Broker Name: CGS International
Date of Report: October 20, 2025
Excerpt from CGS International report.
Report Summary
- Bursa Malaysia will pay the Securities Commission (SC) a new annual fixed regulatory fee of RM28m and a derivative levy (37.5% of derivative revenue) from FY26-28, with a cap rising from RM35m to RM45m per year.
- Bursa’s revised fee structure, approved in principle by the SC, is expected to generate RM28m-34m in additional annual income, largely offsetting the new SC fees.
- The report reiterates an Add call on Bursa, projecting a recovery in equity average daily value (ADV) in 2H25 and robust growth in derivative income, with ROE expected to improve from 29.9% in FY25 to 31.9% by FY27.
- The target price for Bursa is raised from RM9.18 to RM9.39, reflecting rolled-over valuation to end-2026 and maintaining FY25-27 EPS forecasts.
- Potential downside risks include a decline in trading activities, impact from US tariffs on Malaysia’s economy, and higher-than-expected expenses or regulatory fees exceeding new income.
- Bursa is highlighted for its pivotal role in ESG initiatives, including operating Malaysia’s voluntary carbon market and collaborating on regional ESG standards.
- Financial summary: Bursa expects moderate revenue and profit growth from FY26 onwards, with strong margins, high dividend payout, and a robust balance sheet.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
