Thursday, January 22, 2015


SGX: 2QFY15 net profit was in line, rising 15.5% to $87.6m, while revenue rose 18.6% to $195.1m, driven by a 45.6% increase in derivatives revenue to $76.4m on the back of a 183% surge in China A50 futures volume. This was offset by a 1.1% decline in securities revenue to $51.7m. Daily average value rose 4%, but the dip in revenue was due clearing fees dropping 0.1bp to 3.0bps. Regarding the 5 Nov ’14 trading disruption, management expects related expenses of $3-4m, and will be recorded as incurred. Management is bringing forward the capex investment for a derivatives trading platform, which should considerably improve execution abilities when completed 2 years down the road. Meanwhile, although volatility has improved and board lot sized reduced, cash ADT has been pale thus far. Deutsche Bank sees possible dip in net profit of about 5%. 4¢ interim DPS maintained Latest broker ratings: Goldman Sachs maintains Buy with TP cut to $9.4 from $9.6 Morgan Stanley maintains Overweight with TP of $8.16 Deutsche Bank maintains Buy with TP of $8.70

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