[ET Net News Agency, 7 November 2019] HKEX (00388) reported a net profit of HK$7.4bn in
9-month 2019, down 1%. HSBC Global Research estimated 3Q net profit declined by 5%, more
resilient compared with the 12-16% ADT (average daily turnover) declines in cash and
derivatives.
However, the research house sees limited room for ADT to further step down as implied
velocity is currently very low at 63% versus an average of 81% since 2009.
Looking ahead, HSBC thinks there are two key catalysts to support HKEX in the next
12 months, namely Alibaba's secondary listing, and MSCI A-share Index futures.
HSBC maintained its "buy" rating on HKEX with a target price of HK$285 (unchanged). It
believes HKEX, at the current valuation of 30x 2020 P/E, offers good risk/reward with
plentiful business opportunities in sight. (KL)
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00388 HKEX
Nominal 
212.600 -6.000 (-2.745%) Research Report
07/11/2019 16:03
{I-bank focus}HKEX's ADT further decline seen limited - HSBC
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