CICC predicts that the Hong Kong Stock Exchange's main fee income in the second quarter will increase by 9% year-on-year and quarter-on-quarter, raising its profit forecast for this year by 3% to 12.6 billion yuan and 2% to 13.6 billion yuan next year.
According to the report released by Zhongtong Finance APP, CICC maintained its 'outperform' rating for the Hong Kong Stock Exchange (00388), predicting that the internal investment returns will be stable, while outsourced investments may drag down the overall investment income. The investment income in the second quarter is expected to increase by 6% year-on-year and decrease by 10% quarter-on-quarter to HKD 1.21 billion, with a target price of HKD 310.
According to the report, the company expects a year-on-year increase of 7% in profits for the second quarter of this year, with a quarterly increase of 5% to 3.11 billion yuan. It is expected that the total revenue for the first half of the year will be basically flat year-on-year at HKD 10.61 billion, with a year-on-year decline of 4% to 6.08 billion yuan in profit. Due to the significant increase in spot, derivative, and commodity trading activity, CICC predicts that the Hong Kong Stock Exchange's main fee income in the second quarter will increase by 9% year-on-year and quarter-on-quarter, raising its profit forecast for this year by 3% to 12.6 billion yuan and 2% to 13.6 billion yuan next year.