Bursa Malaysia Bhd is a holding company responsible for the stock exchange of Malaysia. Most of us know that Bursa Malaysia obtains the majority of its earnings is derived by charging individuals a brokerage fee when an individual buys or sells a share. Bursa Malaysia also earns some of its revenue through IPOs and listing of company equities to the share market.
Bursa Malaysia Bhd also offers derivatives market trading. Under the derivatives segment products such as Gold futures, Crude Palm Oil Futures (FCPO), Options on Crude Palm Oil Futures (OCPO).
Bursa Malaysia Bhd is the sole company in Malaysia that has been empowered to manage the stock exchange and also the derivatives market, making it the sole monopoly in this business segment!
Dividends (5/5): ⭐ ⭐ ⭐ ⭐ ⭐
Value (4/5): ⭐ ⭐ ⭐ ⭐
Financials (5/5): ⭐ ⭐ ⭐ ⭐ ⭐
Growth (4/5): ⭐ ⭐ ⭐ ⭐
Business (5/5): ⭐ ⭐ ⭐ ⭐ ⭐
Historical Operating Revenue
Historical Net Profits
Historical Dividends Paid
Source: BURSA MALAYSIA BHD ANNUAL REPORT
Being the only party in charge of managing the Malaysia stock exchange, Bursa Malaysia Bhd has enjoyed wonderful returns year on year. Revenue and profits have increased in tandem, which is a no brainer.
Bursa Malaysia Berhad is a special company in a highly regulated business segment. Being a service orientated company, where it facilitates equities and derivatives trading, makes it an asset-light company, without needing to buy machinery and building to further scale its business.
Comparatively, against its peer in Singapore, SGX Limited, there is more potential for Bursa to grow more. And when a cash cow company like Bursa Malaysia Berhad grows, the dividend payout would definitely increase in tandem, given that it has a 75% dividend payout policy.
The question is, what price would you consider to buy Bursa Malaysia Berhad?