Broker Name: Maybank Research Pte Ltd
Date of Report: February 5, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Singapore Exchange Ltd (SGX) is showing strong momentum in both its FICC (Fixed Income, Currencies, Commodities) and Equities-Cash segments, with 1HFY26 profits exceeding market expectations.
- Growth in cash equities is expected to accelerate in the second half of the year as market reforms are implemented, potentially driving higher volumes and improved fee mix.
- There is a robust pipeline of over 30 IPOs and interest in value unlocking among listed companies, which could boost liquidity and trading activity.
- FICC volumes jumped significantly, driven by global uncertainty and rising demand for risk management solutions; this is expected to continue supporting revenue growth.
- SGX remains a key proxy for Singapore’s capital market reforms and is well positioned for regional risk management opportunities.
- The target price for SGX is raised to SGD20.37, reflecting optimism on earnings growth and multi-asset platform synergies. The recommendation is maintained as BUY.
- SGX’s revenue growth (projected 10% CAGR FY25-28E) is supported by safe-haven flows in volatile markets, while costs are expected to remain under control.
- Dividend payout ratio may decrease as SGX retains reserves for potential M&A and inorganic growth, but dividend visibility remains strong due to high operating leverage.
- Main risks include technology disruptions, competition from regional exchanges, and disruptive fintech solutions.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research website: https://www.maybank.com/investment-banking
