Singapore Exchange - RHB Research 2025-01-14: Marking To Market 1HFY25 Operating Data

• Singapore Exchange (SGX:S68)'s 1HFY25 securities turnover and derivatives trading volume were below estimates amidst a soft Dec 2024. Nevertheless, on a y-o-y basis, Singapore Exchange booked strong growth in 1HFY25 operating metrics, which we assess should translate into ~15% PATMI growth during the same period.
• - Read this at SGinvestors.io -
• We see limited rerating catalysts, as SGX's share price is already trading near to its historical average forward P/E.

Dec 2024 data came in softer than expected.

• - Read this at SGinvestors.io -
• SGX noted that retail participation in the cash market was at a 2-year high.
• Global policy actions like the US Federal Funds Rate cut and introduction of new policy measures by China kept investors interested in derivative products, with Dec 2024 derivatives volume of 23.2m contracts and derivatives daily average volume (DDAV) of 1.14m contracts increasing 10% and 4% y-o-y. However, on a m-o-m basis, both securities turnover and derivatives volume were down, losing momentum from the strong Nov 2024 data.
• The reported 1HFY25 securities turnover and derivatives volume came in 2% below our estimates.

Strong earnings growth for 1HFY25.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2025-01-14 SGinvestors.io

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