Singapore Exchange (SGX)'s 1HFY23 (Jul-Dec 2022) core PATMI came in a tad higher than estimates amid a lower-than-estimated increase in operating expenses. We lift FY24F-25F profit by 2% each.
We maintain that the short-term outlook for cash equities remains weak amid an uncertain macroeconomic outlook. Low market valuations could further delay new listings.
- Read this at SGinvestors.io -
SGX 1HFY23 earnings review.
See SGX's announcement dated 09 Feb 2023 – SGX's 1HFY23 operating numbers and revenue are tracking our estimates. Revenue at S$571m was up ~10% y-o-y. Growth was driven by an increase in derivatives trading and clearing revenue, and treasury income. This more than compensated for the decrease in revenue from weaker capital-raising and cash equity businesses.
- Read this at SGinvestors.io -
SGX reported an EBITDA of S$334m (+ ~9% y-o-y) and core net profit of S$237m (+ ~7% y-o-y). It declared an interim quarterly dividend of S$0.08, bringing total 1HFY23 dividends to S$0.16/share (unchanged).
Barring additional M&A, there is scope for higher dividends.
Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
