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6 Must-See Slides from Singapore Exchange Limited’s Presentation

Recently, Singapore Exchange Limited (SGX: S68) released its presentation slides for one of its investor relations events, SGX – MKE Singapore Corporate Day 2017.

From there, I picked out six slides that I thought would interest investors. The first three can be found here.

The fourth slide talks about the geographies of businesses listed on the SGX.

Source: Singapore Exchange Limited SGX – MKE Singapore Corporate Day 2017 Presentation Slides

Out of the 754 companies listed on the stock exchange, around 272 of them are overseas companies. China takes up the bulk of the companies, at 40%, followed by Hong Kong (15%).

In comparison, SGX’s closest competitor in the region, the Hong Kong Stock Exchange, has 95% of companies from China.

Over in the UK, 81% of the companies listed on the London Stock Exchange are UK-based.

The next slide shows the key stocks covered in SGX and the respective valuations, as of July 2017.

Source: Singapore Exchange Limited SGX – MKE Singapore Corporate Day 2017 Presentation Slides

The largest sector, in terms of market capitalisation, is real estate. This sector comprises of real estate companies and property trusts such as CapitaLand Limited (SGX: C31), City Developments Limited (SGX: C09), and Ascendas Real Estate Investment Trust (SGX: A17U).

The next largest sector is consumer, followed by technology.

Last but not the least, the financial performance of the company over years are shown in the upcoming slide.

Source: Singapore Exchange Limited SGX – MKE Singapore Corporate Day 2017 Presentation Slides

SGX’s revenue has increased from S$714 million in FY2013 to S$801 million in FY2017 but its operating profit declined from S$413 million to S$402 million during the same period. This has caused the operating profit margin to slip from 58% in FY2013 to 50% in FY2017.

Investors might want to keep a close eye on the figure as slipping operating profit margins may mean that SGX is unable to reign in its operating expenses.

Net profit and earnings per share (EPS) have been somewhat flat from FY2013 to FY2017.

Despite the unchanged EPS over the years, the stock market operator has been paying consistent dividends of 28 cents per share. This is due to its dividend policy of paying out “as dividend an amount which is no less than 80% of the annual net profit after tax or 20 cents per share, whichever is higher”.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.