Goldman Sachs: Raises Hong Kong Exchange target price to 562 Hong Kong dollars, raises earnings forecast for fiscal years 2025-2028.

Goldman Sachs released a report stating that Hong Kong Exchanges and Clearing Limited (HKEX) exceeded expectations in the third quarter profit, mainly due to better-than-expected investment income performance. Core profits met expectations, with a growth of 101% driven by a 141% increase in average daily trading volume year-on-year. After incorporating the third quarter performance and recent trends in trading volume, the bank raised its earnings per share forecast for the fiscal years 2025 to 2028 by 5%, 4%, 4%, and 5% respectively. They maintained a "buy" rating on the stock, raising the target price from HK$544 to HK$562. The bank identified three key factors that further drive the re-evaluation of HKEX valuations, including the consensus on average daily trading volume forecasts being raised, an expansion of HKEX's price-to-earnings ratio premium compared to the Hang Seng Index and the Hang Seng TECH Index, and the growth momentum of Hong Kong-listed companies.