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M Stanley Expects HKEX to Earn 2% Less Last Qtr; Outlook Still Positive
2026-02-12 16:02:57
Morgan Stanley released a report predicting that HKEX (00388.HK) will report a decline in revenue and earnings for 4Q25, compared to the historical peak in 3Q25.

Market activity was relatively active in January this year, which Morgan Stanley believes will push up this year's trend. The broker also anticipates a favorable pattern will emerge in 2H26, benefiting from active market activity and clearer signs of easing PPI pressure.

Morgan Stanley estimates HKEX's 4Q25 earnings to decrease by 2% YoY, reflecting the impact of cost stickiness (up 7% YoY) and an increase in tax rates due to minimum tax rate requirements. The broker has given HKEX an Overweight rating and a target price of HKD508.
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