Towards Financial Freedom
Silverlake Axis - Stellar 4QFY13 Results
In line with expectation, SILV reported stellar 4QFY13 results with PATAMI of MYR59.8m (+31.4% y-o-y) on the back of a MYR110.2m revenue (+14.6% y-o-y). With the final dividend of 1.1 cent, the stock is now trading at an attractive 4.1% yield with strong growth potential. We put our forecasts and TP under review pending the company's analysts briefing. Our most recent TP was SGD0.82. Maintain BUY.
- Revenue flat. Silverlake Axis (SILV)'s FY13 revenue came in flat y-o-y at MYR398.6m as a result of the decline in hardware sales (-80% y-o-y) as well as the fall in contribution of software project services (-44% y-oy). We see no signs of concern as hardware sales hardly generated any profits during the year while the amount of software project related work performed through the year was low as most of the major projects - for CIMB Thailand, CIMB Singapore, Thanachart-Siam City Bank and Hong LeongEON Bank - were already close to the completion. On the other hand, SILV saw strong revenue growth in software licensing (+89% y-oy), healthy revenue increase in maintenance services (+18% y-o-y) as well as the fresh contribution from the group's newly acquired insurance software business.
- Profitability rockets. The change of revenue mix as a result of major project completions resulted in a jump in software licensing revenue, which in turn drove up the margins and profitability. Both the FY13 gross and net profit margins jumped by 9ppts to 63% and 49% respectively.
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
New Update. Discover investment communities that resonate with your ideas
Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!
Latest Videos
Apps
Top Articles
1
SGX Market Updates
US Magnificent Seven Stock DLCs Introduced for Asian Market Hours
2
RHB Investment Research Reports
3
SGX Market Updates
4
5
CEO Morning Brief
Keppel DC REIT Buys Data Centres in Singapore’s Genting Lane for S$1b
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
