Hong Kong Exchanges and Clearing Ltd
00388: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$893.00 | Bcqg | Khqpkdvs |
Hong Kong Exchanges and Clearing Earnings: Resiliency From Diversified Business Exposure
We maintain our HKD 300 fair value estimate for wide-moat Hong Kong Exchanges and Clearing, or HKEx, following its third-quarter results. During the quarter, ongoing concerns about economic growth in China saw the Hang Seng Index continue its downward trajectory and underperformance compared with other major stock markets, thereby hitting HKEx’s trading-related businesses. However, HKEx delivered a 30% increase in net profit after tax compared with the previous corresponding period on the back of strong net investment income.