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, Mainland China, and the United Kingdom. More Details
No risks detected for 388 from our risk checks.
Flawless balance sheet with outstanding track record.
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 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 388's weekly volatility (4%) has been stable over the past year.
7 Day Return
HK Capital Markets
1 Year Return
HK Capital Markets
Return vs Industry: 388 exceeded the Hong Kong Capital Markets industry which returned 42.5% over the past year.
Return vs Market: 388 exceeded the Hong Kong Market which returned 11% over the past year.
Long-Term 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
2 days ago | Simply Wall StWhy Dividend Hunters Love Hong Kong Exchanges and Clearing Limited (HKG:388)
2 weeks ago | Simply Wall StRevenue Beat: Hong Kong Exchanges and Clearing Limited Exceeded Revenue Forecasts By 5.8% And Analysts Are Updating Their Estimates
1 month ago | Simply Wall StWhat Type Of Shareholders Own The Most Number of Hong Kong Exchanges and Clearing Limited (HKG:388) Shares?
Is Hong Kong Exchanges and Clearing undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 388 (HK$384.8) is trading above our estimate of fair value (HK$161.07)
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 (46x) compared to the HK Capital Markets industry average (12.2x).
PE vs Market: 388 is poor value based on its PE Ratio (46x) compared to the Hong Kong market (11.1x).
Price to Earnings Growth Ratio
PEG Ratio: 388 is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: 388 is overvalued based on its PB Ratio (10.6x) compared to the HK Capital Markets industry average (0.5x).
How is Hong Kong Exchanges and Clearing forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 388's forecast earnings growth (12.9% per year) is above the savings rate (1.6%).
Earnings vs Market: 388's earnings (12.9% per year) are forecast to grow slower than the Hong Kong market (21.3% per year).
High Growth Earnings: 388's earnings are forecast to grow, but not significantly.
Revenue vs Market: 388's revenue (12.1% per year) is forecast to grow slower than the Hong Kong market (13.6% per year).
High Growth Revenue: 388's revenue (12.1% 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 (32.6%)
How has Hong Kong Exchanges and Clearing performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 388 has high quality earnings.
Growing Profit Margin: 388's current net profit margins (59.4%) are higher than last year (57.5%).
Past Earnings Growth Analysis
Earnings Trend: 388's earnings have grown by 8.5% per year over the past 5 years.
Accelerating Growth: 388's earnings growth over the past year (14.3%) exceeds its 5-year average (8.5% per year).
Earnings vs Industry: 388 earnings growth over the past year (14.3%) exceeded the Capital Markets industry 14.1%.
Return on Equity
High ROE: 388's Return on Equity (22.8%) is considered high.
How is Hong Kong Exchanges and Clearing's financial position?
Financial Position Analysis
Short Term Liabilities: 388's short term assets (HK$292.2B) exceed its short term liabilities (HK$266.0B).
Long Term Liabilities: 388's short term assets (HK$292.2B) exceed its long term liabilities (HK$3.5B).
Debt to Equity History and Analysis
Debt Level: 388's debt to equity ratio (0.9%) is considered satisfactory.
Reducing Debt: 388's debt to equity ratio has reduced from 11.9% to 0.9% over the past 5 years.
Debt Coverage: 388's debt is well covered by operating cash flow (3137.9%).
Interest Coverage: 388's interest payments on its debt are well covered by EBIT (91.2x coverage).
What is Hong Kong Exchanges and Clearing current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 388's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.2%).
High Dividend: 388's dividend (1.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.59%).
Stability and Growth of Payments
Stable Dividend: 388's dividend payments have been volatile in the past 10 years.
Growing Dividend: 388's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.6%), 388's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 388's dividends in 3 years are forecast to be covered by earnings (85% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Charles Li (59 yo)
Mr. Xiaojia Li, also known as Charles, has been the Chief Executive Officer and Executive Director of Hong Kong Exchanges & Clearing Limited since January 16, 2010. Before joining JP Morgan in 2003, Mr. Li...
CEO Compensation Analysis
Compensation vs Market: Charles's total compensation ($USD6.59M) is above average for companies of similar size in the Hong Kong market ($USD838.60K).
Compensation vs Earnings: Charles's compensation has been consistent with company performance over the past year.
|CEO & Executive Director||10.92yrs||HK$51.11m||0.018% |
|Co-President & COO||1.75yrs||HK$13.84m||0.011% |
|Group Chief Financial Officer||0.83yr||no data||0.0019% |
|Group General Counsel||3.83yrs||HK$12.06m||no data|
|Group Chief Communications Officer||2.25yrs||HK$2.37m||no data|
|Group Head of Human Resources||4.33yrs||HK$8.98m||no data|
|Group Chief Technology Officer||9.25yrs||HK$10.97m||no data|
|Deputy Chief Financial Officer||no data||no data||no data|
|Head of Clearing Risk Management - Hong Kong||7.92yrs||no data||no data|
|Co-Head of Clearing Risk Management and Chief Risk Officer of LME Clear||no data||no data||no data|
|Head of Mainland Development||7.58yrs||HK$8.90m||no data|
Experienced Management: 388's management team is considered experienced (4.1 years average tenure).
|CEO & Executive Director||10.92yrs||HK$51.11m||0.018% |
|Independent Non-Executive Director||3.67yrs||HK$1.53m||no data|
|Independent Non-Executive Director||4.67yrs||HK$940.00k||no data|
|Independent Non-Executive Director||2.67yrs||HK$973.00k||no data|
|Independent Chairman of the Board||2.58yrs||HK$4.61m||no data|
|Independent Non-Executive Director||11.67yrs||HK$1.29m||no data|
|Independent Non-Executive Director||5.67yrs||HK$1.75m||no data|
|Independent Non-Executive Director||6.08yrs||HK$1.12m||no data|
|Independent Non-Executive Director||12.5yrs||HK$1.97m||no data|
|Independent Non-Executive Director||5.67yrs||HK$1.13m||no data|
|Independent Non-Executive Director||3.67yrs||HK$1.51m||no data|
|Independent Non-Executive Director||3.67yrs||HK$2.77m||0.00016% |
Experienced Board: 388's board of directors are considered experienced (5.2 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hong Kong Exchanges and Clearing Limited's company bio, employee growth, exchange listings and data sources
- Name: Hong Kong Exchanges and Clearing Limited
- Ticker: 388
- Exchange: SEHK
- Industry: Financial Exchanges and Data
- Sector: Diversified Financials
- Market Cap: HK$480.290b
- Shares outstanding: 1.26b
- Website: https://www.hkex.com.hk
Number of Employees
- Hong Kong Exchanges and Clearing Limited
- Two Exchange Square
- 8th Floor
- Hong Kong
|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|
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, Mainland China, and the United K...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/12/03 10:19|
|End of Day Share Price||2020/12/03 00:00|
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.