- Net Income: HKEX reported a net income of HK$3.16 billion for Q2, slightly below the estimate of HK$3.2 billion.
- EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q2 were HK$3.96 billion, just above the estimated HK$3.95 billion.
- Capital Expenditure in Q2: HK$334 million was spent on capital expenditure for Q2.
- Daily Trading: An average of 818,000 derivative contracts were traded daily.
- First Half Revenue & Income: HKEX reported revenue and other income totaling HK$10.62 billion for the first half of the year.
- First Half EBITDA: EBITDA for the first half of the year was HK$7.66 billion.
- First Half Net Income: Net income for the first half of the year amounted to HK$6.13 billion.
- First Half Capital Expenditure: HKEX spent HK$612 million on capital expenditure in the first half of the year.
- Interim Dividend: An interim dividend per share of HK$4.36 was declared.
- Stock Recommendations: There are 23 buy recommendations, 2 hold recommendations, and 2 sell recommendations for HKEX stock.
HKEX on Smartkarma
Analyst coverage of HKEX on Smartkarma by Daniel Tabbush reveals a bearish sentiment towards the company’s recent financial performance. In his report titled “HKEX – Revenue Down, Investment Income Down, Operating Costs Up, Will It All Reverse?”, Tabbush highlights the concerning direction of key financial indicators. He notes a significant decline in HKEX‘s top-line revenue, a decrease in investment income, and a rise in operating costs. Particularly alarming is the 22% year-over-year drop in average daily turnover, indicating a potential marginalization of the Hong Kong Exchange amid economic uncertainties and geopolitical risks.
Tabbush’s analysis underscores the challenging environment facing HKEX, with economic concerns and geopolitical uncertainties adding to the company’s financial woes. The report suggests that the current trend of declining revenue and operational challenges is not likely to reverse in the near future. Given the unfavorable macroeconomic conditions and reduced relevance of Hong Kong’s historical positioning, investors may need to exercise caution when considering investments in HKEX. Tabbush’s bearish outlook on HKEX reflects the broader pessimism surrounding the company’s outlook amidst a complex market landscape.
A look at HKEX Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Hong Kong Exchanges & Clearing Limited (HKEX) appears to have a promising long-term outlook. With a solid Growth score of 4 and a high Resilience score of 5, HKEX seems well-positioned for sustained development and able to weather market uncertainties effectively. The Momentum score of 4 indicates that the company is on a positive trajectory in terms of market performance and investor sentiment. Although the Value and Dividend scores are moderate at 2 each, the overall outlook for HKEX seems optimistic given its strong scores in Growth, Resilience, and Momentum.
As the owner and operator of the stock exchange, futures exchange, and clearing houses in Hong Kong, HKEX plays a vital role in providing trading platforms for a variety of financial products. This enables the company to facilitate the efficient processing of trades for investors. With its respectable Smartkarma Smart Scores, especially in Growth and Resilience, HKEX appears to be a company worth watching for potential long-term investment opportunities within the financial markets.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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