Friday, February 21, 2014

Silverlake Axis: Another Shiny Quarter (DMG)

Silverlake Axis: Another Shiny Quarter
 (BUY SGD0.87, TP: SGD1.00)

In line with expectations, Silverlake Axis (Silverlake) reported yet another strong set of results, with PATAMI rising 23% y-o-y to MYR60.6m on the back of a 24% y-o-y jump in revenue to MYR125.2m. The group continued to demonstrate strong execution capabilities. Reiterate BUY, with our TP unchanged at SGD1.00, based on DCF valuation (WACC: 9.5%, terminal growth rate: 5.0%).


Strong execution yet again. During 2QFY14, Silverlake’s revenue surged 24% y-o-y, largely attributed to: i) higher software licensing revenue (+35% y-o-y), ii) higher maintenance services revenue (+24% yo-y), iii) soaring sales of hardware (+332% y-o-y), and iv) new revenue contribution from its insurance processing software business. Going forward, we expect the company’s 3QFY14 results to be even stronger as it recently completed the CIMB Malaysia project, thus boosting its project development services and licensing revenue.

Profitability strengthens. In line with the revenue growth, PATAMI during the quarter climbed 23% y-o-y to MYR60.6m as the group kept costs under control. Notably, profit contribution from its associate, GIT InfoTech – a specialist in systems integration for banks in China – shot up 83% to MYR3.3m in spite of the amortisation of expenses amounting to about MYR1.0m per quarter ending this year. Once this company is successfully listed on China’s main board, envisaged to be towards year-end, we expect it to become another pillar of growth as this will open up the China market.

Yet to land new contracts but orderbook hale and hearty. The company has yet to secure the long-awaited RHB Bank contract, largely due to the complexity of the deal as well as the recent change in the banking group’s CEO, which resulted in the deliberations being extended. Nonetheless, we remain confident that Silverlake will eventually secure this mega project.

Thanks to some scope add-ons and enhancement works awarded by existing customer, CIMB, for its Indonesia project, the group’s order backlog remains healthy at MYR250m, which is about 1.0x its FY14F revenue.


Source/Extract/Excerpts/来源/转贴/摘录: DMG-Research,
Publish date: 13/02/14

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