Maybank IB Research projected quarter-on-quarter lower profit after tax and minority interest at RM63mil.
PETALING JAYA: Bursa Malaysia Bhd
expects a better second half this year, driven by a recovery in average daily value (ADV) that will be led by greater clarity on US tariffs.
Based on an ADV of RM2.4bil and 90,669 average daily contracts in the second quarter of 2025 (2Q25), CIMB Securities Research expected Bursa to report a 2Q25 net profit of RM54.5mil.
This would bring its cumulative net profit for the first half of 2025 to RM122mil, which translated to 46% of CIMB’s full-year FY25 forecast and 44% of consensus estimates.
Maybank Investment Bank (IB) Research projected quarter-on-quarter lower profit after tax and minority interest (patami) at RM63mil.
It maintained its earnings forecasts, projecting RM350mil pre-tax profit in financial year 2025 (FY25) and RM267mil in patami.
Maybank IB Research raised its stock call to a “buy” from “hold” and target price (TP) to RM8.80 a share from RM7.30 previously.
CIMB Securities Research retained its “hold” rating on the stock with an unchanged discount cash flow-derived TP of RM7.40 a share.
It said the share price is supported by a 4% dividend yield.
Based on its 94% dividend payout ratio, Maybank IB Research expects Bursa to declare a 31 sen dividend per share (DPS) for FY25 (FY24: 36 sen ex-eight sen special).
It expected the first interim DPS to be announced in the upcoming 2Q25 financial results release on July 29.
Bursa’s dividend policy is a payment of no less than 75% of patami, but it had paid 90% and above since listing in 2005, with FY20 to FY24 dividend payout ratio at 92% to 95%.
At 31 sen, it is a 3.9% yield based on its current share price, the research house pointed out.
Having paid a special dividend from FY24 profit, and with cash balance down to RM345mil as at March 31, 2025, it did not think Bursa will declare another special dividend soon.
“Bursa deserves higher valuation, premised on its transformation into a multi-asset exchange with more diversified product-cum-asset offerings and higher trading liquidity,” the research house said.
This will enlarge its revenue base, including non-trading revenue which made up 37% of operating revenue in 1Q25 and consequently, earnings, according to the research house.
It projected 2Q25’s RM2.5bil equity ADV as the base, with trading sentiment impacted by US tariff uncertainties during most of the quarter.
It said Bursa’s environmental, social and governance management had been significantly stepped up over the years, which implied a strong sustainability and governance framework, as well as execution.
Bursa is one of the largest exchanges in Asean with 1,056 public listed companies as of end May 2025, besides being the world’s biggest palm oil futures trading hub.
It offers one of the highest yields among listed exchanges and the highest return on equity. Hoerver, its price earnings ratio rating is below its listed peers in the region, the research house added.
