BURSA Malaysia Bhd reported 3QFY25 net profit of RM63.8m (+11.9% quarter-on-quarter (QoQ); -25.5% year-over-year (YoY), while 9MFY25 net profit came in at RM189.3m (-21.3% YoY).
Although 9MFY25 results accounted for 71.4% of our FY25F forecast of RM265.2m, we deem the results in line with our expectations and consensus estimates on the back of a potentially stronger 4Q25.
The sequential recovery in results was largely due to an 18.5% QoQ rebound in equity market average daily value, which was underpinned by a 10% QoQ increase in securities market operating profit.
Following upward revisions of 7.8% and 11.5% to our FY26F and FY27F net profit forecasts, we raise our target price to RM8.86, transitioning from a discounted cash flow-based methodology to an FY26F price earnings ratio target multiple of 25.0x (0.5 standard deviation above 10-year mean).
Coupled with a fairly attractive FY26F dividend yield of 4.0%, total return on the stock now stands at +10.5%, justifying an upgrade to Buy from Hold.
— CIMB Securities Sdn Bhd (Oct 31, 2025)
