Citi has released a research report indicating that it believes the solid performance of HKEX (00388) will help boost sentiment towards the stock. The firm has set a target price of HK$495 and maintained a "Buy" rating.

In the second quarter, HKEX reported a net profit attributable to shareholders of HK$5.4 billion, representing a 4% quarter-on-quarter increase and a 21% year-on-year rise. This figure came in 13% and 7% above market consensus and the bank's own estimates, respectively.

Core revenue grew 5% quarter-on-quarter and 31% year-on-year, surpassing market expectations by 8%, driven by robust equity securities trading activity. Investment income totaled HK$1.3 billion, remaining flat quarter-on-quarter but declining 17% year-on-year, exceeding market forecasts by 23%. However, after excluding a HK$290 million gain from unlisted equity investments during the period, investment income fell 5% short of market projections.

Operating expenses increased 8% year-on-year, which was 1% higher than market expectations. An interim dividend of HK$7.43 per share was declared, maintaining a payout ratio of approximately 89%.