Broker: UOB Kay Hian
Date of Report: Wednesday, 22 April 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Stock Focus: Hong Kong Exchanges and Clearing (HKEX) (388 HK)
- Action: BUY (Maintained)
- Target Price: HK\$545.00 (lowered from previous HK\$552.00)
- Key Insights:
- HKEX is expected to report 12% year-on-year earnings growth in 1Q26, driven by strong turnover across cash, derivative, and commodities markets, and a robust IPO market, partly offset by lower net investment income.
- The report maintains a cautiously optimistic outlook due to resilient market turnover, a strong IPO pipeline, and falling HIBOR rates despite ongoing macro uncertainty.
- Revenue/earnings growth is mainly attributed to a 17% year-on-year surge in core revenue and a 20% quarter-on-quarter increase in average daily turnover (ADT) to HK\$276.7b amid increased market volatility.
- Derivative and commodity trading volumes reached record highs following geopolitical events, with system enhancements supporting increased volumes and liquidity.
- IPO market momentum continues, with 40 new listings raising HK\$109.9b and more than 500 applicants in the pipeline, though regulatory scrutiny and banker shortages may cap further upside.
- The earnings forecast for 2026 was cut by 3.6% due to reduced market turnover assumptions, but the overall outlook remains positive.
Ticker: 388 HK
Call to Action: BUY with a target price of HK\$545.00
above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website : https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc
