KUALA LUMPUR: CIMB Equities Research lowered its target price for stock exchange operator Bursa Malaysia to RM10.20 from RM10.70 as it reduces its earnings per share (EPS) forecast.
It said on Wednesday, April 21 that even with an 81.3% on-year rise, Bursa’s 1Q10 net profit came in at only 18% of its full-year forecast and 20% of consensus.
The variance came from a lower-than-expected velocity of 35% against its projection of 40%. As expected, no dividend was announced for the quarter.
"We pare down our FY10-12 EPS forecasts by about 4% for a slower velocity of 38%. This leads to a reduction in target price from RM10.70 to RM10.20, still pegged to an FY11 P/E of 33x. The strong recovery in 1Q affirms our view of favourable prospects for Bursa, backed by our end-2010 KLCI target of 1,450," it said.
CIMB Research maintained its trading buy call, based on the potential re-rating catalysts of (1) an expected rise in trading value, (2) sustained market sentiment, (3) a rebound in the effective clearing fee rate, and (4) stronger growth in the derivatives business.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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