Hong Kong Exchanges and Clearing Limited (HKXCY) Stock

About Hong Kong Exchanges and Clearing Limited

Hong Kong Exchanges and Clearing Limited (HKEX), through its various subsidiary companies, is a key global player in the financial markets. It is responsible for owning and managing stock and futures exchanges, alongside their associated clearing houses, across Hong Kong, Mainland China, and the United Kingdom. The company's operations are divided into five principal areas: Cash, Equity and Financial Derivatives, Commodities, Post Trade, and Technology. The Cash division manages a wide selection of equity products traded on the cash market platforms of The Stock Exchange of Hong Kong Limited, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange. This segment also generates revenue from selling market-related data and other complementary activities. The Equity and Financial Derivatives segment is dedicated to developing and maintaining robust trading platforms for a diverse range of equity and financial derivative instruments. These include items such as stock and equity index futures and options, derivative warrants, and callable bull/bear contracts. It also sells relevant market data. In the Commodities sector, HKEX oversees an exchange in the United Kingdom for trading futures and options contracts involving base, ferrous, and precious metals. Additionally, it operates the Qianhai Mercantile Exchange Co., Ltd., a significant commodity trading venue in Mainland China, and handles other commodity contracts traded on its Futures Exchange. The Post Trade segment operates crucial clearing houses that provide vital services including clearing, settlement, depository, custodianship, and nominee functions, ensuring the integrity of transactions. Finally, the Technology segment offers various services designed to provide users with efficient access to the company's sophisticated trading platforms and underlying infrastructure. Serving both companies that issue securities and a broad base of investors, Hong Kong Exchanges and Clearing Limited maintains its corporate headquarters in Central, Hong Kong.

Hong Kong Exchanges and Clearing Limited is headquartered in HK.

Hong Kong Exchanges and Clearing Limited (HKXCY) stock trades at $48.51 with a market capitalization of $61.32B. The stock is valued at a price-to-earnings (P/E) ratio of 24.22, price-to-book of 7.92, price-to-sales of 15.07. Over the past 52 weeks the stock has ranged between $45.74 and $58.61, and currently trades 17.2% below its 52-week high. It pays a dividend yielding 3.90%.

On profitability, Hong Kong Exchanges and Clearing Limited generates a return on equity (ROE) of 34.73% — well above the market average, a sign of a high-quality business, return on capital employed of 4.13%, an operating margin of 74.86%, a net profit margin of 62.30%.

In its most recent fiscal year, Hong Kong Exchanges and Clearing Limited reported annual revenue of $29.1B, net profit of $17.7B, revenue has compounded at 8.8% a year over the last five years, profit at 9.0% a year. Profit growing faster than revenue points to expanding margins.

The balance sheet shows a debt-to-equity ratio of 0.02 — a conservative balance sheet with little leverage risk, a current ratio of 1261.13, total assets of $580.7B, $182.7B in cash and equivalents.

HKXCY has an average daily trading volume of 163,191 shares, a beta of 0.93.

Official website: www.hkex.com.hk