SGX on track to meet $0.31 FY19 DPS as derivatives maintain strength

This translates to a 4% dividend yield higher than the Singapore sovereign 10-year yield.

SGX remains on track to hit its dividend per share (DPS) FY19 target of $0.31, according to RHB Research, which translates to a 4% yield higher than the Singapore sovereign 10-year yield of 2.08%.

The strong performance comes amidst strong derivatives volumes with contracts traded on China A50 Index Futures up 8% YoY in January-February.

“We believe market volatility will keep derivatives volume firm, though we have conservatively assumed FY19F derivatives average daily contract (DADC) of 924,000 vs 8MFY19’s 941,000 although still higher than FY18’s 795,000,” analyst Leng Seng Choon said in a report.

Derivatives are tipped to haul $444m in revenue and account for half of group revenue by end-2019 as rattled investors continue to seek refuge in risk management and hedging tools, according to an earlier report from OCBC Investment Research. In Q2 2018, the derivatives business of SGX saw the largest increase in revenue at 35% to $112.9m to contribute the most to the bourse’s quarterly earnings.

However, Leng adds that the team cut SGX’s FY19 profit estimate by 0.2% amidst a reduction in SADV assumption to $1.4b from $1.07b although this will be largely offset by our higher FY19F DADC assumption of 924,000 from 897,000.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia