Sharechat Logo

Daily ShareChat: NZX

By Jenny Ruth

Friday 25th March 2011

Text too small?
 Jenny Ruth

NZX's net profit of $11.3 million for calendar 2010 before asset gains and losses was $0.8 million above his forecast, says Guy Hallwright, an analyst at Forsyth Barr.

"Fourth quarter revenues were higher than we expected from listings, post-trade services, boosted by the new clearing house, and agri information and trading," Hallwright says.

"There has been a pick-up in revenues in NZX's core financial markets business in the last two quarter, after a long flat period since the GFC (global financial crisis), due to the new clearing house, higher initial and secondary listing revenues in the fourth quarter and increases in annual listing fees."

After NZX released details of its revenue and cost expectations, Hallwright raised his 2011 net profit forecast by 18% to $17.6 million and his 2012 forecast by 12% to $19.2 million.

He has also raised his valuation by 40 cents to $2.57 per share.

"NZX's revenue mix has shifted towards lower-volatility sources: annual listing and participant fees, energy contracts, publication and data subscriptions and fund management fees," Hallwright says.

"There is significant upside potential from NZX's expansion into agriculture, energy, commodities and derivatives which should be reflected in NZX's share price as visibility on revenue and earnings growth improves," he says.


Recommendation: Buy.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls, NZX suspends trading after 6.2 magnitude Wellington earthquake
Cash trading on New Zealand stock exchange surges in first half, driven by equities
NZX cash trading tops $5 bln as MightyRiverPower listing beefs up market
NZX cash trading value jumps by 58 percent in February from a year earlier
NZX looks to launch spot gas market in June
NZX full-year profit falls 32 percent
NZX boss Bennett rounds out 2012 filings with $1.87M share acquisition
Equity trading jumps in NZX cash market as NZX 50 nears 5-year high
NZX names Amelia Wong as head of cash markets
NZX rings more changes as PR chief Macrae exits