HKEX(00388) 华泰证券·2024-07-19 13:02Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 356.00 [1][6][20] Core Insights - The report highlights a recovery in the spot market transaction volume, with an expected increase in trading activity leading to a rise in net profit for Q2 2024 [3][4] - The number of IPOs has increased quarter-on-quarter, indicating potential value in company allocations [1][4] - The report anticipates a decrease in investment yield due to a decline in HIBOR rates, despite an increase in margin size driven by improved market performance [3][4] Financial Projections - Revenue and other income are projected to grow from HKD 20,516 million in 2023 to HKD 21,715 million in 2024, reflecting an 11.16% increase [3] - Net profit attributable to the parent company is expected to rise from HKD 11,862 million in 2023 to HKD 12,751 million in 2024, a 7.49% increase [3] - The report provides EPS estimates of HKD 9.36 for 2023 and HKD 10.06 for 2024, with a PE ratio projected to decrease from 28.63 in 2023 to 24.00 in 2024 [3][20] Market Activity - The average daily trading volume (ADT) in the Hong Kong market is expected to increase to HKD 122 billion in Q2 2024, up from HKD 99 billion in Q1 2024, marking a 22% quarter-on-quarter increase [4][9] - The report notes that the number of IPOs in Q2 2024 has risen to 18 from 12 in Q1 2024, indicating a positive trend in market activity [4][9] Valuation Metrics - The company is currently trading at a PE ratio of 24x for 2024E, suggesting it is at the lower end of its long-term valuation range [4][20] - The report estimates a dividend yield of 3.14% for 2023, increasing to 3.75% in 2024 [3][20]