HKEX: 1H26 preview: expect bottom line growth at 21%, driven by turnover

Research evidence excerpt

HKEX: 1H26 preview: expect bottom line growth at 21%, driven by turnover

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HKEX

1H26 preview: expect bottom line growth

at 21%, driven by turnover

Reiterate Rating: BUY | PO: 500.00 HKD | Price: 375.60 HKD

Another solid quarter driven by turnover 07 July 2026

HKEX will report its 1H26 results in mid-Aug. We expect its 1H26 net profit to be Equity

HKD10.3bn, up 21% YoY. The average daily turnover was at a record high of HKD289bn

in 2Q26, vs HKD277bn in 1Q26 and HKD238bn in 2Q25, leading to strong trading fee

Key Changesincome and settlement fee income in 2Q/1H26. The only QoQ decline in 2Q26 could be

HKEX’s interest income, which was impacted by lower interest-earning assets, but we (HK$) Previous Current

think the impact could be partially offset by higher HIBOR. Price Obj. 520.00 500.00

2027E EPS 15.53 15.29

Total IPO and non-IPO fund raising size amounted to HKD210mn and HKD136mn 2028E EPS 18.03 16.25

respectively in 1H26, vs HKD107mn and HKD174mn in 1H25. The overall IPO pipeline

remains strong, but the lack of large and impactful deals could lead to some concerns on Michael Li >>

future turnover increase and near-term liquidity. Another concern about the lack of IPOs Research Analyst

Merrill Lynch (Hong Kong)

of leading AI hardware companies is also growing, especially when Shanghai and m.li@bofa.com

Shenzhen markets are embracing multiple key tech IPOs. Susie Liu, CFA >>

Research Analyst

We cut our 2027-28E earnings by 2-10% due to lower interest income assumptions. We Merrill Lynch (Hong Kong)

+852 3508 8456

also cut our PO by 4% to HKD500 based on our P/B ROE valuation methodology, susie.liu@bofa.com

representing 33x 2026E P/E. Reiterate Buy as we believe the current valuation at 25x Winnie Wu >>

2026E P/E is undemanding.