Broker Name: CGS International Securities
Date of Report: February 5, 2026
Excerpt from CGS International Securities report:
Report Summary
- Singapore Exchange (SGX) reported 1HFY26 adjusted net profit of S\$357.1m, up 11.5% year-on-year, considered in line with expectations as operating expenses were seasonally lower.
- Strong trading volumes in fixed income, commodities, currencies (FICC) and cash equities drove revenue growth, offsetting weaker treasury income from equity derivatives.
- SGX’s partnership with Nasdaq to establish a global listing board (GLB) supports a healthy IPO pipeline and is expected to enhance market liquidity.
- SGX remains committed to increasing dividends, projecting a yield of about 2.5–3.0% for FY26–28, and plans further investments in platform modernization and product capabilities.
- Risks include stagnating trading volumes and lower treasury income if interest rates decline.
- SGX has an improved ESG score, with strong governance and sustainability initiatives, and continues to invest in employee development and diversity.
- Target price is maintained at S\$19.10 with an “Add” rating, reflecting confidence in sustained growth and potential re-rating from new market initiatives.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
