- Hong Kong Exchanges and Clearing Limited (HKEX) reported third-quarter revenue and other income at HK$5.37 billion, which is very close to the estimated figure of HK$5.4 billion.
- The third-quarter Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was recorded at HK$3.93 billion.
- HKEX‘s capital expenditure for the third quarter was HK$415 million.
- For the nine-month period, HKEX‘s revenue and other income totalled HK$15.99 billion.
- During the same nine-month period, HKEX reported an EBITDA of HK$11.59 billion.
- Analyst recommendations include 22 buys, 4 holds, and 2 sells on HKEX.
HKEX on Smartkarma
Analyst coverage on Smartkarma reveals contrasting sentiments towards HKEX. Travis Lundy‘s bullish report, “HK Connect SOUTHBOUND Flows,” focuses on positive Southbound Connect flows for Alibaba but negative trends for other tech giants. Despite net selling of US$2bn excluding Alibaba, the spotlight was on China’s impactful market stimulus, driving stock surges of 15-20% in just four days. Lundy suggests careful scrutiny to discern real money movements amidst the hype.
On the bearish side, Steven Holden and Daniel Tabbush paint a gloomier picture for HKEX. Holden’s report notes a wave of position closures by major funds, leading to a significant exodus from the stock. Tabbush highlights a concerning financial downturn for HKEX, with revenue and investment income declining while operating costs surge. With economic worries looming and daily turnover plummeting by 22% YoY, Tabbush emphasizes the risk HKEX faces amidst geopolitical uncertainties and China’s economic challenges.
A look at HKEX Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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 Smartkarma Smart Scores, Hong Kong Exchanges & Clearing Limited (HKEX) demonstrates a positive long-term outlook. With high scores in Resilience and Momentum, HKEX is positioned as a robust and dynamic player in the market. This indicates the company’s ability to withstand challenges and maintain a strong performance over time. Furthermore, the Growth score suggests promising potential for expansion and development, showcasing HKEX‘s capacity for sustainable growth in the future.
Despite moderate scores in Value and Dividend factors, HKEX‘s overall outlook remains favorable, with a solid foundation for growth and a demonstrated resilience in the face of market fluctuations based on the Smart Scores assessment. As the owner and operator of key financial exchanges in Hong Kong, HKEX plays a critical role in the trading of various financial products, underpinning its strategic importance in the region’s financial ecosystem.
Summary: Hong Kong Exchanges & Clearing Limited owns and operates the stock exchange, futures exchange, and their related clearing houses in Hong Kong. The Company provides the trading platforms for a range of cash and derivatives products and the facilities for processing trades.
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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