Singapore
Exchange's fiscal-3Q13 showed a good pickup, with net profit of $98
million, up 26% on-year, at the upper end of the estimate range, led by
stronger securities and derivatives, OSK-DMG says.
The
house raises its FY13-14 net profit forecast by 4% each after lowering
operating cost projections as the company continued to show good cost
discipline and maintained its operating expense guidance.
It raises its fair value to $6.80 from $6.50. But it adds, while the stock's current 24.5x 2013 PER isn't particularly expensive, it prefers Bursa Malaysia on its cheaper 22x 2013 PER valuation and stronger earnings growth.
"Furthermore, we note that April's average daily turnover has softened to around $1.26 billion, potentially suggesting a weaker 4Q13 is in store. Thus, despite the commendable results, we have maintained our Sell call." The stock is up 1.0% at $7.78.
It raises its fair value to $6.80 from $6.50. But it adds, while the stock's current 24.5x 2013 PER isn't particularly expensive, it prefers Bursa Malaysia on its cheaper 22x 2013 PER valuation and stronger earnings growth.
"Furthermore, we note that April's average daily turnover has softened to around $1.26 billion, potentially suggesting a weaker 4Q13 is in store. Thus, despite the commendable results, we have maintained our Sell call." The stock is up 1.0% at $7.78.
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