Hong Kong Exchanges & Clearing Ltd. (HK:0388)
:0388
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Hong Kong Exchanges & Clearing
(0388)
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Rating:74Outperform
Price Target:
HK$451.00
â–²(13.89% Upside)
Action:UpgradedDate:03/19/26
The score is driven primarily by strong financial performance (best-in-class profitability, low leverage, and solid cash conversion with a meaningful 2025 rebound). This is tempered by a neutral-to-weak technical setup (below major moving averages and negative MACD) and a relatively high P/E, partly offset by a ~3.1% dividend yield.
Positive Factors
High Profitability
Sustained very high net margins (~60%+) indicate durable earnings power from fee-based market infrastructure. High profitability supports reinvestment, dividend capacity and resilience to cyclical revenue swings, underpinning long-term cash returns to stakeholders.
Negative Factors
Cyclical Revenue & Cash Flow
Revenue and cash flow have shown material year-to-year swings, driven by IPO cycles and market turnover. This structural cyclicality complicates forecasting, can pressure margins in weak market windows, and may force conservative capital or dividend policies in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained very high net margins (~60%+) indicate durable earnings power from fee-based market infrastructure. High profitability supports reinvestment, dividend capacity and resilience to cyclical revenue swings, underpinning long-term cash returns to stakeholders.
Read all positive factors
Hong Kong Exchanges & Clearing (0388) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$501.11B
Dividend Yield2.66%
Average Volume (3M)5.37M
Price to Earnings (P/E)29.0
Beta (1Y)1.51
Revenue Growth35.41%
EPS Growth29.82%
CountryHK
Employees2,444
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)3.43
Shares Outstanding1,267,836,900
10 Day Avg. Volume6,295,744
30 Day Avg. Volume5,367,382
Financial Highlights & Ratios
PEG Ratio0.80
Price to Book (P/B)8.86
Price to Sales (P/S)17.67
P/FCF Ratio24.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$512.19Price Target Upside29.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)14.58
Revenue Forecast (FY)HK$30.66B
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:...
How the Company Makes Money
HKEX primarily earns revenue by charging fees across the market lifecycle—listing, trading, clearing/settlement, and information services—plus revenue from its LME business and investment income on funds it holds in the course of operating clearin...
Hong Kong Exchanges & Clearing Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.77B | 29.16B | 17.35B | 15.45B | 16.93B | 19.47B |
| Gross Profit | 19.64B | 24.77B | 12.94B | 11.46B | 13.30B | 16.18B |
| EBITDA | 21.52B | 22.82B | 22.15B | 20.87B | 15.48B | 16.34B |
| Net Income | 15.44B | 17.75B | 13.05B | 11.86B | 10.08B | 12.54B |
Balance Sheet | ||||||
| Total Assets | 424.87B | 580.77B | 381.63B | 341.18B | 406.05B | 399.30B |
| Cash, Cash Equivalents and Short-Term Investments | 282.46B | 318.26B | 230.91B | 224.70B | 276.39B | 342.33B |
| Total Debt | 1.27B | 1.89B | 1.75B | 1.60B | 2.24B | 2.48B |
| Total Liabilities | 367.42B | 522.05B | 327.22B | 289.38B | 355.95B | 349.39B |
| Stockholders Equity | 56.91B | 58.15B | 53.85B | 51.34B | 49.73B | 49.63B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 20.96B | 11.17B | 10.11B | 13.67B | 11.27B |
| Operating Cash Flow | 0.00 | 22.70B | 12.77B | 11.50B | 14.96B | 12.34B |
| Investing Cash Flow | 0.00 | -7.74B | 3.19B | -6.29B | -1.70B | 2.28B |
| Financing Cash Flow | 0.00 | -14.59B | -11.26B | -11.25B | -10.37B | -12.67B |
Hong Kong Exchanges & Clearing Technical Analysis
Negative
396.00
Price Trends
406.62
Negative
408.46
Negative
415.28
Negative
Market Momentum
-4.08
Negative
48.03
Neutral
64.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0388, the sentiment is Negative. The current price of 396 is below the 20-day moving average (MA) of 398.35, below the 50-day MA of 406.62, and below the 200-day MA of 415.28, indicating a bearish trend. The MACD of -4.08 indicates Negative momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 64.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0388.
Hong Kong Exchanges & Clearing Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$501.11B | 29.02 | 32.11% | 2.66% | 35.41% | 29.82% | |
68 Neutral | HK$139.68B | 10.56 | 8.83% | 0.97% | 64.00% | 112.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | HK$415.77B | 12.45 | 10.28% | 2.05% | 62.72% | 29.18% | |
58 Neutral | HK$310.83B | 8.69 | 8.71% | 2.75% | 52.67% | 121.43% | |
57 Neutral | HK$171.60B | 9.77 | 8.46% | 2.92% | 10.82% | 55.25% | |
53 Neutral | HK$168.88B | 9.66 | 10.70% | 2.80% | 36.57% | 77.14% |
* Financial Sector Average
HK:0388
Hong Kong Exchanges & Clearing
396.00
105.96
36.53%
HK:6030
CITIC Securities Co
24.26
7.48
44.56%
HK:3908
China International Capital
17.22
5.13
42.38%
HK:6886
Huatai Securities Co
14.95
4.92
49.01%
HK:6066
CSC Financial Co., Ltd. Class H
10.29
2.40
30.47%
HK:2611
Guotai Junan Securities Co., Ltd. Class H
13.65
4.06
42.34%
Hong Kong Exchanges & Clearing Corporate Events
HKEX Sets 2026 AGM, Seeks Fresh Share Buyback and Issuance Mandates
Mar 17, 2026
HKEX has called its 2026 annual general meeting for 29 April 2026 as a hybrid event at its Connect Hall in Central with parallel online access, where shareholders will receive the 2025 audited financial statements, elect directors and approve the ...
HKEX Sets April Board Meeting to Approve First-Quarter 2026 Results
Mar 13, 2026
Hong Kong Exchanges and Clearing Limited (HKEX), the operator of Hong Kong’s stock and derivatives markets, has scheduled a Board meeting for 29 April 2026 to review and approve the release of its unaudited consolidated results for the quart...
HKEX strengthens board with appointment of veteran regulator Clement Chan
Mar 8, 2026
Hong Kong Exchanges and Clearing Limited has confirmed the forthcoming appointment of veteran accountant and regulator Clement Kam Wing Chan as a non-executive director, succeeding Susan Chow on its board for a term running from the 2026 annual ge...
HKEX Announces Government-Led Board Changes and New Director Appointment
Feb 27, 2026
Hong Kong Exchanges and Clearing Limited announced changes to its board of directors following the HKSAR Government’s decisions on appointments and re-appointments. The government has re-appointed independent non-executive directors Chan Kin...
HKEX Sets 2026 Deadline for Unclaimed 2019 Dividend
Feb 27, 2026
Hong Kong Exchanges and Clearing Limited (HKEX) has reminded shareholders that, under its Articles of Association, any dividend left unclaimed for six years will be forfeited and revert to the company. This provision applies to the second interim ...
HKEX Updates Announcement Date for Second Interim Dividend of HKD 6.52 per Share
Feb 26, 2026
Hong Kong Exchanges and Clearing Limited (HKEX), the operator of Hong Kong’s securities and derivatives markets and related clearing infrastructure, underpins capital formation and trading activity in the city and offers multi-currency tradi...
HKEX Profit Jumps on Surge in Trading and Listing Activity
Feb 26, 2026
Hong Kong Exchanges and Clearing reported a sharp increase in 2025 performance, with revenue rising to HK$23.75 billion from HK$17.35 billion and net investment income edging up to HK$5.11 billion. Strong growth in trading, clearing, listing and d...
HKEX Posts Record 2025, Regains Top Global IPO Spot and Expands Product Ecosystem
Feb 26, 2026
Hong Kong Exchanges and Clearing reported record trading and financial performance for 2025, regaining its status as the world’s leading IPO venue and advancing an extensive reform and product development agenda. The group highlighted its ro...
HKEX Announces Second Interim Dividend of HK$6.52 Per Share for 2025
Feb 26, 2026
Hong Kong Exchanges and Clearing Limited has declared a second interim ordinary dividend of HK$6.52 per share for the financial year ending 31 December 2025, with payment scheduled for 25 March 2026. The dividend will be paid in Hong Kong dollars,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.