SGX - RHB Invest 2017-05-24: Helping Tech SMEs Access Capital Markets

SGX - RHB Invest 2017-05-24: Helping Tech SMEs Access Capital Markets SINGAPORE EXCHANGE LIMITED S68.SI

SGX - Helping Tech SMEs Access Capital Markets

  • Media reports highlighting that SGX is nearing a deal with IMDA to develop a system to encourage local start-ups to list on SGX is a positive, in our view. This could potentially bring back more listings to SGX. 
  • Whilst the impact of such a system would take time (details have not been announced), we believe investors would be excited. 
  • We assume FY18F SADV of SGD1.35bn, and maintain our BUY recommendation with unchanged TP of SGD9.10 (23% upside), pegged to FY18F P/E of 25x (1SD above its 2-year mean of 22.6x).
  • According to news reports, SGX is nearing a deal with Singapore’s Infocomm Media Development Authority (IMDA) to develop a system designed to encourage local start-ups to list on the bourse. The reports quote people familiar with the matter. Under the agreement, the bourse operator would help pair technology companies with investors, with the aim of securing their listing in the citystate.
  • We believe that SGX’s tie-up with the regulator would deepen the exchange’s so-called sector approach, with four industries, including technology, as the focus of its listings strategy. SGX has not made any official comments on this latest news.
  • We have assumed FY18F securities average daily value (SADV) of SGD1.35bn, and maintain our BUY recommendation on SGX. 
  • Our TP of SGD9.10 is unchanged, and pegged to 25x FY18F EPS (1SD above its 2-year mean of 22.6x).




Leng Seng Choon CFA RHB Invest | http://www.rhbinvest.com.sg/ 2017-05-24
RHB Invest SGX Stock Analyst Report BUY Maintain BUY 9.100 Same 9.100



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