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Hong Kong Exchanges and Clearing Ltd 00388

Morningstar Rating
HKD 257.60 −6.40 (2.42%)
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Company Report

Resilient Margins For HKEx, with Early Signs of Trading Activity Bottoming Out

We expect Hong Kong Exchanges and Clearing's, or HKEx's, strategy for the foreseeable future to focus on ensuring that it can continue to serve as the gateway between China and the rest of the world. HKEx currently enjoys an extraordinarily privileged position, in that it holds an effective monopoly on facilitating the movement of capital between the world’s second-largest economy and the rest of the world. Maintaining this position requires a balance between access to China while maintaining a degree of autonomy. However, China has steadily increased its influence over Hong Kong in recent years and Hong Kong has seen an outflow of some people, businesses, and capital. Counteracting this headwind has been HKEx’s increased expansion of the Connect program with the Shanghai Stock Exchange and Shenzhen Stock Exchange, which is creating financial highways between Hong Kong and China.

Price vs Fair Value

00388 is trading at a 834% premium.
Price
HKD 257.60
Fair Value
HKD 339.00
Uncertainty
High
1-Star Price
HKD 365.00
5-Star Price
HKD 912.00
Economic Moat
Szr
Capital Allocation
Wgldlvz

Bulls Say, Bears Say

Bulls

HKEx enjoys an extraordinarily privileged position, whereby it holds an effective monopoly on facilitating the movement of capital between the world’s second-largest economy and the rest of the world.

Bears

HKEx’s fate is strongly linked to China’s economy, which is facing demographic and debt issues, not too dissimilar from Japan in the 1990s.

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News

Trading Information

Previous Close Price
HKD 264.00
Day Range
HKD 257.00262.20
52-Week Range
HKD 212.20336.00
Bid/Ask
HKD 257.40 / HKD 257.60
Market Cap
HKD 326.59 Bil
Volume/Avg
6.5 Mil / 6.6 Mil

Key Statistics

Price/Earnings (Normalized)
26.97
Price/Sales
21.39
Dividend Yield (Trailing)
3.26%
Dividend Yield (Forward)
3.04%
Total Yield
3.26%

Company Profile

Hong Kong Exchanges and Clearing is a vertically integrated securities exchange business offering listing, data, trading, clearing and settlement services across equities, debt and derivatives. HKEx, like Hong Kong itself, functions as a gateway between China and the rest of the world. HKEx serves as a preferred listing venue for Chinese companies outside of China and, through the Connect Scheme, offers two-way trading for a growing group of financial products with the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
Sector
Financial Services
Industry
Financial Data & Stock Exchanges
Stock Style Box
Large Core
Total Number of Employees
2,552

Competitors

Valuation

Metric
00388
ASX
S68
Price/Earnings (Normalized)
26.9717.0219.41
Price/Book Value
6.242.996.07
Price/Sales
21.3910.658.68
Price/Cash Flow
28.6616.16
Price/Earnings
00388
ASX
S68

Financial Strength

Metric
00388
ASX
S68
Quick Ratio
0.901.101.33
Current Ratio
1.101.111.33
Interest Coverage
1.411.4092.95
Quick Ratio
00388
ASX
S68

Profitability

Metric
00388
ASX
S68
Return on Assets (Normalized)
3.30%2.96%14.01%
Return on Equity (Normalized)
23.65%12.95%32.23%
Return on Invested Capital (Normalized)
14.91%11.17%20.93%
Return on Assets
00388
ASX
S68
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