Shan Wan Hongyuan: Maintaining a "Buy" rating for Hong Kong Stock Exchange (00388.HK) with high ADT levels of spot stocks in 3Q25 continuing to increase compared to the same period last year.

Zhitong Finance and Economics APP learned that Shenwan Hongyuan released a research report stating that it has raised profit forecasts for Hong Kong Stock Exchange (00388.HK) and maintains a buy rating. During the reporting period, the trading volume of the Hong Kong stock market was impressive, and it is expected that with more high-quality Chinese assets flowing back to the Hong Kong stock market and the extension of connectivity between mainland China and Hong Kong to the IPO level, the trading activity in the Hong Kong stock market will remain sustainable. Therefore, the firm has raised assumptions for the average daily turnover and number of IPOs in the Hong Kong Stock Exchange, leading to an increase in profit forecasts for the Hong Kong Stock Exchange. It is expected that the net profit for 2025-2027 will be HK$17.73 billion, HK$19.76 billion, and HK$20.76 billion, respectively (compared to the original forecast of HK$16.93 billion, HK$17.94 billion, and HK$18.78 billion). Year-on-year growth rates are +36%, +11%, and +5%, respectively. The buy rating is maintained.