[ET Net News Agency, 26 February 2021] Daiwa Research lifted its target price for HKEX
(00388) to HK$602 from HK$447 and maintained its "buy" rating.
The research house said HKEX's 2020 net profit confirms Daiwa's view that it has entered
into a harvesting phase in the rollout of its bold ambition and this should continue to
bode well for its earnings prospects in the coming years.
Daiwa noted that HK has become an increasingly important market for new-economy firms
and that Southbound ADT (average daily turnover) of the Stock Connect has continued to
rise. It lifted its ADT assumption for 2021-22 to HK$230bn and HK$260bn (from HK$130bn and
HK$150bn). Daiwa also upgraded its 2021-22 EPS forecasts for HKEX by 35%. (KL)