SGX: Deutsche is anticipating a solid earnings rebound in SGX's 3QFY16 results, which will be released next Wed (20 Apr).
- Net profit is expected to jump 14% q/q to $96m due to a pick-up in turnover for both securities and derivatives markets, with the rise in operating expenses paced by revenue growth.
- However, the house cited that maintaining this turnover could be a challenge if the global macro situation deteriorates.
- Even so, the stock still looks attractively valued at 25x FY16 P/E with ROE of 34%. The house maintained its Buy with TP of $8.30.