HKEX 0388

[winston]

vested

Brokers See HKEX 1Q21 NP +69%, Helped by Vibrant Trade, New Econ IPOs

HKEX (00388.HK) will unveil its 1Q21 results on 28 April.

Thanks to vibrant trading in the quarter, the firm's 1Q21 net profit may range $3.392-4.029 billion, up 50%-78.1% yearly according to brokers' forecast as compiled by our reporters.

The median estimate is $3.82 billion, up 68.9% annually.

CICC saw trends of improvement in Southbound and Northbound fund inflows, new economy IPOs in Hong Kong, and enrichment of derivatives.

Brokers│2021E NP ($)│YoY Change
Morgan Stanley│4.029B│+78.1%
JPMorgan│3.842B│+69.8%
CICC│3.82B│+68.9%
Citigroup│3.8B│+68%
Goldman Sachs│3.392B│+50%

Based on 1Q20 net profit of $2.262 billion.

Source: AAStocks Financial News

[winston]

vested

<Research Report>Ratings & TPs on HKEX (00388.HK) (Table) (Update)

HKEX (00388.HK) will release 1Q21 results this Wednesday.

Brokers│Ratings│TPs (HK$)
UBS│Buy│615
CICC│Outperform│611
Credit Suisse│Outperform│590
DBS│Buy│574
Citigroup│Buy│570
BofA Securities│Buy│549
JPMorgan│Overweight│545
Nomura│Neutral│517.4
Morgan Stanley│Equalweight│485
Goldman Sachs│Sell│400

Source: AAStocks Financial News

[winston]

vested

<Result Foresight>Brokers See HKEX 1Q21 NP +69%, Helped by Vibrant Trade, New Econ IPOs (Update)

HKEX (00388.HK) will unveil its 1Q21 results on 28 April.

Thanks to vibrant trading in the quarter, the firm's 1Q21 net profit may range $3.392-4.029 billion, up 50%-78.1% yearly according to brokers' forecast as compiled by our reporters.

The median estimate is $3.82 billion, up 68.9% annually.

CICC saw trends of improvement in Southbound and Northbound fund inflows, new economy IPOs in Hong Kong, and enrichment of derivatives.

-----------------------------------------

Brokers│2021E NP ($)│YoY Change
Morgan Stanley│4.029B│+78.1%
JPMorgan│3.952B│+74.7%
CICC│3.82B│+68.9%
Citigroup│3.8B│+68%
Goldman Sachs│3.392B│+50%

Based on 1Q20 net profit of $2.262 billion.

Source: AAStocks Financial News

[winston]

vested

HKEX 1Q Profit Up 70% YoY to $3.84B, In Line

HKEX (00388.HK) announced the first-quarter results.

Net profit burgeoned 70% yearly to $3.84 billion, slightly above $3.82 billion in brokers' median forecast as compiled by our reporters. EPS equaled $3.03.

Dividend History
Announce Date Event Particular
2021/02/24 Final D:HKD 4.4600
2020/11/11 Quarter 3 No Dividend
2020/08/19 Interim D:HKD 3.7100
2020/05/07 Quarter 1 No Dividend

EBITDA leaped 61% annually to $4.809 billion.

Source: AAStocks Financial News

[winston]

vested

HONG KONG EXCHANGES & CLEARING LIMITED (388 HK)
Recommendation : BUY
Fair Value : HKD 540.00

1Q21 CORE EARNINGS IN-LINE WITH EXPECTATIONS.

Robust cash trading revenue
Watch out for key initiatives update
Raising average daily turnover assumption

HKEX's 1Q21 net profit surged 69% y/y but was around 5% lower than consensus estimates. The miss was mainly due to lower investment income.

Having said that, core earnings was in-line with consensus estimates.

Revenue from cash trading surged 76% y/y, thanks to the surge of average daily turnover (ADT) to HK$224bn (+86% y/y).

Northbound & Southbound ADT rose 63% & 181% y/y respectively.

Revenue from Stock Connect rose 82% y/y & accounted for about 14% of core revenue.


Share price has pulled back 13% since its peak in February. Year-to-date average daily turnover (ADT) is well above our previous ADT assumption.

We are revising up our ADT assumption to HK$185bn (vs. HK$155bn previously). We are raising our earnings estimates by 5-8% in the next two years.

Our Fair Value estimate is revised up to HK$540, which is based on the new ADT assumption & an unchanged valuation multiple of 45x 12-month forward P/E.

We maintain our constructive view on HKEX over the medium- and long-term given its unique position to global capital flows.

Source: OCBC

[winston]

Latest Ratings, TPs, Views on HKEX (00388.HK) Post QoQ Results (Table)

Brokers│Ratings│TPs ($)
CICC│Outperform│611
UBS│Buy│615-> 604
Credit Suisse│Outperform│590
Citigroup│Buy│570
JPMorgan│Overweight│545
Everbright Securities│Overweight│514.6
Nomura│Neutral│517.4->513.2
Goldman Sachs│Sell│400
Jefferies│Hold│360.04

Brokers│Views
CICC│result in line; higher contribution from new econ names, CN-HK Stock Connect
UBS│core rev strong
Credit Suisse│investment rev misses but core rev beats
Citigroup│several new products coming; lacks practical biz guidance
JPMorgan│maintains structurally positive factors
Everbright Securities│stays upbeat on IPOs, CN-HK Stock Connect progress
Nomura│core rev beats but earnings miss
Goldman Sachs│earnings hit peak of the cycle
Jefferies│earnings broadly in line despite more downside risks

Source: AAStocks Financial News

[winston]

HKEX rises 5pc as Aguzin says commodities clout growing

by Winnie Lee

Recently, the bourse became the first overseas institution to invest in a futures exchange in mainland China.

Source: The Standard

https://www.thestandard.com.hk/section- ... ut-growing

[winston]

vested

China Securities Forecasts HKEX's NP to Jump 8% in 2Q, Become Top Listing Spot for New Econ Stocks

HKEX (00388.HK)'s full-year total revenue for 2021 is estimated to be HKD5.11 billion, up 7.1% year-over-year and its net profit estimated to be HKD3.22 billion, up 8.1% year-over-year and down 16.1% quarter-over-quarter, reported China Securities.

China Securities' report further remarked that HKEX has been amassing new economy enterprises and aiming to become the top choice for new economy IPOs since its reform of the listing system in 2018.

Over the past three years, new economy companies have already become an integral component of the Hong Kong market and have formed a constantly strengthening critical mass.

Source: AAStocks Financial News

[winston]

vested

HKEX (00388.HK) Soars Over 5% as IPO Process Set to Expedite

HKEX (00388.HK) mounted 5.1% to last post at $490.2, once peaking at $492.

Yesterday, HKEX announced to introduce the new FINI platform to comprehensively streamline and digitalize Hong Kong's IPO settlement process.

Source: AAStocks Financial News

[winston]

Beijing clamp on overseas listings won't benefit HK

by Andrew Wong

The guidelines require all red-chip variable interest entities to get approval from the China Securities Regulatory Commission before going public in the United States or Hong Kong.

Firstly, relations between China and the United States and even other European states continue to be at low point, so if Chinese firms list overseas, there is the fear that US regulators might take advantage of listing hearings and force them to hand over sensitive information.

Second, the meteoric rise of Tencent, Alibaba and other tech giants have made their assets huge enough to compete with a country. So if these enterprises are listed overseas or in Hong Kong and they cash out their assets there, it could result in massive outflows from China.

Thus, tech stocks with billions or trillions in market value may find it difficult to perform well while those below market value might have better prospects, which is worth noting.

Source: The Standard

https://www.thestandard.com.hk/section- ... benefit-HK