HKEx earned 20% in the previous quarter. Li Xiaojia has confidence in the annual results.

The Hong Kong Stock Exchange (00388) announced its results as of the end of September. The first three quarters of revenue increased 27% year-on-year to 12.296 billion yuan, and net profit rose 35% year-on-year to 7.484 billion yuan, both with record records and basic earnings per share of 6.03 yuan. Even if the profit in the third quarter alone rose by 20% year-on-year to 2.443 billion yuan, it still beat market expectations. Li Xiaojia, chief executive of the Hong Kong Stock Exchange, expressed confidence in the full-year results.

First September net profit of 7.5 billion record

After the results announcement, the Bank is generally optimistic about the Hong Kong Stock Exchange, but HSBC Securities lowered its target price to 280 yuan. After the Hong Kong Stock Exchange announced its results at noon, the stock price had seen a high of 230.4 yuan over the two-month high. Before the market closed, the stock price rose back to 1.17%, and closed at 224.4 yuan, with a turnover of 1.508 billion yuan.

The average daily turnover of the Hong Kong stock market in the third quarter was 91.9 billion yuan, down 14% from the second quarter and down 1% year-on-year. In addition, the Sino-US trade war dragged down the investment sentiment, and the Hong Kong Stock Exchange was underestimated by the big banks. The quarterly results announced yesterday were better than expected. The third quarter revenue and other income recorded 4.1 billion yuan, up 19% year-on-year, and profit was 2.443 billion yuan, up 20%. According to the HKEx, the increase in revenue was mainly due to the strong turnover of the spot market and the derivatives market; the number of newly listed derivative warrants, CBBCs and IPOs all hit new highs, driving the increase in listing fees. Li Xiaojia also pre-reported, “Although there are still many variables in the global macroeconomic and political environment, we are still confident in the performance of this year’s full year.”

The transaction turned cold and always affected the income of the spot segment. The first three quarters revenue was 3.033 billion yuan, up only 26% year-on-year, EBITDA rose 32% to 2.61 billion yuan, while the derivatives segment performed strongly, with revenue of 2.59 billion yuan up 68%, EBITDA It rose 82% to 2.17 billion yuan. The net investment income of the settlement segment also increased by 72% or 420 million in the first three quarters, mainly due to the increase in the average amount of margin on interest rate listing and futures settlement companies, which led to an increase in interest income. The total revenue of the first three quarters of the Shanghai-Shenzhen-Hong Kong Stock Connect was 521 million yuan, up 88% year-on-year.

HSBC cuts the target price of profit detection

Morgan Stanley believes that the Hong Kong Stock Exchange’s earnings have become stable. If the transaction rebounds, its earnings per share and valuation will be quite “meaningful”, giving the basic situation target price of 290 yuan. Goldman Sachs also maintained its target price of 295 yuan.

HSBC Securities pointed out that the stock price of the Hong Kong Stock Exchange has fallen by 6% during the quarter, reflecting investors’ worries about the short-term prospects. Although the bank believes that the future financing needs of the Shanghai-Shenzhen-Hong Kong Stock Connect and the mainland “unicorn” enterprises will reach 1 trillion yuan, and the net Investment income is expected to continue to improve, but the HKEx will still be affected by unfavorable macroeconomic environment, supervision and monetary policy. The bank lowered its 2019 earnings forecast by 6% and lowered its target price from 300 yuan to 280 yuan. Maintain a “Buy” rating.