• Maintain BUY (TP: RM11.10). Bursa Malaysia Berhad (Bursa) reported a 9M24 PATAMI of RM241mn (+25% YoY), which aligns with both ours and Bloomberg consensus estimates, accounting for 78% and 76% of 2024F PATAMI, respectively. The notable growth in PATAMI was largely attributed to a 53% YoY increase in Securities Trading contributions, rising to RM300mn in 9M24 from RM196mn in 9M23. We maintain our BUY call on Bursa with a TP of RM11.10, pegged at 26x PER (+1SD above 10-year average PER) to 2025F EPS of 42.6 sen.

• Key Highlights. In 3Q24, Bursa’s total average daily traded value (ADTV) (see Table 2) reached RM3.8bn from RM2.2bn in 3Q23 (+70% YoY), while market velocity rebounded to 43% (3Q23: 30%). Additionally, ADTV for 9M24 saw a 69% improvement, rising to RM3.6bn from RM2.1bn in 9M23, driven by positive sentiment over the equity market. However, we saw a QoQ decline in ADTV (-3% QoQ), due to lower average daily trading volume reported in 3Q24 of 4.3bn (-17% QoQ) vs 5.2bn in 2Q24. Nevertheless, the Securities Trading segment reported positive QoQ growth, attributed by higher trading days (3Q24: 64 days, 2Q24: 59 days).

• Earnings Revision. No change to earnings estimates.

• Outlook. We remain optimistic about stronger YoY earnings growth in 4Q24, though we anticipate slower QoQ growth due to moderate trading activities during the year-end holiday season. Furthermore, management expresses confidence in achieving all headline KPIs for 2024 (see Table 3), supported by robust economic activities.

Source: BIMB Securities Research - 30 Oct 2024