SINGAPORE EXCHANGE LIMITED
SGX
S68.SI
SGX - FY16 Results Review Flash Note
- FY16 net profit of SGD349m was unchanged from the previous year. Excluding a one-time impairment charge of SGD6m for SGX’s investment in Bombay Stock Exchange, net profit would be slightly ahead of our SGD352m forecast.
- FY16 securities average daily value (SADV) of SGD1.10bn was marginally higher than FY15’s SGD1.09bn, although 4QFY16 recorded a 16% YoY decline.
- FY16 derivatives average daily contract (DADC) of 732k is up 14% YoY. Derivatives now account for 40% of total revenue. Revenue rise from derivatives volume increase was partially offset by revision in pricing and incentives for Iron Ore contracts introduced due to competition.
- Final dividend of 13 cents per share declared, giving a FY16 dividend of 28 cents, unchanged from a year earlier.
Other takeaways
- FY16 cost to income ratio was up 2 ppt to 50%.
- No further updates on Baltic Exchange.
- We maintain our FY17 SADV and DADC assumption of SGD1.27bn and 782k respectively.
- We forecast FY17 net profit growth of 9%, on volume growth.
- No change to our forecast. TP of SGD9.04 (pegged to 26x FY17 EPS) is maintained. Secondary valuation methodology using DCF yields a slightly higher SGD9.17 TP – based on 8.8% WACC and 2% TG.
Leng Seng Choon CFA
RHB Invest
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http://www.rhbinvest.com.sg/
2016-07-28
RHB Invest
SGX Stock
Analyst Report
9.04
Same
9.04
