Broker: UOB Kay Hian
Date of Report: 22 April 2026

Excerpt from UOB Kay Hian report.

Report Summary

• Stock Focus: Hong Kong Exchanges and Clearing (HKEX) [Ticker: 388 HK]
• Action: BUY (Maintained)
• Target Price: HK\$545.00 (lowered from HK\$552.00)
• Most Important Idea: UOB Kay Hian expects HKEX to deliver resilient earnings in 1Q26, with 12% year-on-year profit growth and 9% revenue growth, driven by strong market turnover, robust IPO activity, and increased trading volumes, partly offset by lower net investment income.
• Highlights:
  • Strong earnings supported by a buoyant IPO market and increased trading in cash, derivatives, and commodities.
  • Headline average daily turnover (ADT) surged 20% quarter-on-quarter; derivatives and commodity trading reached record highs.
  • HKEX’s IPO pipeline remains robust, with more than 500 active applicants.
  • Net investment income is expected to fall 22% year-on-year due to lower HIBOR rates and reduced fair value gains.
  • The broker remains cautiously optimistic, despite macro uncertainties, citing ongoing support from a declining HIBOR environment and a healthy IPO pipeline.
  • 2026 earnings forecast cut by 3.6% to reflect revised market turnover assumptions.

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