Dahua Jixian: Maintains a "buy" rating for The Stock Exchange of Hong Kong (00388) with a target price of 352 Hong Kong dollars.

Dahua Jixian released a research report, maintaining a "buy" rating for Hong Kong Exchanges and Clearing (00388) with a target price of HK$352. Due to strong average daily trading volume and stable investment income, the bank expects Hong Kong Exchanges and Clearing's net profit in the fourth quarter of last year to increase by 43.2% year-on-year. The current valuation may not fully reflect the high level of daily average trading volume. Dahua Jixian stated that under the concerns of US tariffs and the slowdown in interest rate cuts, lowering the stock's minimum price and the recovery of the IPO market can provide additional upside potential for the growth of daily average trading volume. The bank modestly adjusted its overall daily average trading volume forecast for Hong Kong Exchanges and Clearing in 2025 and 2026 from HK$134 billion and HK$144 billion to HK$137 billion and HK$153 billion, respectively, and increased its profit forecast for 2025 and 2026 by 3.6% and 3.9%, respectively.