BURSA (1818) - BURSA – Fundamental Analysis (1 Aug 2016)

BURSA – Fundamental Analysis (1 Aug 2016)

Excel – Download the analysis file
Latest Financial – Q2 2016 Financial Report (25 Jul 2016)
FY16 Q2 Results Highlight:
  • 2QFY16 vs. 2QFY15
    • 2QFY16 revenue climbed to RM129.72m (2QFY15: RM127.02m).
    • 2QFY16 net profit fell to RM49.48m (2QFY15: RM49.49m) as equities transaction value declined while derivative trades rose.
    • Average daily trading value for on-market equity transactions moderated to RM1.84 billion in 2QFY16. Derivative market average daily contracts increased 21.7% to 61,611 contracts.
  • 1HFY16 vs. 1HFY15
    • Revenue climbed to RM263.65 million from RM254.11 million (1HFY15).
    • 1HFY16 net profit rose to RM99.41m (1HFY15: RM96.54m).
  • Derivative market average daily contracts grew 8.1% to 59,790 contracts during 1HFY16. On-market equity transactions’ average daily trading value fell 4.2% to RM1.91 billion.
  • The decent performance was anchored by both:
    • Higher growth from Bursa Suq Al-Sila (BSAS; +18%), on the back of higher adoption of the Murabaha concept as well as
    • Better listing and issuer services revenue (+5%) on higher initial and additional listing fees from the transfer of listing status and higher number of corporate exercises in 1H16.
  • For 2QFY16, Bursa Malaysia declared a dividend of 17 sen a share. The ex and payment dates fall on Aug 5 and 19 respectively.
Going Forward:
  • This financial year will remain challenging in view of expected softer trading activities in the near term as sentiments remain depressed by broad macro uncertainties and concerns over potential outflow in foreign funds in the 2H.
  • BURSA’s attractive dividend will the main catalyst for the stock.
  • In my opinion, fair value of BURSA is from 8.5 to 9.5 (Uncertainty Risk is from MEDIUM to HIGH).
  • I will continue to hold, but will not accumulate BURSA for the time being.
At the time of writing, I owned shares of BURSA.