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Finance

Hong Kong Exchanges & Clearing Ltd.

  • 259.40 HKD
  • -0.80
  • -0.31%
  • Hong Kong
    Apr 20, 2018
  • Ticker
    HKG(388)
  • Prev. close
    260.20
  • Market cap (HKD)
    322,598M
  • Market cap (USD)
    41,116.20M
  • Shares
    1,239.81M

Company Background

Hong Kong Exchanges & Clearing (HKEx) is a global operator of exchanges and clearing houses, one of the world's largest exchange groups by market capitalization. It operates the stock market, futures market and four clearing houses through its subsidiaries in the region. The bourse has been around 6% owned by the Hong Kong government.

The company also has expanded its commodities trading business. In 2012, it acquired the London Metal Exchange, one of the world's leading industrial metals exchanges. The LME business contributes about 20% to HKEx's overall revenue. HKEx seeks to create a commodities trading scheme with mainland China and London, aiming to promote investor convenience in the major metals market and to increase income from trading fees.

Charles Li Xiaojia became CEO of HKEx in 2010. Li is boosting the group's global competitiveness through strengthening partnerships with mainland China markets. HKEx has partnered with the Shanghai Stock Exchange and the Shenzhen Stock Exchange on the China Exchanges Services Co., which is to develop cross-border indexes based on products traded on these markets. It also opened the stock connection with Shanghai in November 2014. HKEx in June 2015 approved a new three-year term for Li, until October 2018.

Business Summary

Hong Kong Exchanges & Clearing Ltd. engages in the operation of stock and futures markets. It operates though the following segments: Cash; Equity and Financial Derivatives; Commodities; Clearing; and Platform and Infrastructure. The Cash segment covers equity products traded on the Cash Market platforms and Shanghai Stock Exchange. The Equity and Financial Derivatives segment includes derivatives products traded on Hong Kong Futures Exchange Limited and the Stock Exchange, and other related activities. The Commodities segment operates an exchange in the United Kingdom for the trading of base metals futures and options contracts. The Clearing segment provides clearing, settlement, depository, and custody and nominee services. The Platform and Infrastructure segment refers to services in connection with providing users with access to the platform and infrastructure. The company was founded on July 8, 1999 and is headquartered in Hong Kong.

Financial Highlights

Dec 2017 HKDUSD
Revenue12,443M1,596.72M
Gross Profit----
Operating income8,544M1,096.39M
Income before tax8,610M1,104.86M
Net income7,404M950.10M
EBITDA9,402M1,206.49M
Diluted EPS6.020.77
Dividends Per Share5.400.69
Total Assets317,604M40,628.34M
Total liabilities280,229M35,847.28M
Total equity37,273M4,768.01M
Operating cash flow47,741M6,126.28M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 8,490M 9,740M 12,873M 11,018M 12,443M
Gross Profit -- -- -- -- --
Operating income 5,257M 5,972M 8,755M 6,809M 8,544M
Income before tax 5,256M 6,048M 9,287M 6,808M 8,610M
Net income 4,552M 5,165M 7,956M 5,769M 7,404M
EBITDA 5,764M 6,619M 9,439M 7,580M 9,402M
Diluted EPS 3.94 4.43 6.67 4.75 6.02
Dividends Per Share 1.87 3.98 5.95 4.25 5.40
Total Assets 85,943M 251,860M 238,193M 247,318M 317,604M
Total liabilities 65,834M 230,910M 208,231M 214,934M 280,229M
Total equity 19,996M 20,864M 29,816M 32,266M 37,273M
Operating cash flow 4,927M 4,614M 8,267M 16,352M 47,741M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 1,094.54M 1,256.01M 1,660.48M 1,419.39M 1,596.72M
Gross Profit -- -- -- -- --
Operating income 677.74M 770.11M 1,129.30M 877.17M 1,096.39M
Income before tax 677.61M 779.91M 1,197.92M 877.04M 1,104.86M
Net income 586.85M 666.04M 1,026.23M 743.19M 950.10M
EBITDA 743.10M 853.54M 1,217.53M 976.49M 1,206.49M
Diluted EPS 0.50 0.57 0.86 0.61 0.77
Dividends Per Share 0.24 0.51 0.76 0.54 0.69
Total Assets 11,084.05M 32,477.74M 30,733.98M 31,899.03M 40,628.34M
Total liabilities 8,490.60M 29,776.20M 26,867.99M 27,722.15M 35,847.28M
Total equity 2,578.88M 2,690.44M 3,847.15M 4,161.66M 4,768.01M
Operating cash flow 635.19M 594.99M 1,066.35M 2,106.54M 6,126.28M

Valuation Measures

Dec 2017
PER39.76
ROA2.62%
ROE21.29%
Operating margin68.66%
Profit margin59.50%

Key executives

  • CEO & Ex-Officio Executive Director: Xiao Jia Li
  • Joint Chief Operating Officer: Kwok Keung Lee
  • Joint Chief Operating Officer & Head-Clearing: Chi Kin Tai
  • Chief Financial Officer: John F. Killian
  • Chief Technology Officer: Chung Kwong Leung

Shareholders

  • Special Administrative Region of Hong Kong (5.3%)
  • The Vanguard Group, Inc. (2.4%)
  • BlackRock Fund Advisors (1.7%)
  • Norges Bank Investment Management (1.5%)
  • State Street Global Advisors Asia Ltd. (0.9%)
  • Aberdeen Asset Managers Ltd. (0.8%)
  • Hang Seng Investment Management Ltd. (0.5%)
  • OppenheimerFunds, Inc. (0.5%)
  • J.O. Hambro Capital Management Ltd. (0.5%)
  • Vontobel Asset Management, Inc. (0.4%)

Contact Details

  • Website:http://www.hkex.com.hk
  • Address: 12th Floor, One International Finance Centre, Hong Kong, Hong Kong
  • Phone: +852.2522.1122

Related Companies

  • HKEX International Ltd.
  • HKEX (China) Ltd.
  • HKEX Property Ltd.
  • HKEX Hosting Services Ltd.
  • Ganghui Financial Information Services (Shanghai) Ltd.
  • OTC Clearing Hong Kong Ltd.
  • SEHK Options Clearing House Ltd.
  • HKFE Clearing Corp. Ltd.
  • Hong Kong Futures Exchange Ltd.
  • Stock Exchange of Hong Kong Ltd.
  • Hong Kong Securities Clearing Co. Ltd.
  • Many Profit Ltd.
  • HKSCC Nominees Ltd.

Competitors

  • Nasdaq, Inc.
  • Moscow Exchange MICEX-RTS PJSC
  • CME Group Inc. Class A
Last Updated on 20 Apr, 2018

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