Earnings are in line, and we assume stronger 2013 securities ADT. Bursa Msia reported 3Q12 net profit of RM37m, down 4% YoY. This is close to our estimate of RM38m. 9M12 net profit of RM116m represents 76% of our 2012
forecast. Whilst operating revenue of RM97m was up a mild 0.6% YoY, this was more than offset by a 15% rise in other operating expenses. We maintain our assumption of 2012 and 2013 securities market ADT of RM1.7b and RM2.0b respectively – which factors in more trading following the recent listings and the upcoming General Elections. Our earnings forecasts are also unchanged. Our target price of RM6.81 is derived from 22x 2013F EPS, which is minus-one standard deviation from the 31x historical average. Maintain BUY.
Derivatives business growth offset weakness of securities market. 9M12 securities ADT of RM1.72b fell 10% YoY. The positive is that 9M12 derivatives market average daily contracts (ADC) rose 10% YoY to 38k
contracts, with volatility driving the trading of crude palm oil futures. 3Q12 ADC was even stronger at 42k. We continue to be optimistic on Bursa Msia’ growth in the derivatives business.
Mega listings for Bursa Msia. For 9M12, Bursa Msia raised RM18.3b from IPOs, which exceeded that of HKEx, SGX and ASX. The two big listings of Felda GV and IHH raised RM9.9b and RM6.3b, and were the third and fourth
largest globally respectively. Astro Msia was also just listed, and more IPOs are in the pipeline. We believe these will contribute to stronger ADT ahead.
forecast. Whilst operating revenue of RM97m was up a mild 0.6% YoY, this was more than offset by a 15% rise in other operating expenses. We maintain our assumption of 2012 and 2013 securities market ADT of RM1.7b and RM2.0b respectively – which factors in more trading following the recent listings and the upcoming General Elections. Our earnings forecasts are also unchanged. Our target price of RM6.81 is derived from 22x 2013F EPS, which is minus-one standard deviation from the 31x historical average. Maintain BUY.
Derivatives business growth offset weakness of securities market. 9M12 securities ADT of RM1.72b fell 10% YoY. The positive is that 9M12 derivatives market average daily contracts (ADC) rose 10% YoY to 38k
contracts, with volatility driving the trading of crude palm oil futures. 3Q12 ADC was even stronger at 42k. We continue to be optimistic on Bursa Msia’ growth in the derivatives business.
Mega listings for Bursa Msia. For 9M12, Bursa Msia raised RM18.3b from IPOs, which exceeded that of HKEx, SGX and ASX. The two big listings of Felda GV and IHH raised RM9.9b and RM6.3b, and were the third and fourth
largest globally respectively. Astro Msia was also just listed, and more IPOs are in the pipeline. We believe these will contribute to stronger ADT ahead.
Source: OSK
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