Hong Kong Exchanges and Clearing Limited

SZSC:388 Stock Report

Market Cap: HK$361.4b

Hong Kong Exchanges and Clearing Valuation

Is 388 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 388 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 388 (HK$285.8) is trading above our estimate of fair value (HK$202.65)

Significantly Below Fair Value: 388 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 388?

Key metric: As 388 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 388. This is calculated by dividing 388's market cap by their current earnings.
What is 388's PE Ratio?
PE Ratio30.5x
EarningsHK$11.87b
Market CapHK$361.40b

Price to Earnings Ratio vs Peers

How does 388's PE Ratio compare to its peers?

The above table shows the PE ratio for 388 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average53.6x
9636 JF SmartInvest Holdings
174.8x134.4%HK$10.2b
6066 CSC Financial
15.6x38.6%HK$201.0b
6881 China Galaxy Securities
9.7x9.8%HK$143.0b
6608 Bairong
14.2x29.6%HK$4.2b
388 Hong Kong Exchanges and Clearing
30.5x8.3%HK$361.4b

Price-To-Earnings vs Peers: 388 is good value based on its Price-To-Earnings Ratio (30.5x) compared to the peer average (53.6x).

Price to Earnings Ratio vs Industry

How does 388's PE Ratio compare vs other companies in the HK Capital Markets Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2799 China CITIC Financial Asset Management
4.2x-29.2%US$6.60b
8098 CL Group (Holdings)
3.7xn/aUS$11.02m
No more companies available in this PE range
388 30.5xIndustry Avg. 24.5xNo. of Companies7PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 388 is expensive based on its Price-To-Earnings Ratio (30.5x) compared to the Hong Kong Capital Markets industry average (24.5x).

Price to Earnings Ratio vs Fair Ratio

What is 388's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

388 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.5x
Fair PE Ratio12.5x

Price-To-Earnings vs Fair Ratio: 388 is expensive based on its Price-To-Earnings Ratio (30.5x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 388 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$285.80
HK$355.88
+24.5%
14.1%HK$440.00HK$240.00n/a15
Nov ’25HK$311.60
HK$355.75
+14.2%
14.1%HK$440.00HK$240.00n/a15
Oct ’25HK$326.20
HK$291.59
-10.6%
15.4%HK$390.00HK$215.00n/a15
Sep ’25HK$240.40
HK$284.39
+18.3%
12.9%HK$356.00HK$215.00n/a15
Aug ’25HK$230.40
HK$294.69
+27.9%
12.3%HK$356.00HK$223.00n/a15
Jul ’25HK$250.20
HK$298.88
+19.5%
11.6%HK$356.00HK$223.00n/a16
Jun ’25HK$262.80
HK$296.44
+12.8%
12.6%HK$356.00HK$220.00n/a16
May ’25HK$251.60
HK$291.78
+16.0%
12.8%HK$356.00HK$220.00n/a17
Apr ’25HK$227.80
HK$301.60
+32.4%
12.8%HK$360.00HK$221.00n/a17
Mar ’25HK$240.00
HK$315.48
+31.5%
17.6%HK$481.80HK$225.00n/a19
Feb ’25HK$236.80
HK$342.20
+44.5%
15.9%HK$481.80HK$240.00n/a19
Jan ’25HK$268.00
HK$351.39
+31.1%
14.4%HK$481.80HK$240.00n/a19
Dec ’24HK$279.80
HK$352.49
+26.0%
14.1%HK$481.80HK$251.00n/a19
Nov ’24HK$273.80
HK$354.69
+29.5%
14.2%HK$487.00HK$251.00HK$311.6020
Oct ’24HK$292.60
HK$368.20
+25.8%
13.5%HK$487.00HK$251.00HK$326.2019
Sep ’24HK$304.00
HK$366.84
+20.7%
13.3%HK$487.00HK$251.00HK$240.4020
Aug ’24HK$324.20
HK$384.24
+18.5%
13.5%HK$487.40HK$253.00HK$230.4021
Jul ’24HK$295.20
HK$385.48
+30.6%
13.2%HK$487.40HK$253.00HK$250.2021
Jun ’24HK$291.00
HK$387.08
+33.0%
13.2%HK$487.40HK$253.00HK$262.8021
May ’24HK$324.00
HK$392.10
+21.0%
12.0%HK$482.80HK$253.00HK$251.6021
Apr ’24HK$348.20
HK$394.04
+13.2%
13.6%HK$482.80HK$253.00HK$227.8020
Mar ’24HK$330.80
HK$399.37
+20.7%
16.0%HK$525.50HK$220.00HK$240.0021
Feb ’24HK$352.40
HK$386.88
+9.8%
17.9%HK$525.50HK$220.00HK$236.8021
Jan ’24HK$337.20
HK$369.43
+9.6%
18.0%HK$525.50HK$220.00HK$268.0022
Dec ’23HK$317.20
HK$362.59
+14.3%
18.7%HK$525.50HK$220.00HK$279.8021
Nov ’23HK$226.40
HK$367.08
+62.1%
17.5%HK$525.50HK$240.00HK$273.8023

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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