Bank of America Securities: Maintains a "buy" rating on Hong Kong Exchanges and Clearing Limited (00388), with a target price of HK$349.

Bank of America Securities has released a research report stating that it maintains a "buy" rating on Hong Kong Exchanges and Clearing Limited (00388), and has raised its profit forecast for 2024 to 2026 by 0% to 2%, mainly due to a lower cost-income ratio. The target price is HK$349. The report points out that Hong Kong Exchanges and Clearing Limited is a major beneficiary of the market recovery, and the upside risk is greater than the downside risk in the near term. The bank expects that Hong Kong Exchanges and Clearing Limited's net profit last year increased by 9% year-on-year to HK$13 billion, with a 41% year-on-year increase in net profit for the fourth quarter of last year. This is mainly due to the substantial increase in trading volumes during the period, with average daily turnover (ADT) rising from HK$91 billion in the third quarter to HK$187 billion. In addition, with Hong Kong's overall interest rates stabilizing, interest income and investment income are expected to contribute to growth in the fourth quarter and full year. The ADT for the whole of last year reached HK$132 billion, a 26% year-on-year increase; the trend of ADT this year so far and the outlook for new stocks remain strong.