Apex planned to increase its institutional sales contribution to 50% of brokerage income to achieve a more balanced income mix.
PETALING JAYA: Apex Equity Holdings Bhd
is looking to diversify its brokerage income streams by enhancing its institutional offerings, according to TA Research.
Apex, which also operates property holding and development, as well as money lending businesses, planned to increase its institutional sales contribution to 50% of brokerage income to achieve a more balanced income mix.
At present, the retail segment dominates Apex’s brokerage income, accounting for 90%, the research house said in its report yesterday.
TA Research recommended a “buy” on Apex, with a target price of RM1.35.
Among the key strategies, Apex is expected to expand its institutional client base to leverage on the extensive network of its group executive chairman Datuk Wira Farhash Wafa Salvador and group executive director Datuk Zakaria Arshad.
In addition, Apex is also expected to bolster its institutional sales teams and reinforce support for the research department, it said.
“While recognising the competitive nature and narrow margins in the institutional segment, management is optimistic about the potential of increased trading volumes in this sector.
“Given the fierce competition the retail segment faces from new online trading platforms like Moomoo and Rakuten Trade, the decision to bolster its presence in the institutional segment is strategic,” it said.
Apex remained committed to maintaining and growing its retail base.
“To achieve this, Apex plans to enhance its remisier network, currently at 80, and target high-net-worth individuals. Efforts will also focus on lowering the age profile of remisiers. Incentives for remisiers will include competitive commissions and attractive prizes to foster healthy competition.
“Apex aims to expand its branch network beyond the current six branches to other strategic locations across the country such as Melaka, Johor Baru, Penang, the Klang Valley, East Coast, Sabah and Sarawak,” TA Research added.
