RHB lifts SGX target to $16

The updated valuation is based on FY26 earnings and a higher price-to-earnings multiple of 23.5 times.

RHB has raised its target price for Singapore Exchange (SGX) to $16 from $14.10, reflecting a 5.5% potential upside from its current price of $15.20.

The updated valuation is based on FY26 earnings and a higher price-to-earnings multiple of 23.5 times, up from 22 times previously. This figure includes a 4% ESG premium, signaling investor confidence in SGX’s sustainable practices and long-term growth prospects.

RHB maintains a Neutral rating, noting that much of the near-term optimism may already be factored into the price.

The upgrade comes as SGX posted strong securities trading volumes in April 2025, with daily average value hitting $1.9b—the highest since March 2020.

However, trading activity has slowed in recent months, with May and June seeing lower SDAVs of $1.3b and an estimated $1.2b, respectively. Whilst full-year FY25 SDAV is still expected to grow 26% YoY, the recent pullback led RHB to trim its FY25 turnover forecast and reduce its profit estimate by 1%.

Despite the short-term dip, structural drivers remain intact. SGX is set to benefit from the Monetary Authority of Singapore’s $5b Equity Market Development Programme, which aims to boost investor participation beyond the benchmark STI stocks.

This initiative, along with increased share buybacks and Singapore’s appeal as a financial safe haven, supports the exchange’s medium-term growth trajectory.

Financially, SGX continues to show solid fundamentals. Recurring net profit is projected to rise 18.3% in FY25 to $631m, with further growth expected into FY26 and FY27.

Dividend yields are forecast to inch up gradually from 2.4% in FY25 to 2.6% in FY27, whilst capital expenditure is expected to remain at the lower end of guidance due to disciplined cost management and ongoing technology upgrades.

On the ESG front, SGX maintains a strong performance with an overall score of 3.3 out of 4. The exchange is committed to a 42% reduction in Scope 2 emissions by FY31 and continues to lead in sustainable finance initiatives.

As of June 2024, sustainability-themed ETFs listed on SGX had a combined AUM of $927m, and 15% of new FY24 listings were green or sustainability-linked bonds. SGX also continues to enhance transparency and carbon reporting through new systems and climate transition plans.

Overall, whilst near-term trading momentum has moderated, SGX’s strategic positioning, ESG leadership, and long-term growth outlook justify the upgraded valuation.

RHB believes the exchange remains a stable play in a volatile global market, though it stops short of issuing a buy call due to already strong share price gains.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia