Hong Kong Exchanges and Clearing
Market Cap
HK$302.4b
Last Updated
2020/04/07 12:43 UTC
Data Sources
Company Financials +
Executive Summary
Hong Kong Exchanges and Clearing Limited, together with its subsidiaries, owns and operates stock exchanges and futures exchanges, and related clearing houses in Hong Kong.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record.
Similar Companies
Share Price & News
How has Hong Kong Exchanges and Clearing's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 388 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.3%
388
1.3%
HK Capital Markets
3.0%
HK Market
1 Year Return
-13.7%
388
-27.0%
HK Capital Markets
-21.1%
HK Market
Return vs Industry: 388 exceeded the Hong Kong Capital Markets industry which returned -27% over the past year.
Return vs Market: 388 exceeded the Hong Kong Market which returned -21.1% over the past year.
Shareholder returns
| 388 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.3% | 1.3% | 3.0% |
| 30 Day | -4.5% | -14.2% | -9.1% |
| 90 Day | -9.1% | -16.1% | -14.7% |
| 1 Year | -11.3%-13.7% | -24.8%-27.0% | -18.2%-21.1% |
| 3 Year | 37.5%25.8% | -24.8%-32.0% | -2.0%-11.8% |
| 5 Year | -1.8%-14.6% | -50.8%-59.4% | -16.4%-29.8% |
Price Volatility Vs. Market
How volatile is Hong Kong Exchanges and Clearing's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Despite Its High P/E Ratio, Is Hong Kong Exchanges and Clearing Limited (HKG:388) Still Undervalued?1 month ago | Simply Wall St
Hong Kong Exchanges and Clearing Limited (HKG:388) Passed Our Checks, And It's About To Pay A HK$2.99 DividendValuation
Is Hong Kong Exchanges and Clearing undervalued compared to its fair value and its price relative to the market?
32.55x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 388 (HK$243.8) is trading above our estimate of fair value (HK$177.43)
Significantly Below Fair Value: 388 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 388 is poor value based on its PE Ratio (32.5x) compared to the Capital Markets industry average (10.9x).
PE vs Market: 388 is poor value based on its PE Ratio (32.5x) compared to the Hong Kong market (9.2x).
Price to Earnings Growth Ratio
PEG Ratio: 388 is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: 388 is overvalued based on its PB Ratio (6.9x) compared to the HK Capital Markets industry average (0.5x).
Next Steps
Future Growth
How is Hong Kong Exchanges and Clearing forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
10.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 388's forecast earnings growth (10.8% per year) is above the savings rate (1.6%).
Earnings vs Market: 388's earnings (10.8% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).
High Growth Earnings: 388's earnings are forecast to grow, but not significantly.
Revenue vs Market: 388's revenue (9% per year) is forecast to grow slower than the Hong Kong market (9.8% per year).
High Growth Revenue: 388's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 388's Return on Equity is forecast to be high in 3 years time (25.8%)
Next Steps
Past Performance
How has Hong Kong Exchanges and Clearing performed over the past 5 years?
9.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 388 has high quality earnings.
Growing Profit Margin: 388's current net profit margins (57.7%) are lower than last year (58.9%).
Past Earnings Growth Analysis
Earnings Trend: 388's earnings have grown by 9.6% per year over the past 5 years.
Accelerating Growth: 388's earnings growth over the past year (0.8%) is below its 5-year average (9.6% per year).
Earnings vs Industry: 388 earnings growth over the past year (0.8%) exceeded the Capital Markets industry -11.5%.
Return on Equity
High ROE: 388's Return on Equity (21.1%) is considered high.
Next Steps
Financial Health
How is Hong Kong Exchanges and Clearing's financial position?
Financial Position Analysis
Short Term Liabilities: 388's short term assets (HK$255.9B) exceed its short term liabilities (HK$230.9B).
Long Term Liabilities: 388's short term assets (HK$255.9B) exceed its long term liabilities (HK$3.6B).
Debt to Equity History and Analysis
Debt Level: 388's debt to equity ratio (0.9%) is considered satisfactory.
Reducing Debt: 388's debt to equity ratio has reduced from 32.9% to 0.9% over the past 5 years.
Debt Coverage: 388's debt is well covered by operating cash flow (2407.2%).
Interest Coverage: 388's interest payments on its debt are well covered by EBIT (89.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Hong Kong Exchanges and Clearing's current dividend yield, its reliability and sustainability?
2.75%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 388's dividend (2.75%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.71%).
High Dividend: 388's dividend (2.75%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.21%).
Stability and Growth of Payments
Stable Dividend: 388's dividend payments have been volatile in the past 10 years.
Growing Dividend: 388's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (89.6%), 388's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 388's dividends in 3 years are not forecast to be well covered by earnings (91.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Charles Li (58yo)
10.25s
Tenure
HK$51,105,000
Compensation
Mr. Xiaojia Li, also known as Charles, has been the Chief Executive Officer and Executive Director of Hong Kong Exchanges & Clearing Limited since January 16, 2010. Before joining JP Morgan in 2003, Mr. Li ...
CEO Compensation Analysis
Compensation vs Market: Charles's total compensation ($USD6.59M) is above average for companies of similar size in the Hong Kong market ($USD868.47K).
Compensation vs Earnings: Charles's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 10.25yrs | HK$51.11m | 0.017% HK$52.0m | |
| Co-President | 1.25yrs | HK$16.25m | 0.000010% HK$30.2k | |
| Co-President & COO | 1.08yrs | HK$13.84m | 0.011% HK$33.5m | |
| Group Chief Financial Officer | 0.17yr | no data | 0.0019% HK$5.7m | |
| Group General Counsel | 3.17yrs | HK$12.06m | no data | |
| Group Chief Communications Officer | 1.58yrs | HK$2.37m | no data | |
| Group Head of Human Resources | 3.67yrs | HK$8.98m | no data | |
| Group Chief Technology Officer | 8.58yrs | HK$10.97m | no data | |
| Deputy Chief Financial Officer | no data | no data | no data | |
| Head of Clearing Risk Management - Hong Kong | 7.25yrs | no data | no data |
3.2yrs
Average Tenure
55yo
Average Age
Experienced Management: 388's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 10.25yrs | HK$51.11m | 0.017% HK$52.0m | |
| Independent Non-Executive Director | 3yrs | HK$1.53m | no data | |
| Independent Non-Executive Director | 2yrs | HK$973.00k | no data | |
| Independent Chairman of the Board | 1.92yrs | HK$4.61m | no data | |
| Independent Non-Executive Director | 11yrs | HK$1.29m | no data | |
| Independent Non-Executive Director | 5yrs | HK$1.75m | no data | |
| Independent Non-Executive Director | 5.42yrs | HK$1.12m | no data | |
| Independent Non-Executive Director | 11.83yrs | HK$1.97m | no data | |
| Independent Non-Executive Director | 5yrs | HK$1.13m | no data | |
| Independent Non-Executive Director | 3yrs | HK$2.77m | 0.00016% HK$483.8k |
5.0yrs
Average Tenure
59.5yo
Average Age
Experienced Board: 388's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hong Kong Exchanges and Clearing Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hong Kong Exchanges and Clearing Limited
- Ticker: 388
- Exchange: SEHK
- Founded:
- Industry: Financial Exchanges and Data
- Sector: Diversified Financials
- Market Cap: HK$302.406b
- Shares outstanding: 1.26b
- Website: https://www.hkex.com.hk
Number of Employees
Location
- Hong Kong Exchanges and Clearing Limited
- Two Exchange Square
- 8th Floor
- Central
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HKXC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2000 |
| 388 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jun 2000 |
| HK2C | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2000 |
| 388 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2000 |
| 388 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2000 |
| HKXC.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 2008 |
Biography
Hong Kong Exchanges and Clearing Limited, together with 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 sells related market data. The Commodities segment operates an exchange for the trading of base metals futures and options contracts in the United Kingdom; and operates Qianhai Mercantile Exchange Co., Ltd., a commodity trading platform in the Mainland. This segment also comprises the Asia Commodities contracts, and gold and iron ore futures contracts traded on Hong Kong Futures Exchange Limited. The Clearing segment operates clearing houses that are responsible for 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. The company serves issuers and investors. Hong Kong Exchanges and Clearing Limited is based in Central, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 12:43 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.