Excluding one-off items, underlying net profit in FY17 would have been $347 million.
See: SGX reports FY17 earnings to $340 mil; expects Asian market activities to return to higher levels of past years
RHB is maintaining its FY18F securities average daily value (SADV) forecast of $1.35 billion.
In FY17, SGX recorded an SADV of $1.12 billion, marginally higher than a year ago. “We expect the improvement in the value to continue,” Leng says.
RHB is also maintaining it FY18F derivatives average daily contract (DADC) forecast of 794,000.
SGX saw a 10% y-o-y decline in DADC for FY17, on the back of a plunge in China A50 Index futures.
However, Leng opines that the implementation of the Shenzhen-Hong Kong Stock Connect scheme in December 2016 could improve trading contracts for the China A50 Index futures.
“We also forecast FY18 net profit to grow 15% y-o-y, driven by volume expansion,” says Leng.
As at 12.29pm, shares of SGX are trading 2 cents lower at $7.52.
