Ongoing multiple rerating justified; maintain BUY with higher SGX's target price S$19.20. We revise FY26/27F earnings by ~5%, as we believe the structural changes and Singapore market inflows will continue to fuel SGX's multiple rerating.
- Read this at SGinvestors.io -
1HFY26 revenue and net profit in-line.
SGX's 1HFY26 revenue grew by 8% y-o-y and 7% h-o-h to S$736mil, driven by broad-based h-o-h growth across all segments. On an adjusted basis, expenses grew 4% y-o-y, -7% h-o-h to S$267mil, driven by higher fixed staff costs, technology investments, premises expenses, professional and other fees, transaction-based expenses, and depreciation.
Net profit came in at S$343mil, 1% y-o-y and 11% h-o-h higher. Excluding non-cash and non-recurring items, adjusted net profit was S$357mil (+12% y-o-y, +20% h-o-h). 1HFY26 saw S$15mil impairment attributable to continued underperformance of Scientific Beta.
- Read this at SGinvestors.io -
Broad-based momentum continues across asset classes.
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
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