Stock Name: BURSA
Company Name: BURSA MALAYSIA BHD
Research House: MIDF
KUALA LUMPUR: MIDF Research has reaffirmed its trading buy recommendation on BURSA MALAYSIA BHD [] at RM7.60 with an unchanged target price of RM8.70, and said Bursa's 1Q10 net profit of RM28.05 million accounted for 18.6% of its net profit forecast for FY10 and 19.6% of consensus full FY10 estimates. The reported net profit for 1Q10 was lower by 70.9% quarter-on-quarter (q-o-q) but higher by 81% year-on-year (y-o-y), it said. Excluding the one-off capital gain of RM76 million in 4Q09 from the disposal of 25% stake in Bursa Malaysia Derivatives (subsidiary) to CME Group, Bursa's 1Q10 net profit grew 38.1% q-o-q and 81% y-o-y, it said. Operating revenue was higher due to higher equity trades as a result of buoyant equity market and higher derivatives trading volume, it said. "We maintain our expectation that the derivative trading revenue will account for 14.2% of total operating revenue in FY10, an increase of 1.2 percentage points from FY09. "Additionally, we expect an increase in usage for Bursa Suq al Sila' (BSAS), the Islamic commodity trading platform as Bursa continues its effort to internationalise the Islamic markets and products as well as attract international investors," it said. The research house maintained its trading buy call on the stock with an unchanged target price of RM8.70, pegged at 30 times PER (average of four years historical PE) on FY10 earnings per share. The stock is now trading at 28.25 times PER to consensus forecast for FY10 earnings, it said.
Company Name: BURSA MALAYSIA BHD
Research House: MIDF
KUALA LUMPUR: MIDF Research has reaffirmed its trading buy recommendation on BURSA MALAYSIA BHD [] at RM7.60 with an unchanged target price of RM8.70, and said Bursa's 1Q10 net profit of RM28.05 million accounted for 18.6% of its net profit forecast for FY10 and 19.6% of consensus full FY10 estimates. The reported net profit for 1Q10 was lower by 70.9% quarter-on-quarter (q-o-q) but higher by 81% year-on-year (y-o-y), it said. Excluding the one-off capital gain of RM76 million in 4Q09 from the disposal of 25% stake in Bursa Malaysia Derivatives (subsidiary) to CME Group, Bursa's 1Q10 net profit grew 38.1% q-o-q and 81% y-o-y, it said. Operating revenue was higher due to higher equity trades as a result of buoyant equity market and higher derivatives trading volume, it said. "We maintain our expectation that the derivative trading revenue will account for 14.2% of total operating revenue in FY10, an increase of 1.2 percentage points from FY09. "Additionally, we expect an increase in usage for Bursa Suq al Sila' (BSAS), the Islamic commodity trading platform as Bursa continues its effort to internationalise the Islamic markets and products as well as attract international investors," it said. The research house maintained its trading buy call on the stock with an unchanged target price of RM8.70, pegged at 30 times PER (average of four years historical PE) on FY10 earnings per share. The stock is now trading at 28.25 times PER to consensus forecast for FY10 earnings, it said.
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