Loading...

Hong Kong Exchanges and Clearing

SEHK:388
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
388
SEHK
HK$288B
Market Cap
  1. Home
  2. HK
  3. Diversified Financials
Company 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. The last earnings update was 41 days ago. More info.


Add to Portfolio Compare Print
388 Share Price and Events
7 Day Returns
1.1%
SEHK:388
-0.5%
HK Capital Markets
1%
HK Market
1 Year Returns
-1.5%
SEHK:388
-30.8%
HK Capital Markets
-11.3%
HK Market
388 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hong Kong Exchanges and Clearing (388) 1.1% 0.5% 2.3% -1.5% 14.8% 75.4%
HK Capital Markets -0.5% -3.6% 1.1% -30.8% -27.8% 3.1%
HK Market 1% -0.8% -4.3% -11.3% 9.8% 3.7%
1 Year Return vs Industry and Market
  • 388 outperformed the Capital Markets industry which returned -30.8% over the past year.
  • 388 outperformed the Market in Hong Kong which returned -11.3% over the past year.
Price Volatility
388
Industry
5yr Volatility vs Market

388 Value

 Is Hong Kong Exchanges and Clearing undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hong Kong Exchanges and Clearing.

SEHK:388 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 13 analysts.
= Stable Book Value * Return on Equity
= HK$33.07 * 26%
HK$8.60
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. HK$33.07
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:388
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2.2%
Equity Risk Premium S&P Global 7.8%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.992 (1 + (1- 25%) (0.65%))
0.997
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.2% + (0.997 * 7.8%)
9.98%

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.

SEHK:388 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (26% – 9.98%) * HK$33.07)
HK$5.30
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= HK$5.30 / (9.98% - 2.2%)
HK$68.20
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= HK$33.07 + HK$68.20
HK$101.27
SEHK:388 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$101.27
Current discount Discount to share price of HK$229.60
= -1 x (HK$229.60 - HK$101.27) / HK$101.27
-126.7%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
SEHK:388 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in HKD HK$7.55
SEHK:388 Share Price ** SEHK (2018-12-18) in HKD HK$229.6
Hong Kong Capital Markets Industry PE Ratio Median Figure of 52 Publicly-Listed Capital Markets Companies 12.15x
Hong Kong Market PE Ratio Median Figure of 1,462 Publicly-Listed Companies 10.55x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hong Kong Exchanges and Clearing.

SEHK:388 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:388 Share Price ÷ EPS (both in HKD)

= 229.6 ÷ 7.55

30.4x

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?
Raw Data
SEHK:388 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
12.8%per year
Hong Kong Capital Markets Industry PEG Ratio Median Figure of 8 Publicly-Listed Capital Markets Companies 0.41x
Hong Kong Market PEG Ratio Median Figure of 457 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

SEHK:388 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 30.4x ÷ 12.8%

2.37x

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?
Raw Data
SEHK:388 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in HKD HK$31.61
SEHK:388 Share Price * SEHK (2018-12-18) in HKD HK$229.6
Hong Kong Capital Markets Industry PB Ratio Median Figure of 74 Publicly-Listed Capital Markets Companies 0.64x
Hong Kong Market PB Ratio Median Figure of 2,093 Publicly-Listed Companies 0.94x
SEHK:388 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:388 Share Price ÷ Book Value per Share (both in HKD)

= 229.6 ÷ 31.61

7.26x

* 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.
X
Value checks
We assess Hong Kong Exchanges and Clearing's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. 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

 How is Hong Kong Exchanges and Clearing expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

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!
Annual Growth Rate
12.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hong Kong Exchanges and Clearing expected to grow at an attractive rate?
  • Hong Kong Exchanges and Clearing's earnings growth is expected to exceed the low risk savings rate of 2.2%.
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
Raw Data
SEHK:388 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:388 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 12.8%
SEHK:388 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 7.8%
Hong Kong Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 18%
Hong Kong Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 12.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*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
Raw Data
SEHK:388 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:388 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 16,433
2021-12-31 14,380
2020-12-31 18,561 12,982 11,955 9
2019-12-31 17,021 11,135 10,244 13
2018-12-31 15,886 8,105 9,349 12
SEHK:388 Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Hong Kong Exchanges and Clearing's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
  • Hong Kong Exchanges and Clearing's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:388 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Hong Kong Exchanges and Clearing Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:388 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 9.46 13.79 7.94 9.00
2019-12-31 8.24 10.12 7.37 13.00
2018-12-31 7.55 7.78 7.39 11.00
SEHK:388 Past Financials Data
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%).
X
Future performance checks
We assess Hong Kong Exchanges and Clearing's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Hong Kong Exchanges and Clearing's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Hong Kong Exchanges and Clearing's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hong Kong Exchanges and Clearing Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:388 Past Revenue, Cash Flow and Net Income Data
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
2011-12-31 7,747.00 5,093.00 1,298.00

*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).
X
Past performance checks
We assess Hong Kong Exchanges and Clearing's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Hong Kong Exchanges and Clearing's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Hong Kong Exchanges and Clearing Company Filings, last reported 2 months ago.

SEHK:388 Past Debt and Equity Data
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
2011-12-31 9,159.00 0.00 9,167.00
  • 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).
X
Financial health checks
We assess Hong Kong Exchanges and Clearing's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hong Kong Exchanges and Clearing has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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

 What is Hong Kong Exchanges and Clearing's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.17%
Current annual income from Hong Kong Exchanges and Clearing dividends. Estimated to be 3.24% next year.
If you bought HK$2,000 of Hong Kong Exchanges and Clearing shares you are expected to receive HK$63 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hong Kong Exchanges and Clearing's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Hong Kong Exchanges and Clearing's dividend is below the markets top 25% of dividend payers in Hong Kong (5.79%).
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.
Raw Data
SEHK:388 Annualized Past and Future Dividends
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 15 Analyst Estimates (S&P Global) See Below
Hong Kong Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 4.6%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 917 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:388 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 8.37 11.00
2019-12-31 7.35 15.00
2018-12-31 6.76 13.00
SEHK:388 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2018-11-07 7.280 3.186
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
2008-12-19 6.800 9.893

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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Hong Kong Exchanges and Clearing's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Hong Kong Exchanges and Clearing's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charles Li
COMPENSATION HK$48,855,350
AGE 57
TENURE AS CEO 8.9 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:

4
Average Tenure
54.5
Average Age
  • The tenure for the Hong Kong Exchanges and Clearing management team is about average.
Management Team

Charles Li

TITLE
CEO & Executive Director
COMPENSATION
HK$49M
AGE
57
TENURE
8.9 yrs

John Killian

TITLE
Group Chief Financial Officer
COMPENSATION
HK$7M
AGE
50
TENURE
1 yrs

Roger Lee

TITLE
Joint COO & Head of Markets
COMPENSATION
HK$13M
AGE
59
TENURE
1.5 yrs

Calvin Tai

TITLE
Joint COO & Head of Clearing
COMPENSATION
HK$13M
AGE
56
TENURE
1.5 yrs

Ferheen Mahomed

TITLE
Group General Counsel
COMPENSATION
HK$18M
AGE
52
TENURE
1.8 yrs

Eva Chau

TITLE
Group Head of Human Resources
COMPENSATION
HK$8M
AGE
55
TENURE
2.3 yrs

Romnesh Lamba

TITLE
Co-Head of Market Development
COMPENSATION
HK$16M
AGE
54
TENURE
8.8 yrs

Richard Leung

TITLE
Deputy Group Chief Information Officer & CTO - Hong Kong
COMPENSATION
HK$10M
AGE
54
TENURE
7.3 yrs

David Graham

TITLE
Chief Regulatory Officer & Head of Listing
COMPENSATION
HK$15M
AGE
59
TENURE
5.9 yrs

Zhirong Mao

TITLE
Head of Mainland Development
COMPENSATION
HK$9M
AGE
54
TENURE
5.6 yrs
Board of Directors Tenure

Average tenure and age of the Hong Kong Exchanges and Clearing board of directors in years:

3.9
Average Tenure
60
Average Age
  • The tenure for the Hong Kong Exchanges and Clearing board of directors is about average.
Board of Directors

Laura Cha

TITLE
Chairman of the Board
COMPENSATION
HK$116K
AGE
68
TENURE
0.7 yrs

Charles Li

TITLE
CEO & Executive Director
COMPENSATION
HK$49M
AGE
57
TENURE
8.9 yrs

Rafael Gil-Tienda

TITLE
Independent Non-Executive Director
AGE
65
TENURE
3.7 yrs

Cheng Hye Cheah

TITLE
Independent Non-Executive Director
AGE
64
TENURE
1.7 yrs

Stephen Yiu

TITLE
Independent Non-Executive Director
AGE
57
TENURE
1.7 yrs

John Mackay Williamson

TITLE
Independent Non-Executive Director
AGE
59
TENURE
10.5 yrs

Benjamin Hung

TITLE
Independent Non-Executive Director
AGE
53
TENURE
0.8 yrs

Ignatius Chan

TITLE
Independent Non-Executive Director
AGE
61
TENURE
9.7 yrs

Margaret Leung

TITLE
Independent Non Executive Director
AGE
66
TENURE
5.7 yrs

Fred Hu

TITLE
Independent Non-Executive Director
AGE
55
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
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
X
Management checks
We assess Hong Kong Exchanges and Clearing's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

External News
Loading...
Simply Wall St News

Why 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 -

Has 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 -

Do 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 -

Is 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 -

Does 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 -

Hong 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 -

Why 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 -

Who Are The Major Shareholders In Hong Kong Exchanges and Clearing Limited (HKG:388)?

I am going to take a deep dive into Hong Kong Exchanges and Clearing Limited’s (HKG:388) most recent ownership structure, not a frequent subject of discussion among individual investors. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … View our latest analysis for Hong Kong Exchanges and Clearing

Simply Wall St -

How Does Hong Kong Exchanges and Clearing Limited (HKG:388) Fare As A Dividend Stock?

Over the past 10 years, Hong Kong Exchanges and Clearing Limited (HKG:388) has returned an average of 3.00% per year to shareholders in terms of dividend yield. … Does Hong Kong Exchanges and Clearing tick all the boxes of a great dividend stock? … See our latest analysis for Hong Kong Exchanges and Clearing

Simply Wall St -

Should You Buy Hong Kong Exchanges and Clearing Limited (HKG:388)?

Let's talk about the popular 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$227.4 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 -

388 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$288,469,960,359
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
Staff numbers
1,703
Hong Kong Exchanges and Clearing employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/18 12:36
End of day share price update: 2018/12/18 00:00
Last estimates confirmation: 2018/12/11
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.