Financial Exchanges and Data | |
| Diversified Financials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/17 12:37 |
| End of day share price update: | 2019/02/15 00:00 |
| Last estimates confirmation: | 2019/02/13 |
| Last earnings filing: | 2018/11/07 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2017/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
