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Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Thu Mar 28, 2019 10:50 am
by winston
not vested

Silverlake Axis (SILV SP) Buy (Maintained)
Solid In 2019; Keep BUY Target Price (Return) SGD0.65 (+18%)
Price: SGD0. (+18%) 55
Market Cap: USD1,075m
Avg Daily Turnover (SGD/USD) 0.7m/0.5m

Keep BUY on this country pick, SGD0.65 TP offers 18% upside plus 4% FY19F yield.

Silverlake Axis’ 2QFY19 revenue/PATMI surged 28%/84% YoY, mainly on wider margins
stemming from licensing revenue jumping 98% YoY as it continued to implement a major Malaysian contract.

This outperformance should continue into the rest of 2HFY19, which may lead to stellar
results again, in 3QFY19.

We expect 3QFY19 to be upbeat, on continued margin improvement and a positive PATMI uptrend.

Source: RHB ... ff1cdd.pdf

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Sat Jun 22, 2019 6:42 am
by winston
not vested

Silverlake Axis on track for solid FY19, says RHB

by Samantha Chiew

SINGAPORE (June 20): RHB Research is keeping Silverlake Axis as its top pick in Singapore and in the technology sector, as the digital economy solutions and services provider stays on track to finish the year on a high.

“With improving fundamentals and strong earnings growth as of 9M19, Silverlake Axis is on track to record a robust FY19,” says lead analyst Jarick Seet in a Wednesday report.

“We expect the sturdy growth in earnings and margins to continue into 4Q19, as it continues to execute the major Malaysian core banking contract,” he adds.

The group saw its PATMI surge 77% y-o-y in 3Q19, as margins from licensing revenue growth nearly doubled, while revenue rose 12% y-o-y.

And Seet expects Silverlake to continue on this trajectory to see similar growth for 4Q19.

“Silverlake should book a positive 4Q19F performance, on continued margin and positive PATMI growth,” he says.

RHB is maintaining its “buy” rating on Silverlake Axis with an unchanged target price of 65 cents, representing an upside of 18%.

Looking ahead, the analyst says potential large order wins from the region could lift Silverlake’s PATMI even further.

“With banks budgeting for more IT investments, especially in Indonesia and Thailand, we understand management is actively in talks with a few potential new and existing customers,” Seet says.

Silverlake has signalled that it is confident of securing additional large-sized contracts by the end of 2019, which Seet believes should further contribute towards PATMI growth in FY20-21.

As at end 3Q19, Silverlake’s orderbook stood at RM250 million.

At the same time, the management has said that it intends to reward shareholders with better dividends.

The group declared distribution per share of 0.4 cents in 3Q19, 33% higher than DPS of 0.3 cents a year ago. And the management has guided that it will likely look to increase the payout ratio further for 4Q19.

Historically, the group has paid over 80% of earnings as dividends.

“In addition, we believe Silverlake will likely engage in more share buybacks, similar to what was done in 2018 – which is a positive,” says Seet. “Due to previous share buybacks, we expect its dividend payout ratio for 2H19 to be 60-70%, resulting in a projected FY19 yield of 4%.”

As at 1.15pm, shares in Silverlake are trading flat at 55 cents, or 7.7 times FY19 book.

Source: The Edge ... 401b309bc7

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Thu Jul 11, 2019 10:58 am
by behappyalways
Silverlake Axis announces 6 new contracts wins ... racts-wins

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Sat Aug 24, 2019 4:41 pm
by behappyalways
Silverlake Axis posts 86% increase in 4Q earnings to $22.3 mil on higher sales, other income ... her-income

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Mon Aug 26, 2019 11:30 am
by winston
not vested

Take a breather

4Q19 NP was in line with our expectations, but below Bloomberg consensus.

Although SILV’s orderbook backlog of c.RM260m remains healthy, the absence of large-sized project wins could pressure margins in FY20F.

We also lower our dividend payout expectations as SILV is reserving cash for further M&As.

Resume coverage with a Hold rating and TP of S$0.53.

Source: CIMB ... WZuJQ2.pdf

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Fri Feb 14, 2020 1:22 pm
by winston
not vested

Silverlake Axis (SILV SP): BUY
Market Cap: US$704m | Average Daily Value: US$0.67m
Last Traded Price: S$0.370;
Price Target: S$0.48 (Upside 30.2%) (Prev S$0.57)

Healthy margins despite higher tax
2QFY20 results in line; higher tax rate to be the norm
Growth from recurring income segments offset weaker revenue from project related divisions
Larger projects on hold, to be replaced by smaller ones
Cut FY20-21F earnings by 8-13%; maintain BUY with a lower TP of S$0.48

Maintain BUY with lower S$0.48 TP. We cut FY20-21F earnings for Silverlake (SAL) by 8-13% on higher tax rate assumption and lower project related revenue. Even though tax rate ahead is expected to be high at c.29%, net margin is still in excess of 20%.

We continue to like Silverlake for its high recurring revenue proportion that forms at least 60% of total revenue, and high gross margins of c.60% with attractive yield of c.4%, on a 60% payout ratio.

Larger projects on hold, to be replaced by smaller ones. There is an increasing trend to spend on incremental enhancements as opposed to the larger one-off projects. Though the deal pipeline is healthy at c. RM1.5bn, the award of larger contracts in excess of RM100m has been slow.

To close the gap, the group is targeting smaller contracts of c.RM10m each and these include digital contracts which are generally smaller in size. With these smaller contracts, orderbook backlog is maintained at close to RM300m.

Where we differ: We remain optimistic on SAL’s business given its market leader position in the core banking solutions, and Insurtech.

Potential catalyst: Securing more and bigger value contracts.

Maintain BUY with lower TP of S$0.48. We reduced our FY20F/21F earnings by 13%/8%, mainly on higher tax rate assumption and lower project related revenue. As such, our TP is reduced to S$0.48 (vs S$0.57 previously), still pegged to peers’ average of 21x, and based on SAL’s FY Jun 20F earnings.

Key Risks to Our View:
Slowdown in IT spending which could lead to lower orderbook; concerns on corporate governance issues.

Source: DBS ... bfabkfdhjg

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Sat Mar 14, 2020 10:30 pm
by winston
not vested

Silverlake Axis - A Waiting Game
Date: 13/02/2020
Price Target 0.38

Silverlake Axis's 1HFY6/20 core net profit of RM100m (-15% y-o-y) was slightly below expectations at 48% of our FY20F forecast.

Cautious business environment continues to hurt Silverlake Axis’s order wins, as clients hold off committing to larger projects.

We believe an earnings decline is inevitable in FY20F due to higher opex and tax rate.

Reiterate HOLD. Target Price SGD0.38

Source: CIMB

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Tue Apr 28, 2020 9:13 am
by winston
not vested

Silverlake Axis (SILV SP, NEUTRAL, TP: SGD0.26)

Spending Cuts Likely To Impact Outlook; NEUTRAL

Company Update

NEUTRAL, new DCF-based TP of SGD0.26 from SGD0.41, 8% upside with c.3% FY20F (Jun) yield.

With the COVID-19 pandemic and plunging oil prices impacting economies, banks’ default rates are likely to increase – thereby dampening their profitability.

This, together with lower interest rates, leads us to expect banks to cut IT capex spending.

As such, we pare down Silverlake Axis’ FY20-21F earnings by 14% for each year.

Source: RHB ... 941051.pdf

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Sun May 17, 2020 3:38 pm
by winston

Silverlake Records Revenue Growth For 9M FY2020, Aided By Higher Recurring Revenues

9M FY2020 Group revenue increased 3% to RM506.8 million, with growth from recurring revenue segments and sale of software and hardware products

Encouraging growth momentum achieved in recurring revenue segments, representing 74% of total revenue in 9M FY2020:
(i) Maintenance and enhancement services grew 10% to RM347.6 million
(ii) Software-as-a-Service for insurance processing grew 17% to RM28.8 million ... eID=610957

Re: Silverlake Axis / Goh Peng Ooi

PostPosted: Mon May 18, 2020 9:42 am
by winston

Lacking near-term catalysts

9MFY6/20 core net profit of RM126m (-17% yoy) was below expectations at 61%/66% of our/Bloomberg consensus FY20 forecasts.

Lockdown measures will temporarily impact SILV’s progress billing on project implementations. Cautious macro environment could also hurt order wins.

Valuation appears attractive at current levels, but we believe more visibility on dividend payout is required to drive a sustained re-rating. Maintain Hold.

Source: CIMB ... B0E83DA5BE