Friday, September 27, 2013

Silverlake : Double-digit growth & 4.5% yield (DBSV)

Silverlake
BUY S$0.715
STI: 3,214.25
Price Target: 12-Month S$0.82 (Prev S$0.80)
Double-digit growth & 4.5% yield

• Existing backlog enough for FY14F revenue
• Pursuing seven deals at the moment, big order win from a Malaysian bank could be a catalyst
• Maintain BUY with revised TP of S$0.82 implying potential returns of over 18%.

Backlog of ~RM325m at the end of FY13 provides 12-month visibility. The backlog contains a mix of licence & project revenue and has been boosted RM40- 50m by acquisitions of Merimen (insurance processing) and Cyber Village (mobile & Internet banking) recently. Both these acquisitions also demonstrate how SILV is expanding its presence from core banking into adjacent sectors. In addition to the backlog, SILV is set to secure a recurring maintenance revenue of ~RM200m (~45% of group revenue) in FY14F.


Pursuing several big and small contracts in FY14F, which may enhance backlog further. SILV is pursuing seven contracts - two in Malaysia, one each in Thailand, Myanmar and Cambodia and two outside ASEAN. SILV secured three contract wins and four upgrades last year. In our view, SILV is a strong contender to secure a big contract over RM200m from a Malaysian bank before end of 2013, which could boost the visibility from 12 months to 24 months.

Trading at 15-20% discount despite better growth prospects. Relative to its banking software peers - Temenos & Oracle Financial Service (OFS) - SILV has been growing faster as it is not exposed to a slower banking sector in Europe & US. On top of this, SILV’s maintenance revenue accounts for 45% of revenue, similar to Temenos but much higher than OFS. We contend that SILV should trade at least 20x FY14F PE, as OFS & Temenos trade at 20x & 22x respectively. SILV is cash rich with net cash of RM335m at the end of FY13.



Source/Extract/Excerpts/来源/转贴/摘录: , DBSV-Research,
Publish date: 24/09/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock