Goldman Sachs issued a research report stating that HKEX (00388) reported first-quarter earnings per share of HK$4.1, representing year-on-year and quarter-on-quarter increases of 27% and 20%, respectively. This performance exceeded the firm's and market consensus estimates by 11%, leading to an anticipated positive reaction in the stock price. The stronger-than-expected results were primarily driven by robust cash trading fees, as well as strong custody and services revenue, supplemented by higher listing fee income and increased investment gains from the derivatives and commodities division. Goldman Sachs maintained its "Buy" rating on HKEX with a target price of HK$528.
During the period, HKEX's total revenue, excluding investment income, grew 25% year-on-year, with both trading and non-trading segments performing strongly. Average daily turnover in the cash market and LME daily trading volume increased by 14% and 26% year-on-year, respectively. Listing fees and custody revenue also recorded significant growth, rising 34% and 47% year-on-year. Operating expenses remained flat compared to the previous year, but increased by 9% after adjusting for one-off impacts, mainly due to higher staff costs being offset by a reduction in non-staff expenses.
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