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4001-4020 of 4131
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Reported: SGX
SGX
Fair Value: S$6.20
Active efforts to grow operation.
In the past few months, we have seen a slew of announcements from SGX, be it for new products (including the listing of another Shipping Trust and more ETFs, etc) or other new initiatives.The unrelenting pace of strategic relationships includes the recent purchase of a 5% stake in Bombay Stock Exchange (BSE) and two MOUs with the Hanoi Securities Trading Center and Ho Chih Minh City Securities Trading Center. Besides the above, it has also recently lowered securities clearing fee from 0.05% to 0.04% with effect from March 2007, and we view this lowering of transaction costs as being responsive to market needs.
Maintain HOLD.
As trading momentum looks sustainable thus far in the current quarter, we have raised our FY07 earnings estimates from S$274.2m to S$314.6m. In addition, we have built in a slightly more optimistic estimate for trading activities in 2008 for both securities and derivatives, resulting in a mild increase in FY08 earnings estimate from S$235.7m to S$238.7m.With the recent re-rating for blue chips, we have upped our valuation parameter from 23x to 25x FY07/08 blended earnings. Fair value estimate for the stock has also been raised marginally from S$5.70 to S$6.20. We maintain our HOLD rating on SGX as its net yield remains attractive around 3%.
Record quarterly earnings. Singapore Exchange (SGX) delivered yet another record quarter with net earnings of S$89.1m in 3Q FY07, up 78% YoY. This brings 9-mth earnings to S$200.5m excluding S$45m write back of allowance for impairment on SGX Centre, or S$245.5m including. Not surprisingly, the buoyant equity market in the Jan-Mar period benefited both SGX's securities and derivatives revenues. While operating revenue rose 44% YoY in 3Q, operating expenses increased only 14% YoY, resulting in a 69% YoY gain in operating profit of S$101.0m. For the Securities Market, which accounted for 56% of revenue in 3Q, average daily traded value rose 62% YoY to S$1.9b. A total of 9 new IPOs came into the market during this period. For the Derivatives Market, trading volume rose 5% to 9.8m contracts in 3Q, while structured warrants saw a 64% rise in trading value to S$5.2b. Management has declared an interim dividend of S$0.02 per share on a tax-exempt one-tier basis and is payable 10 May 2007.
however, DBSV said this (today):
"Singapore Exchange (?SGX?) reported 3QFY07 results that were better than expectations. Total operating revenue grew
44% y-o-y to S$157.3m and net profit grew 78% y-o-y to S$89.1m. SGX has continued to position itself as Asia?s financial
gateway by strengthening ties with other exchanges, paving the path for collaborations. Moving forward, we expect the
derivatives market to remain strong and the average daily trading value in the equity market to remain sustainable, given
that around S$2.0bn/day was traded at the start of April 07. An interim dividend of 2.0 cents per share was declared. Given
the strong average daily trading value of S$1.9bn experienced in 3QFY07 and around S$2.0bn/day traded in April 07, we
have increased our net profit by 51%, 24% and 22% in FY07, FY08 and FY09 respectively. As the global peers are trading at
an average forward PE of 24x, we have a target price of S$6.85 based on 24x FY08PE. Maintain Hold."
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CIMB-GK Research says it has raised its rating for Singapore Exchange Ltd (SGX) to "outperform" from "underperform" and increased its target price for the stock to 8.32 sgd per share from 5.15 sgd in view of the company's results for the financial third quarter ended March.
Yesterday, SGX said its third-quarter net profit was 89.11 mln sgd, 77.8 pct more than a year before, and above CIMB-GK's estimate of 79 mln sgd. SGX said the bourse's average daily trading value in the third quarter had been 1.9 bln sgd because of the buoyancy of the market.
CIMB-GK said in a note: "With liquidity unlikely to dissipate soon, we do not think the 2 bln-sgd value traded in January-March represents a peak. As such, we have raised our average daily value traded assumptions from 1-1.2 bln sgd to 1.7-1.83 bln sgd for the next three years," . "This raises our [years to June] 2007-09 earnings per share forecasts by a hefty 26-60 pct," it said.
cyjjerry85, what results are you refering to?
Yes Singaporegal I hope you are right, I am holding quite a lot of SGX warrants bought during the dip
