CISI Financial has released a research report maintaining its Buy rating on HKEX (00388) and recommending investors pay attention. In the first three quarters of 2026, the company's revenue and other income reached HK$24.569 billion, up 12.4% year-on-year; profit attributable to shareholders was HK$15.427 billion, up 15.0% year-on-year, both setting record highs for any nine-month period in history.
The main points from CISI Financial (06058) are as follows:
Cumulative results for the first three quarters of 2026 hit new highs, while third-quarter standalone earnings momentum slowed at the margin
Revenue and other income: In the first three quarters of 2026, the company's revenue and other income reached HK$24.569 billion, up 12.4% year-on-year; profit attributable to shareholders was HK$15.427 billion, up 15.0% year-on-year, both setting record highs for any nine-month period. During the same period, EBITDA was HK$19.610 billion, up 14.3% year-on-year; the EBITDA margin was 80%, up 1 percentage point year-on-year. In the third quarter of 2026, the company's revenue and other income was HK$7.867 billion, up 1.2% year-on-year and down 7.4% quarter-on-quarter; revenue from main business was HK$7.467 billion, down 0.2% year-on-year and down 4.1% quarter-on-quarter; profit attributable to shareholders was HK$4.859 billion, down 0.8% year-on-year and down 9.7% quarter-on-quarter. The EBITDA margin was 79%, down 2 percentage points both year-on-year and quarter-on-quarter. In the third quarter of 2026, group revenue increased by HK$92 million year-on-year, during which revenue from the company's main business decreased by HK$17 million year-on-year, while net investment income from corporate funds increased by HK$99 million year-on-year. From the second quarter to the third quarter of 2026, group revenue decreased by HK$632 million quarter-on-quarter, of which main business revenue decreased by HK$322 million and corporate fund investment income decreased by HK$289 million.
Expenses and earnings quality: In the third quarter of 2026, the company's operating expenses were HK$1.600 billion, up 8.1% year-on-year. Among these, employee expenses increased by HK$76 million year-on-year and information technology expenses increased by HK$23 million year-on-year, with the two together accounting for approximately 83% of the HK$120 million year-on-year increase in operating expenses. Group EBITDA edged down 0.4% year-on-year. In the first three quarters of 2026, net investment income from margin and clearing house funds was HK$2.104 billion, down 19% year-on-year, mainly dragged by higher rebates to clearing participants; corporate fund investment income rose 11% year-on-year.
Trading divergence: Shanghai-Hong Kong-Shenzhen Connect northbound and LME performed strongly
Cash market: In the third quarter of 2026, the overall average daily turnover (ADT) of HKEX was HK$254.2 billion, down 11% year-on-year and down 12% quarter-on-quarter; southbound Stock Connect ADT fell 30% year-on-year, significantly weaker than northbound Shanghai-Shenzhen Stock Connect ADT, which rose 15% year-on-year. IPOs and refinancing: In the first nine months of 2026, HKEX IPO fundraising amounted to HK$388.4 billion, ranking second globally; in the third quarter of 2026, fundraising was HK$176.0 billion, higher than HK$102.0 billion in the second quarter. In the first nine months of 2026, post-listing refinancing totaled HK$572.8 billion, up 25% year-on-year. In the first three quarters of 2026, listing fees in the cash segment rose 35% year-on-year to HK$901 million.
Derivatives and LME: Revenue in the commodities segment rose 28% year-on-year in the first three quarters of 2026, while LME chargeable average daily volume (ADV) rose 16% year-on-year, alongside an increase in trading and clearing fees in early 2026. However, the segment's 56% year-on-year EBITDA growth was not entirely sustainable operating leverage: the same period of 2025 included a HK$90 million FCA fine, while in the first three quarters of 2026 the company received HK$24 million in related insurance compensation. Revenue in the data and connectivity segment rose 10% year-on-year, with network fees up 11% year-on-year and hosting services fees up 13% year-on-year, making it less directly dependent on cash market average daily turnover.
Risk warnings
Growth in Shanghai-Hong Kong Stock Connect trading may fall short of expectations; investment income may fluctuate due to capital market volatility; other external events may reduce trading activity in the Hong Kong market.
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