[%ApEW%] 
Research by HLIB
HOLD – TP RM9.96

"Robust but getting stretched"

Judging from 2Q24’s Securities ADV of RM3.6bn (+23% QoQ, +103% YoY) and Derivatives ADC of 86k (+2% QoQ, +10% YoY), we estimate that Bursa could post quarterly earnings of RM83m (+11% QoQ, +70% YoY). This could bring 1H24 earnings to RM158m (+50% YoY) – forming 56%/54% of our/consensus full year forecast and deemed above expectations. Bursa’s share price has risen back to the highs last seen in Aug-20. However, current ADV (while strong) isn’t back to the pandemic heydays as (i) MTD Jul-24 ADV of RM3.7bn is -48% lower vs Aug-20 and (ii) YTD ADV of RM3.3bn is -21% lower vs FY20. We raise FY24/25/26 earnings by 9%/9%/3% and up our TP from RM9.15 to RM9.96, but downgrade our rating from Buy to HOLD.

Analyst:
Jeremy Goh, CFA 
[%uzCK%]
(603) 2083 1716

$KLSE-BURSA 
Research by HLIB
HOLD – TP RM9.96

"Robust but getting stretched"

Judging from 2Q24’s Securities ADV of RM3.6bn (+23% QoQ, +103% YoY) and Derivatives ADC of 86k (+2% QoQ, +10% YoY), we estimate that Bursa could post quarterly earnings of RM83m (+11% QoQ, +70% YoY). This could bring 1H24 earnings to RM158m (+50% YoY) – forming 56%/54% of our/consensus full year forecast and deemed above expectations. Bursa’s share price has risen back to the highs last seen in Aug-20. However, current ADV (while strong) isn’t back to the pandemic heydays as (i) MTD Jul-24 ADV of RM3.7bn is -48% lower vs Aug-20 and (ii) YTD ADV of RM3.3bn is -21% lower vs FY20. We raise FY24/25/26 earnings by 9%/9%/3% and up our TP from RM9.15 to RM9.96, but downgrade our rating from Buy to HOLD.

Analyst:
Jeremy Goh, CFA 
pwgoh@hlib.hongleong.com.my
(603) 2083 1716