HKEX set to unveil record earnings amid stock rally in tough act to sustain for incoming CEO Aguzin
- Incoming CEO Aguzin faces the challenge of keeping shareholders happy, a hard act to follow after a 31 per cent stock gain in 2021, 68 per cent in 2020
- Sustained southbound fund inflows and a wave of giant IPOs in the city could support HKEX performance going forward, some analysts say
The city’s stock exchange operator probably earned 22 per cent more profit, at HK$11.4 billion (US$1.47 billion) in 2020 or HK$8.99 per share, according to a consensus among analysts polled by Bloomberg. This would be the highest since it went public in 2000.
A prolific flow of new stock offerings and a late surge in southbound net purchases of local equities by mainland funds have helped propel the stock to an all-time high of HK$567 on February 19. It followed a 68 per cent surge in 2020, the most in 13 years, turning the company into the world’s most valuable exchange operator.
“If southbound trading continues to grow at a big volume of HK$300 billion, the stock price will rise no matter who serves as the CEO,” said Chi-man Wong, head of research at China Galaxy International Securities. He is “moderately” positive if Aguzin gets the nod.