Singapore Exchange – 50 Hits To Bottom-Line

Singapore Exchange – Another SPAC Wrench

Singapore Exchange – Solid Quarter, But SPAC Setback

Singapore Exchange - Another Deal, Another Distraction

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Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

*Poor Result: Singapore Exchange (SGX.SP) [SGX] reported a weak FY 2H21 result, declining SGD 35.0 mn (14.6%) on an HOH basis. Higher than expected costs was the primary culprit for the overall disappointing result, increasing SGD 28.7 mn (11.6%) HOH pushing the expense to revenue ratio 410 bp higher to 51.8%. Cost pressures will not end, as SGX gave guidance that costs are due to increase between 9%-11%, as revenue begins to contract; and*Peripatetic: Recently, SGX announced its acquisition of MaxxTrader, its third acquisition after BidFX and Scientific Beta in 2020. Management is also considering getting involved Special Purpose Acquisition Companies (SPACs). Significant strategic alternatives are needed at SGX, if it is to avoid being hollowed out by the Hong Kong Exchanges &amp; Clearing (388.HK).

*Poor Result: Singapore Exchange (SGX.SP) [SGX] reported a weak FY 2H21 result, declining SGD 35.0 mn (14.6%) on an HOH basis. Higher than expected costs was the primary culprit for the overall disappointing result, increasing SGD 28.7 mn (11.6%) HOH pushing the expense to revenue ratio 410 bp higher to 51.8%. Cost pressures will not end, as SGX gave guidance that costs are due to increase between 9%-11%, as revenue begins to contract; and*Peripatetic: Recently, SGX announced its acquisition of MaxxTrader, its third acquisition after BidFX and Scientific Beta in 2020. Management is also considering getting involved Special Purpose Acquisition Companies (SPACs). Significant strategic alternatives are needed at SGX, if it is to avoid being hollowed out by the Hong Kong Exchanges &amp; Clearing (388.HK).

Singapore Exchange – Completely Distracted