Silverlake Axis / Goh Peng Ooi

Re: Silverlake Axis

Postby winston » Thu Jan 07, 2016 1:56 pm

What's new?

The Deloitte Report (DR) to review Silverlake's related party transactions and the silverlake private entities was released yesterday evening. The report found no impropriety with regards to the related party transactions and these transactions were in accordance with statutory and listing requirements and beneficial to Silverlake.

Our initial take

1 ) There should be a positive reaction tomorrow as the report was delayed and there were some initial speculation that were more issues or problems surfacing. However, DR has confirmed there is no impropriety in their review. However, DR did indicate that the valuation that Silverlake paid for the acquisition of QR (retail solutions provider) was on the high end and "QR has not been a strong performer".

2) longer term, the DR has proposed some steps to be taken to address and improve transparency (such as establishment of a sub contractor prequalification process). Assuming the group adopts these proposals and perhaps relook at it'd complex corporate structure, we think there could be a gradual rerating.

3) In terms of potential catalysts ahead, i think the major shareholder will need to consistently engage the investment community. Otherwise, we also need to see more evidence of banks spending on IT upgrades before a further rerating as banks have been quite cautious on major upgrades. Also, another potential catalyst is upside surprise from its China associate and it's insurance segment.

We maintain our Hold pending more information and a DCF based target price of $0.66. This assumes a 6% discount rate, which include an additional 1ppt to reflect a higher risk premium. Should the group regain investor trust and the 1ppt risk premium is removed, the target price for Silverlake rises to S$0.77.

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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Wed Jan 13, 2016 8:45 am

not vested

Silverlake cleared of dubious deals

KUALA LUMPUR: An independent review by Deloitte Singapore has cleared software solutions provider Silverlake Axis Ltd and its founder Goh Peng Ooi of allegations of dubious business deals.

The Singapore-listed company had engaged Deloitte’s services following damaging allegations made in an anonymous online report titled “The Unbelievable Financial Alchemy of Silverlake Axis” on Aug 20, last year.

The executive report by Deloitte has been posted on Silverlake’s website.

“The board is of the view that the executive report clearly bears out that there was no impropriety in connection with the transactions reviewed and that these were undertaken in due compliance with applicable statutory and listing requirements and were beneficial to the company,” the firm said in a statement accompanying the report.

Last year, a 42-page anonymous report authored by a “razor99” had alleged foul play in certain interested-party transactions entered into between Silverlake and private companies controlled by Goh, and three acquisitions made by the group.

By mid-day the next day, the damage had been done, with the allegations reportedly causing the company’s share price to fall as much as 27% in intraday trade on Aug 21 and prompting the stock exchange to query the company over the unusual share-price movement.

Silverlake then asked for a halt in the trading of its shares.

Goh, who is the founder of the group, saw his wealth reduced by 43% or RM2.75bil between July 15 and Aug 26 last year after his shares tanked.

As of Aug 26, Goh’s net worth was about RM2.44bil based on his 66.4% stake in Silverlake.

The executive report by Deloitte explored the firm’s interested person transactions between July 1, 2012 and June 30, 2015 and tested samples of their transactions.

It conducted background searches and reviewed financial statements of Silverlake Private Entities (SPEs) or private companies controlled by Goh, which were customers or suppliers to the group.

It also performed data analysis to highlight any trends, patterns of behaviour or irregularities in the three interested person transactions – one in 2006 and two others in 2010.

“In all three acquisitions, Silverlake Axis Ltd has complied with all of the requirements of the SGX listing rules,” stated the report.

However, it made several observations and recommendations as to how to the group could enhance clarity and transparency in interested party transactions.

It said Silverlake and the private companies involved had “a number of common third-party customers” and during the review period, there had been several situations where the companies signed a contract with the end customer and then procured products and services from Silverlake, giving rise to an interested person transaction.

“Given the significance of the values of these contracts, there should be better clarity and transparency in the determination process of whether the Silverlake Group or the SPEs would be the contracting party with the end user customer,” it said in the report.

Source: The Star
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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis

Postby winston » Thu Feb 25, 2016 9:49 pm

One of the hardest hit on this year's list was technology tycoon Goh Peng Ooi, founder and major shareholder of Singapore-listed Silverlake Axis Ltd, who dropped out of the billionaire ranks after his wealth dropped 53% to US$725 million (RM3.05 billion).

Goh had a net worth of US$1.55 billion a year ago, but in August his stock fell after an anonymous short-seller said his financial software company, Silverlake Axis, inflated its results.

Source: Forbes
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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis / Goh Peng Ooi

Postby winston » Mon Aug 29, 2016 8:14 am

not vested

Silverlake Axis posts 3% earnings rise in 4Q to $26 mil

By Gwyneth Yeo

SINGAPORE (Aug 26): Silverlake Axis has reported earnings of RM77.2 million ($26 million) for 4Q16, a 3% improvement from the earnings of RM74.7 million in 4Q15.

During the quarter, revenue rose 32% to RM166.9 million due to the higher contribution from all of its business segments except the software project services segment, and from the appreciation of the Singapore dollar and the US dollar against the ringgit.

In particular, revenue from maintenance and enhancement services increased 45% to RM98.1 million from the larger numbers of contracts secured, and the consolidation of Symmetri Group's maintenance and enhancement revenue.

Software licensing revenue was 41% higher from higher value software licensing contracts which were completed during the quarter. The group also benefited from a major sale of hardware products.

Gross profit margins rose 5 percentage points to 66% from the higher proportion of higher margin software licensing sold and higher margins achieved from its software project services.

Other income of RM7.4 million was 69% lower, due to the one-off accounting gain of RM19.2 million from the dilution of interest in Global InfoTech Co (GIT) and the fair value adjustment for the acquisition of Merimen recorded in 4QFY15, which were not repeated in the current quarter.

Silverlake says that the cautious business outlook during the year has led to a slowdown in major core IT replacement or upgrades, as financial institutions in South East Asia have started to adopt a more careful approach to large IT expenditure.

However, it is still working its customers to enhance their core IT systems for greater efficiency and to deliver new capabilities, it adds.

For the full year to June, the group posted a 3% dip in earnings to RM 273.8 million.Revenue increased 23% to RM636.3 million.

The group has declared a final dividend of 1 cent for the full year.

Shares of Silverlake Axis closed unchanged at 58.5 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/s ... -4q-26-mil
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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis / Goh Peng Ooi

Postby winston » Mon Aug 29, 2016 8:31 am

May 12, 2016

not vested

3QFY16 in line

3QFY6/16 core net profit in line with our forecast but below consensus. 9MFY16 core net profit within expectations, at 73% of our FY16 forecast.

FX impact contributed 9% to the yoy increase in 3QFY16 revenue.

0.65 Scts DPS declared, translating to 83% payout ratio.

Balance sheet in net cash position at end-3QFY16.

Upgrade to Add as total return exceed 10% once again; recent share price fall mirroring weak global sentiment on equities.

Upgrade to Add

Silverlake’s balance sheet remains net cash at end-Mar 2016 and a DPS of 0.65 Scts was declared for 3QFY16, representing a payout ratio of 83% of 3QFY16 earnings.

With the share price having taken a tumble in line with weak equities markets globally, total return has once again exceeded 10% and hence, we upgrade our call from Hold to Add. Our target price is based on DCF.


Source: CIMB

https://brokingrfs.cimb.com/s5EkfyCeWOw ... hdfQA2.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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis / Goh Peng Ooi

Postby winston » Mon Aug 29, 2016 11:54 am

vested

FY16 in line

FY6/16 core net profit in line with our forecast at 103% of our full-year forecast.

FX impact contributed 9% to the yoy increase in FY16 revenue.

1.0 Scts DPS declared for 4Q16, translating to 103% payout ratio.

Balance sheet in net cash position at end-FY16.

Maintain Add with higher target price of S$0.68 as we roll over our DCF valuation to FY17.

Short-term share price catalysts

In 1HFY17, short-term catalysts include
1) possible order wins in Malaysia and Thailand (bidding is in progress),
2) small acquisitions to expand Merimen’s insurance processing business into China, and
3) special dividend possibility when 1Q17 results are announced.

Silverlake sold 1m Global Infotech shares in Jun amounting to 1.46 sen per Silverlake share.

Our FY17 DPS forecast of 9.87 sen excludes any special dividend.

Silverlake intends to dispose of another 7m GIT shares in FY17.


Maintain Add

We introduce FY19 forecasts. Our DCF-based target price rises to S$0.68 (WACC:11.6%) as we roll-over to FY17. FY17-18 EPS forecast changes reflect changes in revenue mix and better clarity on cost structure with the completion of the Symmetri acquisition.

Potential re-rating catalysts include significant order win announcements, elimination of interested party transactions and special dividends.

Key risk is pullback in customers’ rollout schedules.


Source: CIMB

https://brokingrfs.cimb.com/L53DybN5Eb_ ... q_qMA2.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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis / Goh Peng Ooi

Postby winston » Tue Aug 30, 2016 8:52 am

vested

Why Silverlake Axis is still a ‘like’

By Michelle Zhu

SINGAPORE (Aug 29): CIMB and RHB are keeping their “buy” calls on Silverlake Axis with higher target prices of 68 cents and 77 cents respectively.

Both research houses say the software company’s FY16 results came in line with their expectations.

Silverlake last week posted a 23.3% rise in FY16 earnings to RM636.3 million ($214.3 million) from RM$516 million a year ago.

(See Silverlake Axis posts 3% earnings rise in 4Q to $26 mil)

“Going forward, we expect its business to remain resilient, with strong growth continuing to stem from its credit card processing, insurance as well as the maintenance and enhancement segments,” says RHB analyst Jarick Seet in a Monday report.

This is because Seet expects banks to continue investing more on maintenance enhancement services, such as those provided by Silverlake, in FY17, even as they cut back on large capex spending.

He opines that the company’s management appears bullish on its insurance business segment, as it expects this particular segment to continue growing organically at 20% per annum for the next few years in terms of topline.

The analyst also believes that a special dividend for 1Q17 is likely to be next on Silverlake’s cards.

“Silverlake sold 2 million Global Infotech Co (GIT) shares, and management has shared that it will likely sell more by 1Q17,” he elaborates. “With no excess use of the cash, a special dividend to reward shareholders seems very[b] likely by 1Q17.”[/b]

Although CIMB analyst William Tng concurs that a special dividend is possible, the research house’s FY17 DPS forecast of 9.87 sens has excluded it.

In a Friday report, Tng adds that other short-term share price catalysts for Silverlake in 1H17 include possible order wins in Malaysia and Thailand, as well as small acquisitions to expand the insurance processing business of Silverlake’s subsidiary Merimen, into China.

“Pending [the return of stronger spending in IT capex at banks], Silverlake is strengthening its capabilities in MES as well as expanding the market share of its previous acquisitions, Cyber Village, Merimen and Symmetri group,” he notes.

Shares of Silverlake closed 3.4% higher at 60 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/w ... 0-87358173
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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis / Goh Peng Ooi

Postby winston » Wed Aug 31, 2016 12:37 pm

vested

Time: 11:36AM
Exchange: SGX
Stock: Silverlake Axis(5CP)
Signal: Resistance - Breakout with High Volume
Last Done: $0.645

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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis / Goh Peng Ooi

Postby winston » Fri Sep 02, 2016 12:33 pm

vested

Silverlake Axis pares exposure on Global Infotech

Silverlake Axis reduced its stake in Global Infotech from 18.53% to 17.79%.

Silverlake Axis group will book an estimated gain of about RMB31.13mil from the disposal.

Proceeds from the disposal will be used for general working capital, special dividends, paying off debt and other business opportunities "as and when they arise", this according the company statement.

Source: DBS
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: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Silverlake Axis / Goh Peng Ooi

Postby winston » Mon Nov 14, 2016 9:51 am

not vested

1Q17 core earnings disappoint

1QFY6/17 core net profit made up just 8% of our full-year forecast (vs. 20% historically for the first quarter).

A one-time gain of RM143.8m from the sale of GIT shares boosted reported profit.

A 0.5Scts DPS was declared for 1Q17.

The balance sheet was in a net cash position at end-1Q17.

Maintain Add with a lower target price of S$0.67 based on DCF (WACC 11.6%)

Source: CIMB

https://brokingrfs.cimb.com/hwUvvjzgH4J ... 0wtHg2.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: 118528
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to S to T

Who is online

Users browsing this forum: No registered users and 11 guests

cron