Huoxing Finance reports that on September 3, J.P. Morgan released a new research report, maintaining its “Overweight” rating on licensed digital asset group HashKey and raising its target price to HK$4.20, implying approximately 60% upside from the current price of HK$2.62. J.P. Morgan noted in the report that HashKey’s current valuation is significantly below industry levels, with prior share price corrections being excessive. As the company’s core businesses remain stable in the second half of the year and operational conditions continue to improve, its medium- to long-term revenue growth potential remains strong. The report highlighted that HashKey’s institutional infrastructure strategy has delivered significant results, with its trading business demonstrating strong resilience. In the first half of 2026, the company’s total trading volume increased by 32% year-over-year to HK$282.2 billion, with institutional trading volume surging 59% year-over-year to HK$231.5 billion. Institutional trading volume now accounts for 82% of total volume, reflecting growing client retention and scale among institutional customers. Benefiting from a rebound in trading activity, the group’s gross margin rose 9.6 percentage points quarter-over-quarter to 60.6%, while the trading matching gross margin recovered sharply to 50.1%. Adjusted losses narrowed by 21% year-over-year to HK$315 million, outperforming J.P. Morgan’s previous expectations by 10%. Regarding expenses, although reported operating expenses rose year-over-year due to share-based compensation accounting, excluding this non-cash item, actual operating expenses declined by approximately 4.5% year-over-year thanks to organizational optimization, process automation, and AI-assisted development initiatives—demonstrating clear improvements in efficiency and quality. For business segments under near-term pressure, such as on-chain services, J.P. Morgan emphasized that the market has overreacted. HashKey currently trades at a forward 2027 price-to-sales ratio of just 4.9x, significantly below the industry average of 8.1x for major global listed peers, indicating substantial valuation discount potential. Looking ahead, as institutional client penetration continues to rise, revenue generation from diversified product lines improves, and the planned acquisition of Singapore-based APEX expands its regulated derivatives and clearing services footprint, HashKey’s medium- to long-term growth momentum remains robust. Additionally, the company’s previously announced HK$100 million share repurchase program signals management’s confidence in the company’s long-term value.
J.P. Morgan raises HashKey target price to HK$4.20, maintains overweight rating
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Summary
On September 3, 2026, J.P. Morgan raised HashKey’s target price to HK$4.20, maintaining its 'Overweight' rating. The firm highlighted improved trading volume and stronger business performance in H2 2026. Total trading volume increased 32% to HK$282.2 billion, with institutional trading rising 59% to HK$231.5 billion. Altcoins to watch may include HashKey as it gains momentum. Gross margin reached 60.6%, and adjusted losses declined 21% to HK$315 million. Cost reductions, institutional expansion, and the APEX acquisition support long-term growth.
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