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Hong Kong Exchanges and Clearing Limited (388) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Hong Kong Exchanges and Clearing Limited

388Market cap $61BPrice $48.4

Country🇭🇰Hong Kong

SectorFinancials

IndustryCapital Markets

Operates the stock exchange where most Chinese companies raise capital and trade shares globally. Collects fees on every transaction while Chinese firms list here instead of mainland exchanges due to regulatory advantages.

In Bastion Portfolios?

52W Return-8%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+17%8

Revenue Forecast

Rev CAGR (1y)+11%6

Rev CAGR (3y)+7%5

Rev CAGR (5y)+9%7

Earnings Forecast

EPS Growth Y+1+13%7

EPS Growth Y+2+2%4

EPS Growth Y+3+6%6

Quality

Margins

EBIT Margin75%10

Net Income Margin63%10

Free Cash Flow Margin57%10

Debt

Net Debt/EBITDA-6.810

Efficiency

ROE34%9

ROA4%5

Earnings Stability77

GEAR+STRONG85

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)263

P/E Ratio (Forward 3y)222

P/BV7.92

EV Multiples

EV/EBITDA Fwd123

EV/EBIT Fwd133

Yield

Free Cash Flow Yield0.0%4

Dividend Yieldna–

Momentum

Short term

1 month return-6%4

3 month return+3%7

YTD return-4%4

Mid term

Price vs 52wHigh85%6

1 year return-12%3

Long term

3 year return+45%5

5 year return-8%3

Risk Shield

Price Risk

Beta0.85

Volatility21%9

Free Cash Flow

Free Cash Flow Margin57%10

Free Cash Flow Yield0.0%4

Quality

ROCE38%5

Earnings Stability77

Net Debt/EBITDA-6.810

02Growth

Is it actually growing, and how fast?

388Hong Kong Exchanges and Clearing

Revenue FY25$3.7B

GROWTH RATING↗

AVERAGE57 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+17%8

Revenue, next 1Y+11%6

Revenue, next 3Y, CAGR+7%5

Revenue, next 5Y, CAGR+9%7

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+13%7

EPS growth, FY27E+2%4

EPS growth, FY28E+6%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 17%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

The runway holds up: revenue is set to grow 9%/yr over five years.7/10

Earnings are set to grow in step with sales (EPS about 6%/yr vs revenue 7%/yr).

WATCH

A mid-pack grower, ahead of 57% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 17%/yr over the last 3 years; forecasts see it cooling to 7%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

388Hong Kong Exchanges and Clearing

Total return Current154%

Price return Current105%

MOMENTUM RATING↗

AVERAGE38 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return+3%7

YTD return-4%4

MID & LONG-TERM▾SCORE

% of 52-week high85%6

1-year return-12%3

3-year return+45%5

5-year return-8%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over three months (+3%).

WATCH

Average long-term results. Multi-year returns are middling (+45% over three years and -8.3% over five), roughly average for the market.

It's down 12% over the past year, now 15% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-6%) and so far this year (-4%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on HKEX. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

388Hong Kong Exchanges and Clearing

Revenue FY25$3.7B

GROWTH RATING↗

AVERAGE57 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+17%8

Revenue, next 1Y+11%6

Revenue, next 3Y, CAGR+7%5

Revenue, next 5Y, CAGR+9%7

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+13%7

EPS growth, FY27E+2%4

EPS growth, FY28E+6%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 17%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

The runway holds up: revenue is set to grow 9%/yr over five years.7/10

Earnings are set to grow in step with sales (EPS about 6%/yr vs revenue 7%/yr).

WATCH

A mid-pack grower, ahead of 57% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 17%/yr over the last 3 years; forecasts see it cooling to 7%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

388Hong Kong Exchanges and Clearing

Total return Current154%

Price return Current105%

MOMENTUM RATING↗

AVERAGE38 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return+3%7

YTD return-4%4

MID & LONG-TERM▾SCORE

% of 52-week high85%6

1-year return-12%3

3-year return+45%5

5-year return-8%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over three months (+3%).

WATCH

Average long-term results. Multi-year returns are middling (+45% over three years and -8.3% over five), roughly average for the market.

It's down 12% over the past year, now 15% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-6%) and so far this year (-4%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on HKEX. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community