Hong Kong Exchanges & Clearing (0388) AI Stock Analysis

• Market Cap: HK$550.21B
• Dividend Yield: 2.66%
• Average Volume (3M): 5.37M
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.52
• Revenue Growth: 35.41%
• EPS Growth: 29.82%
• Country: HK
• Employees: 2,444
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 3.87
• Shares Outstanding: 1,267,836,900
• 10 Day Avg. Volume: 6,295,744
• 30 Day Avg. Volume: 5,367,382
• PEG Ratio: 2.83
• Price to Book (P/B): 6.92
• Price to Sales (P/S): 21.49
• P/FCF Ratio: 33.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$522.80
• Price Target Upside: 20.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$464.00 ▲(6.72% Upside)

The overall stock score is primarily driven by strong financial performance, which indicates robust growth and profitability. However, technical analysis shows bearish trends, and the high P/E ratio raises valuation concerns. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective business strategies, supporting long-term financial stability.

Cash Generation

Effective cash generation from operations ensures the company can fund expansions and dividends, supporting sustainable growth.

Profitability

High profitability reflects efficient operations and cost management, enhancing the company's ability to withstand market fluctuations.

Negative Factors

Rising Liabilities

Increasing liabilities could pose a future risk if not managed properly, potentially impacting financial flexibility and stability.

Negative Cash Flow from Financing

Consistently negative cash flow from financing activities may limit the company's ability to manage debt and fund future growth.

High Dividend Payouts

High dividend payouts could strain financial resources, potentially limiting reinvestment in growth opportunities and innovation.

Hong Kong Exchanges & Clearing Business Overview & Revenue Model

Company Description

Hong Kong Exchanges and Clearing Limited, together with its subsidiaries, owns and operates stock exchanges and futures exchanges, and related clearing houses in Hong Kong, Mainland China, and the United Kingdom. It operates through five segments: Cash, Equity and Financial Derivatives, Commodities, Post Trade, and Technology. The Cash segment covers various equity products traded on the cash market platforms of the Stock Exchange of Hong Kong Limited, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange; sale of market data relating to the products; and other related activities. The Equity and Financial Derivatives segment provides and maintains trading platforms for a range of equity and financial derivative products, such as stock and equity index futures and options, derivative warrants, and callable bull/bear contracts and warrants, as well as sells related market data. The Commodities segment operates an exchange for the trading of base, ferrous, and precious metals futures and options contracts in the United Kingdom; and operates Qianhai Mercantile Exchange Co., Ltd., a commodity trading platform in the Mainland. This segment also covers commodities contracts traded on Futures Exchange. The Post Trade segment operates clearing houses that are responsible for clearing, settlement, depository, custodian, and nominee services. The Technology segment offers various services that provide users with access to the platform and infrastructure. The company serves issuers and investors. Hong Kong Exchanges and Clearing Limited is based in Central, Hong Kong.

How the Company Makes Money

HKEX generates revenue through multiple streams, primarily from trading fees, clearing fees, and listing fees. Trading fees are charged on transactions executed on the stock and derivatives markets, while clearing fees are applied to the settlement and clearing of trades. Listing fees are collected from companies seeking to list their shares on the exchange. Additionally, HKEX earns revenue from market data services, providing real-time and historical data to various market participants. Significant partnerships, such as those with financial institutions and global exchanges, enhance its liquidity and trading volume, contributing to its overall earnings. The diversification of products, including derivatives and commodities, also plays a crucial role in stabilizing revenue during varying market conditions.

Hong Kong Exchanges & Clearing Financial Statement Overview

Summary

Hong Kong Exchanges & Clearing demonstrates strong financial health across all statements. The company is achieving robust revenue and profit growth, maintaining a solid balance sheet, and generating substantial cash flow. While liabilities have increased, the overall risk is mitigated by high profitability and effective cash management. The company is well-positioned for future growth, supported by its efficient operational and financial strategies.

Income Statement

The income statement reflects strong growth and profitability. Gross profit margin is high, indicating efficient cost management. The net profit margin is robust, supported by a consistent increase in net income. Revenue growth has shown a positive trajectory, and both EBIT and EBITDA margins are healthy, signaling operational efficiency and strong earnings capability.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, indicating conservative leverage. The return on equity is strong, reflecting efficient use of shareholder capital. The equity ratio is stable, suggesting a balanced capital structure. However, the total liabilities have increased, which could pose a future risk if not managed properly.

Cash Flow

Cash flow analysis shows a strong operating cash flow to net income ratio, highlighting effective cash generation from operations. Free cash flow growth has been positive, supporting the company's ability to fund expansions and dividends. However, cash flow from financing activities is consistently negative, indicating high dividend payouts or debt repayments, which should be monitored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.77B	17.35B	15.45B	16.93B	19.47B	16.84B
Gross Profit	14.50B	12.94B	11.46B	13.30B	16.18B	13.12B
EBITDA	17.75B	22.15B	20.87B	15.48B	16.34B	15.01B
Net Income	12.30B	13.05B	11.86B	10.08B	12.54B	11.51B
Balance Sheet
Total Assets	424.87B	381.63B	341.18B	406.05B	399.30B	399.11B
Cash, Cash Equivalents and Short-Term Investments	282.46B	230.91B	224.70B	276.39B	342.33B	328.61B
Total Debt	873.00M	1.75B	1.60B	2.24B	2.06B	2.78B
Total Liabilities	367.42B	327.22B	289.38B	355.95B	349.39B	349.87B
Stockholders Equity	56.91B	53.85B	51.34B	49.73B	49.63B	48.92B
Cash Flow
Free Cash Flow	0.00	11.17B	10.11B	13.67B	11.27B	13.42B
Operating Cash Flow	0.00	12.77B	11.50B	14.96B	12.34B	14.77B
Investing Cash Flow	0.00	3.19B	-6.29B	-1.70B	2.28B	-7.48B
Financing Cash Flow	0.00	-11.26B	-11.25B	-10.37B	-12.67B	-7.47B

Hong Kong Exchanges & Clearing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 434.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0388, the sentiment is Positive. The current price of 434.8 is above the 20-day moving average (MA) of 414.97, above the 50-day MA of 416.21, and above the 200-day MA of 407.22, indicating a bullish trend. The MACD of 5.44 indicates Negative momentum. The RSI at 68.38 is Neutral, neither overbought nor oversold. The STOCH value of 81.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0388.

Hong Kong Exchanges & Clearing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	69 Neutral	HK$407.10M	6.74	2.75%	4.88%	-12.94%	-15.93%
0388	69 Neutral	HK$550.21B	35.69	32.76%	2.66%	35.41%	29.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0216	53 Neutral	HK$319.79M	-0.44	-9.81%	―	48.60%	-441.98%
1141	53 Neutral	HK$987.27M	11.11	6.23%	―	126.33%	―
2139	48 Neutral	HK$3.72B	5.89	1.72%	―	-9.56%	-7.51%
0674	44 Neutral	HK$257.14M	-4.14	-11.63%	―	10.80%	70.76%

Hong Kong Exchanges & Clearing Corporate Events

HKEX Schedules Board Meeting to Approve 2025 Financial Results

Hong Kong Exchanges and Clearing Limited (HKEX) has announced a Board of Directors meeting scheduled for February 26, 2026, to approve the final results for the year ending December 31, 2025, and consider dividend payments. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0388) stock is a Buy with a HK$505.00 price target. To see the full list of analyst forecasts on Hong Kong Exchanges & Clearing stock, see the HK:0388 Stock Forecast page.

HKEX Announces Strategic Investment in CMU OmniClear Holdings

HKEX has announced a strategic investment in CMU OmniClear Holdings Limited, acquiring a 20% stake through a transaction with the Exchange Fund managed by the Hong Kong Monetary Authority (HKMA). This investment, valued at up to HK$455 million, aims to strengthen the partnership between HKEX and HKMA to advance Hong Kong’s fixed-income and currencies ecosystem. The collaboration is expected to enhance the post-trade securities infrastructure in Hong Kong, with a focus on expanding investor services, asset class coverage, and collateral management, thereby boosting CMU’s competitiveness and efficiency. The completion of the investment is contingent upon certain conditions, including CMU OmniClear Holdings acquiring full ownership of CMU OmniClear.

The most recent analyst rating on (HK:0388) stock is a Buy with a HK$540.00 price target. To see the full list of analyst forecasts on Hong Kong Exchanges & Clearing stock, see the HK:0388 Stock Forecast page.

HKEX Proposes Auditor Change to KPMG for 2026

HKEX has announced a proposed change of its external auditor, appointing KPMG for the year ending December 31, 2026, following a tender process and recommendation by its Audit Committee. This decision, pending shareholder approval at the 2026 AGM, marks a shift from PricewaterhouseCoopers, which will conclude its services after the 2025 audit. The change aligns with HKEX’s commitment to high corporate governance standards, with no issues reported regarding PwC’s retirement.

The most recent analyst rating on (HK:0388) stock is a Buy with a HK$540.00 price target. To see the full list of analyst forecasts on Hong Kong Exchanges & Clearing stock, see the HK:0388 Stock Forecast page.

HKEX Reports Record Trading Volumes and Strategic Initiatives for 2025

Hong Kong Exchanges and Clearing Limited reported record highs in trading volumes and a strong IPO pipeline for the first nine months of 2025. The company has made strategic moves to enhance market connectivity and liquidity, including signing MOUs with international exchanges and implementing new trading solutions. These initiatives are expected to strengthen HKEX’s position in global capital markets and support the development of a multi-asset ecosystem.

The most recent analyst rating on (HK:0388) stock is a Hold with a HK$464.00 price target. To see the full list of analyst forecasts on Hong Kong Exchanges & Clearing stock, see the HK:0388 Stock Forecast page.