Singapore Exchange - DBS Research 2023-08-18: Awaiting Rebound In Equities Trading

• Singapore Exchange (SGX) reported FY23 adjusted net profit (excluding certain non-cash and non-recurring items) of S$503.2m (+10.3% y-o-y), ~5% above expectations.
• Meanwhile, headline net profit of 570.9m (+26.5% y-o-y) came in ~18% above consensus estimate, mainly driven by higher net non-cash gains, partially offset by impairment losses on non-financial assets, finance charges and net foreign exchange losses (see notes at the end).
• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -
• S$23.3m writeback of forward liability to acquire remaining 7% stake in Scientific Beta due to its performance decline, resulting in a lower cost than initially expected to acquire Scientific Beta.
• S$14.9m writeback of earn-out contingent consideration for MaxxTrader.
• S$10.0m recognition of investment in Climate Impact X (CIX).
• This was partially offset by impairment losses on non-financial assets, including
  1. a S$8.3m impairment loss on Scientific Beta’s technical know-how and customer relationships (in any case, S$6-7m has been amortised every year);
  2. a S$3.1m impairment loss on investment property in the UK; and
  3. a S$0.2m impairment loss on investment in joint venture.

Dividend policy.

• Read more at SGinvestors.io.

Rui Wen LIM DBS Group Research | Tabitha FOO DBS Research | https://www.dbs.com/insightsdirect/ 2023-08-18 SGinvestors.io

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