Komo: Raise HASHKEY HLDGS (03887) target price to HK$4.2 to maintain “gain” rating

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it raised the target price of HASHKEY HLDGS (03887) to HK$4.2 to maintain the “gain” rating. The bank pointed out that HashKey's current valuation is significantly lower than the industry level, and the stock price correction in the previous period was too large. As the company's core business remained steady and the operating trend continued to improve in the second half of the year, there is plenty of potential for medium- to long-term revenue growth.

The research report points out that the implementation of HashKey's institutional infrastructure strategy has achieved remarkable results, and the trading business has shown strong resilience. In the first half of 2026, the company's total trading volume increased 32% year on year to HK$282.2 billion. Among them, institutional trading volume surged 59% year over year to HK$231.5 billion, and the share of institutional trading volume increased to 82%, indicating that the stickiness and scale of institutional customers continued to increase. Thanks to the recovery in trading activity, the Group's gross margin increased 9.6 percentage points month-on-month to 60.6%, and transaction matching gross margin also rebounded sharply to 50.1%. The adjusted loss narrowed 21% year over year to HK$315 million, outperforming the bank's previous forecast of 10%.

In terms of expenses, although affected by equity incentive bookkeeping, the company's book operating expenses increased significantly year over year, but after excluding this non-cash project, the company's actual operating expenses fell by about 4.5% year on year due to organizational optimization, process automation, and AI-assisted development initiatives.

Looking ahead to the future market, as institutional customer penetration continues to increase, diversified product line monetization capabilities improve, and plans to acquire APEX in Singapore to further expand the regulated derivatives and clearing services landscape, the bank believes that HashKey's medium- to long-term growth momentum is still strong. Furthermore, the company previously launched a HK$100 million share repurchase plan, which also sent a positive signal that management is optimistic about the long-term value of the company.