Bursa Malaysia

[winston]

not vested

Bursa Malaysia (BURSA MK)
3Q20: Robust Trading Volumes Drive Earnings

Bursa reported record 3Q20 earnings on the back of record high securities ADV.

Although ADV is likely to remain elevated given the ample liquidity and low interest rate
environment, we think it has possibly peaked in 3Q20.

As such, investors should sell into strength on the back of still-lofty ADV expectations over the next 1-2 quarters.

Maintain HOLD and target price of RM9.10 (12-month mean PE of 24.5x).
Entry level: RM8.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 275e8e9fdb

[winston]

not vested

3Q20: A record quarter

As expected, BURSA delivered a record quarter with 3Q20 net profit at MYR122m (+159% YoY, +41% QoQ), bringing 9M20 to MYR273m (+95% YoY).

That said, 3Q20 net profit was slightly short of our MYR130m-MYR140m forecast range due to higher-than-expected opex.

After paying a 17sen 1st interim DPS on 26 Aug, there was no 2nd interim for FY20E.

We trim our FY20/21/22 net profit forecasts by 3%/2%/2% respectively, and TP by a similar 2% to MYR9.10. Maintain HOLD.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 7ecdb4.pdf

[winston]

not vested

Bursa Malaysia (BURSA MK)
Share Price: MYR8.78
Target Price: MYR10.05
Recommendation: Buy
Strong start; U/G to BUY

January’s equity ADV has stayed robust at MYR5.05b MTD, a strong start to the year.

We think an ADV of >MYR4b is the new base amid a low interest rate environment
persisting until end-2021, at least.

We raise equity ADV assumptions and earnings forecasts.

Our new TP is MYR10.05 (+10%).

Bursa’s 4.5% DY offering for FY21E is attractive, and we think it has the capacity to pay a special. U/G to BUY.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/2 ... 518f47.pdf

[winston]

not vested

HLIB keeps 'buy' call on Bursa Malaysia, raises target price to RM11.49

by Sulhi Khalid

KUALA LUMPUR (April 15): Hong Leong Investment Bank (HLIB) Research has maintained its “buy” call on Bursa Malaysia Bhd at RM8.70 with a higher target price of RM11.49 (from RM11.46) based on 29 times price-to-earnings ratio (P/E) tagged to financial year 2021 (FY21) earnings per share (EPS).

“Judging from 1Q21 ADV/average daily contract (ADC) of RM5.08 billion/79,900, quarterly core earnings could come in at RM108 million, implying a decline of 8% quarter-on-quarter (q-o-q) (fewer trading days) but an increase of 67% year-on-year (y-o-y).

“We raise FY21/FY22 earnings by 4%/8% and introduce FY23 forecast,” said HLIB research analyst Jeremy Goh in a note.

“Foreign shareholding of 20.3% (end-March) is at a record low, even below the global financial crisis (GFC) trough of 20.7%.

According to HLIB, the local bourse is tentatively slated to announce its 1Q21 earnings on April 27.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... ice-rm1149

[winston]

not vested

For stock selection, we like BURSA (HLIB Research-BUY-TP RM11.82) as a safe-haven which also offers resilient earnings, attractive dividend yield (~4%) and inexpensive valuations against regional peers.

The stock should attract buyers for an imminent downtrend line breakout, supported by bottoming up technical.

A decisive breakout above RM8.64 (200D SMA) will spur further upside towards RMRM8.78 (30D SMA) and RM9.00 psychological levels.

Key supports are pegged at RM8.40-8.30-8.20 zones.

Source: HLIB

[winston]

not vested

Expected decline in FY22F equity ADTV

At 77.5% of our full-year forecast, 9M21 net profit was within expectation.

Two proposals under Budget 2022 are likely to have a negative impact on Bursa’s FY22F earnings: an increase in stamp duty rate and Cukai Makmur.

Downgrade Bursa to Reduce given our projected 45.2% drop in FY22F net profit due to our expected 36% drop in equity ADTV and higher tax rate.

TP: RM 6.59

Source: CIMB
https://rfs.cgs-cimb.com/api/download?f ... 3A3BEC2AE6

[behappyalways]

Malaysia cuts stamp duty for share trading and expedites IPO process to revive market
https://www.theedgesingapore.com/news/m ... ive-market

[winston]

not vested

Bursa Malaysia (BURSA MK)
2Q23: Earnings Have Troughed; Upgrade To BUY

Bursa reported in-line 2Q23 results on lower ADV.

Looking ahead, we think quarterly earnings may have troughed as ADV has been charting an encouraging recovery.

Upgrade to BUY with a higher target price of RM7.85 on valuation rollover, earnings
upgrade and higher valuation multiple.

We expect positive price action underpinned by both valuation re-rating and ADV recovery into 2024 on the back of a more pronounced global equity risk on sentiment as the US interest rate cycle peaks.

TP: MYR 7.85

Source: UOBKH

https://research.uobkayhian.com/content ... 66f0a7d1bc

[winston]

Looking beyond …

Refreshed perspective; U/G to BUY

We lift Bursa to BUY with a higher MYR8.80 TP.

In our view, Bursa deserves a higher valuation as it transforms into a multi-asset exchange which will enlarge its earnings base.

Also, our FY26E MYR2.6b equity ADV assumption could be conservative in a likely scenario of fresh trade deals between US and its trading partners, thus leading to improved investor sentiment.

In terms of ESG, our updated score of 86 is the highest in our universe, thus lifting Bursa’s appeal.

Lastly, Bursa is one of the largest exchanges in ASEAN with the 2nd highest DY and highest ROE. Yet, it trades below peers.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/470379.pdf

[winston]

vested

Bursa Malaysia may report weak 2Q on lower trading activity, analysts say
Results Preview

By Yap Yan Qing

Net profit for the April-June quarter (2QFY2025) will likely come in as low as RM51 million, a decline of up to 37% year-on-year, according to CIMB Securities’ estimates.

That would bring six-month net profit to RM118.5 million, accounting for just 43% of the consensus full-year estimates.

The average daily trading value of securities in 2QFY2025 was RM2.4 billion, a decline of 38% year-on-year and 14% quarter-on-quarter.

In the derivatives space, the average daily contracts rose 5.9% year-on-year but declined 11.3% quarter-on-quarter to 90,669 contracts.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/762785