Stock Name: SGX
Company Name: SINGAPORE EXCHANGE LIMITED
Kim Eng Research in a June 22 research report says: "With FY Jun11 coming to a close, we expect SGX to register a full-year net profit of $305 million ($287 million pre-adjustments for exceptional items). This takes into account an average daily trading value of $1.6 million in 4QFY Jun11, which is lower q-o-q and y-o-y.
"We expect the 85-90% dividend payout policy to remain intact and this will work out to a final dividend of 11 cents per share. In the meantime, securities trading will continue to account directly for 45% of group revenue. We assume FY Jun12 and FY Jun13 ADT of $1.8 billion and $2 billion, respectively, which are mid-peak levels of the last cycle.
"We peg our target price of $7.55 at 25x FY Jun12F (historical PER cycle). At this juncture, we see downside risks to our assumptions. MAINTAIN HOLD."
Company Name: SINGAPORE EXCHANGE LIMITED
| Research House: Kim Eng | Price Call: HOLD | Target Price: 7.55 |
Kim Eng Research in a June 22 research report says: "With FY Jun11 coming to a close, we expect SGX to register a full-year net profit of $305 million ($287 million pre-adjustments for exceptional items). This takes into account an average daily trading value of $1.6 million in 4QFY Jun11, which is lower q-o-q and y-o-y.
"We expect the 85-90% dividend payout policy to remain intact and this will work out to a final dividend of 11 cents per share. In the meantime, securities trading will continue to account directly for 45% of group revenue. We assume FY Jun12 and FY Jun13 ADT of $1.8 billion and $2 billion, respectively, which are mid-peak levels of the last cycle.
"We peg our target price of $7.55 at 25x FY Jun12F (historical PER cycle). At this juncture, we see downside risks to our assumptions. MAINTAIN HOLD."
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