SGX

SGX: FY11 results non-eventful.
4Q11 net profit at $79m, flat yoy, but up19% qoq due to a one-off cost in 3Q ($19m for expenses related to the failed ASX acquisition). This brings full yr FY11 profit to $295m, -8% yoy.
For 4Q, weak market conditions saw trading revenue decline 13% qoq to $98m, although non-trading revenues increased 11% qoq. Expenses were down 2% qoq, but up 2% yoy.
Mgt guided for FY12 capex of $50-45m, from $57m in FY11, suggesting the peak of the invmt phase has now passed.

Final div 15cts, down from 15.75cts last yr. But incl past interim div, full yr div of 27cts is unchg yoy. This translates to 3.6% yield on last close at $7.47.


HSBC upgrades to Overweight from neutral, but trims TP to $8.20 from $8.60. Says SGX’s turnover velocity is bottoming, and thing should start to improve.
Deutsche, Citi maintain Buy with TP $8.70, $8.30 rptvly.
Macquarie maintains Outperform with TP $8.73.
While most analysts cite positives from rollout of SGX Reach (from 15 Aug 2011), mgt has cautions that rather than expecting a sudden step up in volumes, it will most likely be a gradual improvement over the next 12 mths.