Dahua Jixian released a research report saying that upgrading the rating of Hong Kong Stock Exchange (00388) to "Buy" is more optimistic about the earnings outlook because the average daily turnover recovery is encouraging and is longer than expected.freeslots7780In the high interest rate environment of 2024, net interest income is resilient, raising the Hong Kong Stock Exchange's 2024 - 2026 earnings forecast by 6% respectivelyfreeslots7780.7%, 1.4% and 1.6%, and the target price was raised from HK$262 to HK$285.
The report said the company's first-quarter profit was 2.97 billion yuan, 6.7% higher than the bank's expectations, mainly due to better external portfolio earnings, higher London Metal Exchange transaction fees, and lower depreciation and amortization (D&A) expenses, but were partially offset by higher operating costs.