Bursa Malaysia

Bursa Malaysia

Postby winston » Tue Mar 13, 2018 2:35 pm

not vested

BURSA MALAYSIA BHD

Buy (maintained)
Target price: RM12

NEW capital market measures, a stronger ringgit, a stronger pipeline of initial public offerings (IPOs) and the upcoming general election, are some of the key catalysts for Bursa Malaysia Bhd.

Affin Hwang Capital, which recently hosted a Non-Deal Roadshow (NDR) for Bursa in Hong Kong and Singapore, said investors were generally excited about the shares of the equity market regulator, as they viewed the counter as a beta play (being the proxy to the Malaysian securities market) and as a high-yield play.

Affin Hwang Capital noted that many investors have continued to monitor Bursa closely due to the strong start in the equity market average daily value (ADV), which was about RM3.16bil between Jan 2 and March 2, almost 25% higher than in 2017.

The brokerage reiterated its “buy” call, with an unchanged 12-month price target of RM12 based on 26 times 2018 estimated earnings.

According to Affin Hwang Capital, 2018 could turn out to be another robust year in the Malaysian equity market and potential catalysts such as the BURSA-SGX Trading Link (to be launched by end-2018) could boost the outlook for Bursa.

The brokerage said as investors continue to look for post-trade benefits of the BURSA-SGX Trading Link, this would likely be the key re-rating factor not just for Bursa, but for all other listed securities on the exchange.

At present, however, the missing links in the Malaysian market are a more diversified structured product offering (such as single stock options, additional stock index future, mini-derivatives contracts) and key domestic institutional investors being in the derivatives market (as a hedging tool), Affin Hwang Capital said.

Source: Affin Hwang Capital
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Re: Bursa Malaysia

Postby winston » Fri May 08, 2020 11:10 am

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May 4, 2020

Maintain BUY, TP: RM6.83.

Along with the earnings increase, we also raise our PE target from 23.5x to 25x (tagged to FY20 EPS), leading to a higher TP of RM6.83 (from RM6.10).

Our valuation yardstick of 25x is
(i) almost +1SD above 5 year mean of 26.1x but
(ii) rather inline with the mean of 24.1x witnessed during FY17-18 period which saw strong ADV (as explained above), similar to current trends.

Bursa is perhaps what we would call a “circumstantial beneficiary” of Covid-19, given robust ADV amid the volatility brought about by uncertainties.

Looking ahead, Bursa could very well benefit post-pandemic as well, as ADV sustains itself driven by an eventual market recovery.

Yield is also decent at 4.1% (FY20-21).

Maintain BUY.

Source: HLIB
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Re: Bursa Malaysia

Postby winston » Fri Jun 19, 2020 2:59 pm

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Bursa Malaysia (BURSA MK): FULLY VALUED (downgrade from HOLD)
Market Cap: US$1,403m | Average Daily Value: US$6.5m
Last Traded Price: RM7.43; Price Target: RM6.00 (Downside 19.2%) (Prev RM6.40)

Exuberance is baked in

2Q20 to be a strong quarter as equity trading activity reaches new highs

Current excitement may be transient in nature; may not extend past the year

Raise FY20-22F earnings but positives already priced in

Downgrade to FULLY VALUED with lower RM6.00 TP

Source: DBS

https://researchwise.dbsvresearch.com/R ... =feiigkiia
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Re: Bursa Malaysia

Postby winston » Wed Jul 29, 2020 6:05 am

vested

Bursa Malaysia Bhd booked its highest quarterly net profit of RM86.23 million for the second quarter ended June 30, 2020, up 86.08% from RM46.34 million last year.

Quarterly revenue, meanwhile, rose 45.03% to RM179.78 million from RM123.96 million, largely thanks to a big jump in securities market trading revenue to RM110.1 million from RM58.8 million previously.

The extraordinary quarter brought Bursa Malaysia's cumulative results for the first half ended June 30, 2020 to their best since its listing in 2005, as the group benefitted from market volatility, which resulted in higher trading activities in both securities and derivatives markets.

The stock market operator approved a quarterly dividend of 17 sen per share — also its highest ever since its listing.

Source: The Edge
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Re: Bursa Malaysia

Postby winston » Wed Jul 29, 2020 6:12 am

Bursa says retail-driven rally not debt-fuelled, will remain vigilant

by Lai Ying Yi

KUALA LUMPUR (July 28): Bursa Malaysia Bhd says the recent rush in retail participation that helped drive the strong rally in the local market, is largely due to a reallocation of cash by investors due to the current low-interest environment, and not fuelled by debt.

Chairman Tan Sri Abdul Wahid Omar (pix), during a briefing on the group’s latest quarterly earnings today, said share margin financing levels seen across retail investors are not at elevated levels, as investors were merely switching their investments from term deposit into the share market in search of better yields.

“The difference between previous bull runs and this bull run is, we have not seen growth in margin financing for shares, [and the trading is] mainly funded by cash, meaning mere reallocation of cash by investors,” said Bursa chief executive officer Datuk Muhamad Umar Swift.

As for the heavy churning of deep out-of-the money put warrants that has been seen in the local stock market recently, Muhamad Umar said he is keeping a close watch on the phenomenon.

During the briefing, Muhamad Umar also said Bursa is very mindful about any inappropriate market practices.

“We do [live] market surveillance, [so] we do know who is trading and how the market is behaving. We are aware and watching the trade,” he said.

At present, Muhamad Umar said his primary concern is investors’ underlying knowledge of the financial instruments available, versus their investing strategies. “What motivates investors [to partake in certain instruments]? Is it short-term, medium-term or long-term investing? Or is it momentum trading that is in play?” he asked by way of example.

As such, he said Bursa is engaging with its business partners to increase awareness and instill education about more innovative financial instruments.

Touching on the technical glitch that caused a Bursa-wide halt in trading on July 16, Muhamad Umar said the issue was due to “unanticipated and unforeseen circumstances”.

While he did not detail what they were, he nevertheless assured that the issues have been resolved and that trading is expected to be smooth, going forward.

Meanwhile, Muhamad Umar expects market behaviour to continue to respond to value, with main trading themes such as palm oil, rubber gloves and infrastructure.

Abdul Wahid, meanwhile, thinks the financials and property sectors are worth a look, as they are trading below their respective net asset values.

Bursa shares closed 38 sen or 3.6% lower at RM10.04 today, giving it a market capitalisation of RM8.12 billion. Year-to-date, the stock is up 64.8%.

Source: The Edge

https://www.theedgemarkets.com/article/ ... n-vigilant
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Re: Bursa Malaysia

Postby winston » Wed Jul 29, 2020 9:13 am

vested

Bursa Malaysia (BURSA MK)

Share Price: MYR10.04
Target Price: MYR9.30
Recommendation: Sell

2Q20: In-line

Bursa’s strong 2Q20 brought 1H20 net profit to MYR151m (+62% YoY), in-line, at 57% of our FY20E (59% of consensus).

Equity ADV scale another high at MYR5.3b in July MTD vs. our earlier MYR2.8b est. for 3Q20.

We raise FY20/21/22E net profit by 52%/46%/45%.

Our new TP is MYR9.30 (+MYR1.75) on unchanged 23x FY20E PER (-0.25 SD of 10Y mean).

Current valuations at 25x/28x FY20/21E PER have priced in the positives.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 4712d8.pdf
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Re: Bursa Malaysia

Postby winston » Mon Oct 19, 2020 9:13 am

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Bursa Malaysia (BURSA MK)

Share Price: MYR8.90
Target Price: MYR9.30
Recommendation: Hold

Lower equity ADV priced in

Equity ADV has been lower at MYR4.08b in the first 12 trading days of October and BURSA’s share price downtrend already reflected this.

At current level, concerns on the impact of bank loan moratorium ending, are priced in.

On higher-than-expected 3Q20 trading activities and on tweaking fwd. assumptions, we lift FY20E-22E net profit by 10%-13%. 3Q20 results, releasing on 27 Oct, should see record profits.

We U/G our call to HOLD with an unchanged MYR9.30 TP on rolling fwd valuation.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 9c82d1.pdf
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Re: Bursa Malaysia

Postby winston » Tue Oct 27, 2020 4:42 pm

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Bursa 3Q net profit surges more than twofold to RM121.94m

by Surin Murugiah

KUALA LUMPUR (Oct 27): Bursa Malaysia Bhd's net profit for the third quarter ended Sept 30, 2020 surged more than twofold to RM121.94 million from RM47.10 million a year earlier, on the back of higher operating revenue.

In a bourse filing today, Bursa said revenue for the quarter jumped to RM237.74 million from RM122.67 million previously.

Earnings per share was 15.1 sen versus 5.8 sen earlier.

Average daily trading value growing by 101.8% to RM4 billion in 9MFY20 compared to RM2 billion in 9MFY19.

Source: The Edge

https://www.theedgemarkets.com/article/ ... m-year-ago
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Re: Bursa Malaysia

Postby winston » Wed Oct 28, 2020 10:29 am

Record-high 3Q20 net profit unsustainable?

Bursa’s 9M20 net profit was above our expectation (84% of our FY20 forecast) due to higher-than-expected equity market ADTV.

3Q20 equity ADTV surged 207.8% yoy, driving Bursa’s net profit growth in 3Q20 to an impressive158.8% yoy.

Retain Hold on Bursa as we think the stock is fairly valued, and we expect the equity ADTV to decline qoq in 4Q20F. TP RM 9.18.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... C68AC8392F
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Re: Bursa Malaysia

Postby winston » Wed Oct 28, 2020 10:43 am

not vested

What’s New

9M20 earnings in line with expectations

3Q20 performance underpinned by historic highs in equity trading activity and velocity, unlikely to be replicated going forward

Steady state trading activity only to emerge in 2021 given themes still present in 4Q20

Maintain FULLY VALUED with RM7.35 TP

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fibeckhfj
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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