Singapore Exchange Ltd

S68: XSES (SGP)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SGD 96.10	Wph	Ljrfzrcy

SGX Earnings: Outsize Exposure to Derivatives Provides Resilient Growth

Roy Van Keulen

Aug 17, 2023

We maintain our SGD 13 fair value estimate for wide-moat Singapore Exchange following full-year results. Adjusted net profit after taxes of SGD 503 million for fiscal 2023 is in line with our SGD 506 million forecast. The exchange intends an SGD 8.5 cent final quarter dividend per share subject to approval at the annual general meeting in October. This would add up to SGD 32.5 cents for the year. At current prices, shares in SGX screen as materially undervalued.

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