Dahua Jixian lowered its profit growth forecast of the Hong Kong Stock Exchange for Q2 2024 to a YoY increase of 11%.
Zhongtong Finance App learned that Dahua Jixian released a research report stating that it maintains a "buy" rating on the Hong Kong Stock Exchange (00388) with a target price lowered from HKD 317 to HKD 310.
The report states that the overall daily trading volume of HKEx fell 12% MoM in June. Therefore, the bank lowered its forecast for Q2 2024's profit growth to a YoY increase of 11%. Although the upcoming lowest price limit for stocks is expected to boost overall daily trading volume in the long run, the upcoming US interest rate reduction cycle may be a key driving factor for market sentiment and trading volume in the near future.
Due to lower-than-expected revenue in June, the bank lowered its forecast for HKEx's Q2 2024 profit growth to a YoY increase of 11%, with a projected quarterly decrease of 11% in net interest income to RMB 1.2 billion and an expected quarterly decline of about 10% in net investment income to RMB 1.05 billion. Profit forecast for 2024, 2025, and 2026 was reduced by 1.7%, 2.3%, and 2.5%, respectively.