Singapore Exchange's Fiscal 2022 Result Reflects Strategy Execution

Narrow-moat Singapore Exchange’s fiscal full-year result was within our expectation. Excluding Treasury income, full-year revenue was up 7% to SGD 1.05 billion. Higher expense from recent acquisitions continues to flow through, with overall net profit up 1% year on year. Fourth-quarter dividend of SGD 0.08 per share is in line with previous quarters, taking full-year dividend to SGD 0.32 per share. We reaffirm our SGD 11.20 fair value estimate and our view of the exchange is unchanged. We continue to see the exchange’s expansion in its product portfolio as underpinning growth in the medium term. As such, our revenue forecasts are in line with the exchange’s medium-term guidance of high-single-digit growth. Capital expenditure guidance of SGD 70 million to SGD 75 million in 2023 was slightly above our forecast of SGD 62.5 million, and we lift our long-term assumption to SGD 60 million, from SGD 55 million.