Analyst Estimates: Here's What Brokers Think Of Hong Kong Exchanges and Clearing Limited (HKG:388) After Its Third-Quarter Report

As you might know, Hong Kong Exchanges and Clearing Limited (HKG:388) just kicked off its latest third-quarter results with some very strong numbers. The company beat expectations with revenues of HK$7.8b arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were HK$3.88, 3.3% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Hong Kong Exchanges and Clearing from 19 analysts is for revenues of HK$29.1b in 2026. If met, it would imply a modest 4.2% increase on its revenue over the past 12 months. Statutory per share are forecast to be HK$13.62, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$28.6b and earnings per share (EPS) of HK$13.36 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Hong Kong Exchanges and Clearing

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$503. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Hong Kong Exchanges and Clearing analyst has a price target of HK$562 per share, while the most pessimistic values it at HK$374. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Hong Kong Exchanges and Clearing shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Hong Kong Exchanges and Clearing's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2026 being well below the historical 5.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Hong Kong Exchanges and Clearing is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at HK$503, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Hong Kong Exchanges and Clearing going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Hong Kong Exchanges and Clearing that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.