Kenny Lim, an analyst from UOB Kay Hian, maintained the Buy rating on Hong Kong Exchanges & Clearing (HKXCF – Research Report). The associated price target is HK$394.00.
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Kenny Lim has given his Buy rating due to a combination of factors influencing Hong Kong Exchanges & Clearing’s (HKEX) performance. The company is anticipated to report a significant year-on-year net profit growth of 36.3% for the first quarter of 2025, primarily driven by a robust average daily turnover performance amid the AI boom in China. Despite the initial surge in trading volume due to market uncertainties following the US tariff shock, Lim expects the turnover velocity to moderate as risk-off sentiment becomes more prevalent.
Furthermore, the current valuation of HKEX is considered reasonable, especially after a recent market pullback, which supports the Buy recommendation. Lim also highlights the broad market rally that has boosted the bourse’s revenue, with the Hang Seng Index closing 15% higher in the first quarter of 2025. Although there are concerns about a higher effective tax rate due to the introduction of a global minimum tax, the overall earnings growth projection remains strong, reinforcing the positive outlook for HKEX.
In another report released on April 11, Goldman Sachs also maintained a Buy rating on the stock with a HK$378.00 price target.