Silverlake Axis / Goh Peng Ooi

Silverlake Axis / Goh Peng Ooi

Postby winston » Tue May 13, 2008 10:47 am

Not vested

Silverlake 3QFY2008 results
Previous Day Closing price: $0.325
Recommendation: Buy (maintained)
Target price: $0.56 (reduced from $1.00)

We are maintaining our BUY call on the stock. However, we are revising our target valuation down from 18x to 12x earnings instead, leading to a price target of S$0.56.

Earnings fell from high base, slower contract award

3Q08 earnings fell 37% YoY to RM20m. There were two primary contributing factors. One, 3Q07 was an exceptionally high base to compare against, and two, pipeline customers were slower in awarding projects than usual due to the slower economic climate.

Nine months’ profit however is up 25% YoY to RM97m, which is 21% above full year 2007 earnings. During 3Q08, Silverlake recognised only RM15m of SIBS licensing fees (two small contracts in Thailand and Philippines and one small upgrade contract).

Reducing forecasts on longer sales cycle

According to management, bank budgets are stable if not rising for mission-critical software such as core banking. However, customers are lengthening the sales cycle, and taking longer to assess options (eg upgrade or replace).

There is the possibility that a “large” upgrade contract by a regional bank, originally scheduled for 4Q08, may be delayed to 1Q09. We are taking a conservative view and adjusting our forecast accordingly. Therefore, we now expect full year earnings of RM121m, down from RM144m previously.

Exploring quarterly dividends, share buyback to support stock

Silverlake announced its first quarterly dividend of 0.5 Singapore cents a share, on top of the 1.5 cents in 1H08. In future, the company intends to pay quarterly dividends from its cash hoard of some RM80m now.

Assuming a payout ratio of 55%, FY08 yield is very attractive at almost 8% based on forecasted DPS of 2 cents a share. In addition, it intends to table a share buyback resolution for shareholders approval at the next AGM in July.

Pipeline healthy enough to support price hike

Also, Silverlake intends to propose a repricing of its software in S$ instead of US$, which will result in a 15% average price increase, inline with a general rise in banking software prices worldwide.

Management did not see this impacting its existing pipeline as existing competitive bids will still be at the old prices but future projects, perhaps from 2Q09 onward, should command higher prices.

Maintain BUY on lower target price
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake

Postby winston » Thu Oct 14, 2010 8:49 am

Not vested

SILVERLAKE AXIS - Software services firm Silverlake Axis said on Wednesday it had secured a three-year S$30 million ($23.04 million) contract from one of the largest regional banks in Southeast Asia to upgrade its banking system.

Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Fri Dec 24, 2010 8:44 am

Not vested

Software services firm Silverlake Axis said on Thursday its controlling shareholder Intelligentsia Holding had sold 50 million vendor shares, around 2.39 percent of its issued shares, at S$0.32 per share.

Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Fri Feb 17, 2012 2:29 pm

not vested

Shares of Singapore-listed software firm Silverlake Axis Ltd surged as much as 16 percent, after DBS Vickers reinstated coverage with a buy call, saying it was a growth stock with quarterly dividends.

Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Thu Sep 04, 2014 5:53 pm

not vested

Silverlake Axis - Bank on IT; upgrade to BUY.
(SILV SP/BUY/S$1.155/Target: S$1.45)

We see strong medium/long-term growth drivers for the group and a sustainable mid-teens growth for its recurring M&E services revenue (42%
of group revenue).

We also like its perfect execution record, strong cash generation capabilities and high payout…


Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Mon Feb 16, 2015 6:35 pm

not vested

Silverlake Axis (SILV SP, SELL, TP: SGD1.13)
Still a Tad Too Expensive
Results Review

2Q15 revenue slipped 1% YoY to MYR124.1m while NPAT grew 18% YoY to MYR71.6m. Maintain SELL.

We assign a 10% premium to its peers (21x 2014 P/E) on its higher NPAT growth of 15-20%, lifting TP to SGD1.13 (23x 2014 P/E) from SGD1.03
(13.1% downside).

Yet, the current price levels are still a tad too expensive.

The evident slowdown in revenue growth, which may fall short of consensus’ MYR561m target on major sizeable order wins, may limit future
earnings growth.

Source: OSK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Tue Mar 03, 2015 3:36 pm

not vested

Silverlake Axis (SILV SP): 1HFY15: Results Broadly Within Expectations

1HFY15 net profit grew 18% yoy on the back of its winning business model.

The maintenance and enhancement segment continues to propel the group forward as net margins improve.

In addition, we note that the group is in a good position to capitalise on any potential banking consolidations within Indonesia.

Maintain BUY with a DCF-based target price of S$1.66

Source: UOBKH

http://research.uobkayhian.com/content_ ... afe1f2e831
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Tue Mar 03, 2015 3:55 pm

Feb 11, 2015

Silverlake Maintains Healthy Profit Growth in 1H FY2015

Revenue +6% to RM240.9 Million and

Net Profit +18% to RM131.3 Million

Group revenue increased on higher contributions from software licensing and maintenance and enhancement services

Gross profit increased 16% to RM158.0 million in 1H FY2015 and gross profit margin rose to 66% with improved contribution from higher margin activities

The Group maintained a strong statement of financial position with a comfortable net cash position of RM334.3 million as of 31 December 2014

The Board has proposed a second interim dividend of Singapore cents 1.1 per share, an increase of 22% over the previous corresponding period

http://infopub.sgx.com/FileOpen/Silverl ... eID=334509
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Mon May 18, 2015 9:12 pm

Expect more MES revenue

At 77% of our FY15 forecast, 9MFY6/15 core net profit of RM202m (+20% yoy) was in line with our expectation but below consensus.

Silverlake continues to enjoy gross margin expansion on higher contribution from maintenance and enhancement services (MES).

Going forward, it has guided for moderation in core software upgrades as banks opt for selective module upgrades/additions.

3QFY15 DPS was raised to 1.1 Scts. We keep our forecasts and Reduce call.

Our DCF-based target price drops to S$0.97 (WACC 7.5%) as a result of the increased share base and a weaker ringgit.

The slight decrease in core EPS is due to the issuance of shares under the company’s Performance Share Plan.

A 1-for-5 bonus sweetened 3Q15. Potential de-rating catalysts include continued lack of order wins.

Source: CIMB

https://brokingrfs.cimb.com/NHwf-vF7v8B ... 4Lg9Q1.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Fri May 22, 2015 11:04 am

not vested

Silverlake Axis- A solid buying opportunity.
(SILV SP/BUY/S$1.20/Target: S$1.66)
FY15F PE (x): 25.1
FY16F PE (x): 21.8

Silverlake’s (SILV) share price declined 8% on the back of allegations made by subscription-based website, Bamboo Innovator, that the group could have possibly
undertaken the following:
a) “numerous opaque and complex related-party transactions acquisitions at inflated valuations”,
b) “possible abuse of the pooling-of-interest method to report higher earnings in 2006 and 2010”, and
c) “fraudulent opportunity presented in shifting costs from the listed Silverlake Axis to these private entities to artificially inflate the profit and market value”.

The truth lies in cashflow. We note that since SILV’s IPO, the group has raised only a total of S$75m as compared with having paid out an estimate of more than
S$280m in dividends.

We note that SILV has been able to pay out more than 40% in dividend annually since it listed, with recent payout ratios in FY13 and FY14 of 87% and 105%
respectively.

In addition, with the exception of FY05, SILV has consistently generated positive operating and free cashflow.

In FY14, the group recorded net operating cashflow of RM280.4m.

Should the allegations that profits were inflated be true, we believe the group would not have been able to pay out such consistently high dividends over the past
12 years.

Maintain BUY with a DCF-based target price of S$1.66/share. SLV remains on our BUY list for its superior business model (with high recurring earnings) and
strong cashflows.

Despite trading at 21.8x FY16F PE, above its peer’s average of 17.9x, SILV’s expected FY16F ROE of 48.9% and dividend yield of 4.0% are much higher
than its peers’average of 23.8% and 1.6% respectively

Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 106964
Joined: Wed May 07, 2008 9:28 am

Next

Return to S to T

Who is online

Users browsing this forum: No registered users and 2 guests

cron