• We brought Silverlake on a full-day NDR with institutional investors in KL. Key takeaways are management remaining bullish, as it believes this is the start of banks’ capex spending cycle. It would also be backed by strong MYR350m orderbook – of which MR200m should be realised in FY19F compared to MYR80m in FY18 under the licensing and project services revenue streams with average gross margins of about 60%.
• We expect revenue from both streams to surge y-o-y, and 63.6% PATMI for FY19.

Source: RHB Invest Research - 07 Sep 2018