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NewsBursa a 'buy' says AmResearch
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Bursa a 'buy' says AmResearch
by hlk Wed 18 Apr 2012, 23:49
AmResearch Sdn Bhd has recommended a "buy" on Bursa Malaysia Sdn Bhd with a fair value of RM8.50 per share, based on its trend-average target price earnings of 30 times the financial year 2012 forecast earnings per share (EPS).
The share price of Bursa Malaysia closed three sen higher at RM7.03 today.
AmResearch expects Bursa Malaysia’s average daily trading value (ADTV) to potentially expand sequentially each quarter, from the RM2 billion for the first quarter of its current financial year.
In a research note today, the research firm said this is due to its higher target for the FBM KLCI at 1,690 points by year-end and intact economic fundamentals.
In addition, AmResearch sees an increase in the number of initial public offerings in the second half of this year, with several prolific listings including Felda Global Ventures Holdings and Integrated Healthcare, as well as an encouraging number of new structured warrants being listed.
AmResearch forecasts Bursa Malaysia’s net profit at RM151 million for its FY2012 and at RM172 million for its FY 2013 based on a conservative ADTV of RM2 billion and RM2.2 billion, respectively. Net profit for financial year 2011 was
RM146.16 million.
Velocity is expected to be a tad higher at 36 per cent compared with 34 per cent for FY 2011, it said.
"We are positive on the derivatives market and are projecting the average daily contracts traded (ADC) to grow by 18 per cent to 40,679 contracts for FY2012 from 34,474 contracts for FY 2011," AmResearch said.
"This is underpinned by open interest being at an all-time high, the launch of the new derivatives clearing system, and derivative products as well as an overhaul of participantship structure," it added.
AmResearch believes that Bursa Malaysia would continue with its generous dividend policy, supported by a strong balance sheet and cash-in-hand, of RM500 million.
"We have assumed a dividend payout ratio of 91- 94 per cent for
FY2012 and FY2013 with gross dividend per share at 26.5 sen and 29.5 sen, respectively. This translates into dividend yields of 3.8 per cent and 4.2 per cent. -- Bernama
The share price of Bursa Malaysia closed three sen higher at RM7.03 today.
AmResearch expects Bursa Malaysia’s average daily trading value (ADTV) to potentially expand sequentially each quarter, from the RM2 billion for the first quarter of its current financial year.
In a research note today, the research firm said this is due to its higher target for the FBM KLCI at 1,690 points by year-end and intact economic fundamentals.
In addition, AmResearch sees an increase in the number of initial public offerings in the second half of this year, with several prolific listings including Felda Global Ventures Holdings and Integrated Healthcare, as well as an encouraging number of new structured warrants being listed.
AmResearch forecasts Bursa Malaysia’s net profit at RM151 million for its FY2012 and at RM172 million for its FY 2013 based on a conservative ADTV of RM2 billion and RM2.2 billion, respectively. Net profit for financial year 2011 was
RM146.16 million.
Velocity is expected to be a tad higher at 36 per cent compared with 34 per cent for FY 2011, it said.
"We are positive on the derivatives market and are projecting the average daily contracts traded (ADC) to grow by 18 per cent to 40,679 contracts for FY2012 from 34,474 contracts for FY 2011," AmResearch said.
"This is underpinned by open interest being at an all-time high, the launch of the new derivatives clearing system, and derivative products as well as an overhaul of participantship structure," it added.
AmResearch believes that Bursa Malaysia would continue with its generous dividend policy, supported by a strong balance sheet and cash-in-hand, of RM500 million.
"We have assumed a dividend payout ratio of 91- 94 per cent for
FY2012 and FY2013 with gross dividend per share at 26.5 sen and 29.5 sen, respectively. This translates into dividend yields of 3.8 per cent and 4.2 per cent. -- Bernama
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