Citibank: HKEx (00388)'s investment income and operating expenses performance in the first quarter exceeded expectations, rating “Buy”

The Zhitong Finance App learned that Citibank released a research report saying that the net profit of the Hong Kong Stock Exchange (00388) for the first quarter of 2025 was HK$4.1 billion, up 8% from quarter to quarter, up 37% year on year, exceeding market expectations by 5%. Total revenue of HK$6.9 billion, up 7% from quarter to quarter, up 32% year on year, exceeding market expectations by 3% due to strong investment income. Core revenue was generally in line with expectations, while investment income increased 11% quarterly, down 1% year over year, and 21% higher than market expectations. Operating expenses were HK$2 billion, down 4% from quarter to quarter, up 7% year on year, exceeding market expectations by 4%, mainly due to lower staff costs. The EBITDA margin reached 76.6%, an increase of 5 percentage points over the previous year. The bank gave it a “buy” rating on the Hong Kong Stock Exchange, with a target price of HK$385.