HKEX's 2Q Earnings Likely to Lift Stock

Dow Jones
08/19

0602 GMT - Hong Kong Exchanges & Clearing's 2Q results could lift the stock, Citi Research analyst Michael Zhang says in a note. 2Q profit and core revenue beat consensus estimates thanks to strong equities turnover, while HKEX's interim dividend of HK$7.43 represents a stable payout ratio of 89%, Zhang says. Strong equities revenue was driven by Hong Kong and northbound turnover growth, with the stock connect revenue accounting for 23% of core revenue, Zhang adds. Citi currently has a buy rating with a target price of HK$495. If the IPO market slows or trading volumes ease with weaker market sentiment, the target price risks being lowered, Zhang says.

 

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