Goldman Sachs: HKEX's profit last quarter far exceeded expectations, maintaining a "Buy" rating

AASTOCKS
2026.02.27 03:26

Goldman Sachs published a research report indicating that the Hong Kong Exchanges and Clearing (00388.HK) is expected to perform significantly better than the bank and market expectations in the fourth quarter of 2025, primarily driven by improved investment income and a decrease in operating expenses. Excluding investment income, earnings are still 5% higher than the bank's forecast, reflecting effective cost control.

Goldman Sachs pointed out that management emphasized the medium- to long-term development strategy during the earnings release, aiming not only to seize opportunities in China but also positioning the exchange as a hub to capture regional growth opportunities. For 2026, management expects net investment income to be affected by fluctuations in Hong Kong interbank offered rates and external portfolio redemptions, while the growth rate of operating expenses may accelerate compared to the fiscal year 2025.

The bank currently forecasts that the Hong Kong Exchanges and Clearing's earnings per share will grow by approximately 4% in 2026, with revenue excluding investment income expected to increase by 12% year-on-year, maintaining a "Buy" rating on the Hong Kong Exchanges and Clearing with a target price of HKD 546

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