Komo: Maintaining the HKEx (00388) “Overweight” rating and target price of HK$490, the results for the third quarter fell slightly short of expectations

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it will maintain the Hong Kong Stock Exchange (00388) “increase” rating and the target price of HK$490. The net profit of the Hong Kong Stock Exchange for the third quarter was HK$4.86 billion, down 10% from quarter to quarter, down 1% year on year, and 2% lower than the bank's forecast. The bank believes that the performance fell slightly short of expectations, and the trend of weak trading volume has generally been reflected, while the average daily turnover of Hong Kong stocks has recently rebounded.

According to J.P. Morgan Chase, the Hong Kong Stock Exchange's third-quarter revenue fell 7% quarterly, mainly due to a decline in securities and derivatives trading volume, which was partly offset by a 4% quarterly increase in market data fees. Net interest income fell 23% quarterly, slightly lower than expected, mainly due to lower net interest income from corporate capital, which recorded a revaluation income of HK$290 million in the second quarter. Costs for the period increased 6% year over year, lower than expected, and employee costs remained flat from quarter to quarter.

The bank said that since this week, the average daily turnover of Hong Kong stocks has reached HK$259 billion, higher than the October average of HK$181 billion. If the Chinese market rebounds, as stocks with high beta values for the Hang Seng Index and the MSCI China Index, the Hong Kong Stock Exchange is expected to benefit. J.P. Morgan currently estimates that the average daily turnover of Hong Kong stocks from 2026 to 2028 will be HK$251 billion, HK$240 billion and HK$252 billion, respectively.