JP Morgan: Maintains "Overweight" Rating on HKEX (00388) with a Target Price of HKD 520.

J.P. Morgan released a research report stating that HKEX (00388) reported a net profit of 5.4 billion yuan for the second quarter, up 4% quarter-on-quarter and up 21% year-on-year, 4% higher than the bank's expectations, primarily due to increased revenue supported by a rise in transaction fees. Listing fees also maintained momentum, increasing 24% year-on-year; net investment income rose quarter-on-quarter, partly due to a one-time valuation change in non-listed equity investments; costs were in line with expectations, with operating expenses increasing 4% quarter-on-quarter; overall operating profit margin during the period remained at a high level of about 75%. The companys earnings per share were 4.26 yuan, reflecting a 4% quarter-on-quarter increase and a 21% year-on-year increase, supporting upward revisions and re-evaluations. The bank maintains an "overweight" rating for HKEX, with a target price of 520 Hong Kong dollars.