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Hong Kong Exchanges and Clearing (HKSE:00388) Piotroski F-Score : 5 (As of Dec. 16, 2024)


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What is Hong Kong Exchanges and Clearing Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Hong Kong Exchanges and Clearing has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Hong Kong Exchanges and Clearing's Piotroski F-Score or its related term are showing as below:

HKSE:00388' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 5

During the past 13 years, the highest Piotroski F-Score of Hong Kong Exchanges and Clearing was 7. The lowest was 2. And the median was 5.


Hong Kong Exchanges and Clearing Piotroski F-Score Historical Data

The historical data trend for Hong Kong Exchanges and Clearing's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hong Kong Exchanges and Clearing Piotroski F-Score Chart

Hong Kong Exchanges and Clearing Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 7.00 4.00 4.00 5.00

Hong Kong Exchanges and Clearing Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 5.00 - - -

Competitive Comparison of Hong Kong Exchanges and Clearing's Piotroski F-Score

For the Financial Data & Stock Exchanges subindustry, Hong Kong Exchanges and Clearing's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hong Kong Exchanges and Clearing's Piotroski F-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Hong Kong Exchanges and Clearing's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Hong Kong Exchanges and Clearing's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was HK$11,862 Mil.
Cash Flow from Operations was HK$11,500 Mil.
Revenue was HK$15,445 Mil.
Gross Profit was HK$11,461 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was (406051 + 341179) / 2 = HK$373615 Mil.
Total Assets at the begining of this year (Dec22) was HK$406,051 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1,334 Mil.
Total Current Assets was HK$316,202 Mil.
Total Current Liabilities was HK$286,511 Mil.
Net Income was HK$10,078 Mil.

Revenue was HK$16,934 Mil.
Gross Profit was HK$13,298 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was (399304 + 406051) / 2 = HK$402677.5 Mil.
Total Assets at the begining of last year (Dec21) was HK$399,304 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1,448 Mil.
Total Current Assets was HK$382,478 Mil.
Total Current Liabilities was HK$352,948 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Hong Kong Exchanges and Clearing's current Net Income (TTM) was 11,862. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Hong Kong Exchanges and Clearing's current Cash Flow from Operations (TTM) was 11,500. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=11862/406051
=0.02921308

ROA (Last Year)=Net Income/Total Assets (Dec21)
=10078/399304
=0.02523892

Hong Kong Exchanges and Clearing's return on assets of this year was 0.02921308. Hong Kong Exchanges and Clearing's return on assets of last year was 0.02523892. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Hong Kong Exchanges and Clearing's current Net Income (TTM) was 11,862. Hong Kong Exchanges and Clearing's current Cash Flow from Operations (TTM) was 11,500. ==> 11,500 <= 11,862 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=1334/373615
=0.00357052

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=1448/402677.5
=0.00359593

Hong Kong Exchanges and Clearing's gearing of this year was 0.00357052. Hong Kong Exchanges and Clearing's gearing of last year was 0.00359593. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=316202/286511
=1.10362953

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=382478/352948
=1.08366672

Hong Kong Exchanges and Clearing's current ratio of this year was 1.10362953. Hong Kong Exchanges and Clearing's current ratio of last year was 1.08366672. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Hong Kong Exchanges and Clearing's number of shares in issue this year was 1267.809. Hong Kong Exchanges and Clearing's number of shares in issue last year was 1267.724. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=11461/15445
=0.74205244

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=13298/16934
=0.78528404

Hong Kong Exchanges and Clearing's gross margin of this year was 0.74205244. Hong Kong Exchanges and Clearing's gross margin of last year was 0.78528404. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=15445/406051
=0.03803709

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=16934/399304
=0.04240879

Hong Kong Exchanges and Clearing's asset turnover of this year was 0.03803709. Hong Kong Exchanges and Clearing's asset turnover of last year was 0.04240879. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+1+0+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Hong Kong Exchanges and Clearing has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Hong Kong Exchanges and Clearing  (HKSE:00388) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Hong Kong Exchanges and Clearing Piotroski F-Score Related Terms

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Hong Kong Exchanges and Clearing Business Description

Traded in Other Exchanges
Address
8 Connaught Place, 8th Floor, Two Exchange Square, Central, Hong Kong, HKG
Hong Kong Exchanges and Clearing is a vertically integrated securities exchange business offering listing, data, trading, clearing and settlement services across equities, debt and derivatives. HKEx, like Hong Kong itself, functions as a gateway between China and the rest of the world. HKEx serves as a preferred listing venue for Chinese companies outside of China and, through the Connect Scheme, offers two-way trading for a growing group of financial products with the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
Executives
Jpmorgan Chase & Co.

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