Citibank: Maintaining the HKEx (00388) “Buy” Rating Target Price of HK$495

The Zhitong Finance App learned that Citi released a research report saying that it believes that the steady performance of the Hong Kong Exchange (00388) will help boost market sentiment about the stock. The target price is HK$495, and the rating is “buy.” Profit attributable to shareholders of the Hong Kong Stock Exchange in the second quarter was HK$5.4 billion, up 4% from quarter to quarter and 21% year-on-year, up 13% and 7% higher than market and bank expectations, respectively. Core revenue increased 5% quarterly and 31% year-on-year, 8% higher than market expectations, benefiting from strong equity securities transactions. Investment income of HK$1.3 billion was flat from quarter to quarter, down 17% year over year, 23% higher than market expectations. However, after deducting income from unlisted equity investments of HK$290 million during the period, investment income was 5% lower than market expectations. Operating expenses increased 8% year over year, 1% higher than market expectations. The interim dividend was HK$7.43 per share, maintaining a payout ratio of approximately 89%.