Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Equity Bottom-Up

Wide moat-rated Hong Kong Exchange and Clearing's third-quarter result was in line with our expectations. Revenue was 3.5% lower against the last quarter at HKD 2.6 billion. On a year-on-year basis, it was similar to the second-quarter result and was materially lower against a strong comparable period last year. The third quarter last year benefited from the tail-end of the spike in equity trading volume between April and June, as previously noted. Good cost control saw operating expense steady against the last quarter with net profit for the period flat also flat at HKD 1.5 billion.Our fair value is reduced by 11% to HKD 170 and we believe the upside is currently priced in. Our new fair value represents fiscal 2017 and fiscal 2018 price/earnings ratio of 33 times and 30 times respectively. The latter is in line with its historical price/earning ratios.Analyst: Michael Wu, CAIA

Wide moat-rated Hong Kong Exchange and Clearing's third-quarter result was in line with our expectations. Revenue was 3.5% lower against the last quarter at HKD 2.6 billion. On a year-on-year basis, it was similar to the second-quarter result and was materially lower against a strong comparable period last year. The third quarter last year benefited from the tail-end of the spike in equity trading volume between April and June, as previously noted. Good cost control saw operating expense steady against the last quarter with net profit for the period flat also flat at HKD 1.5 billion.Our fair value is reduced by 11% to HKD 170 and we believe the upside is currently priced in. Our new fair value represents fiscal 2017 and fiscal 2018 price/earnings ratio of 33 times and 30 times respectively. The latter is in line with its historical price/earning ratios.Analyst: Michael Wu, CAIA

Hong Kong Exchange and Clearing's 3Q In Line; Fair Value Lowered as Trading Volume Remains Soft

HKEX

Hong Kong Exchange and Clearing's 3Q In Line; Fair Value Lowered as Trading Volume Remains Soft