UBS: Hong Kong Stock Exchange (00388) Beats Expectations in First Quarter Results, Rated "Neutral"

UBS released a research report stating that Hong Kong Exchanges and Clearing Limited (00388) achieved a first quarter revenue of HK$8.2 billion this year, with a year-on-year and quarterly increase of 20% and 12% respectively, both exceeding the bank's and market expectations. Net profit increased by 27% year-on-year to HK$5.2 billion, outperforming the bank's and market expectations by 9.7% to 12.5%. The performance exceeded expectations, covering core business segments and net investment income. UBS expects the market to react positively to the performance, as market activity has cooled mildly in the second quarter so far, but remains resilient. They rated Hong Kong Exchanges and Clearing Limited as "Neutral" with a target price of HK$450.