- Silverlake Axis (SGX:5CP)'s 3QFY23 earnings of RM34.2mil were below our estimates. 9MFY23 earnings were at 64% of our FY23e. The 15% y-o-y dip in earnings came from higher-than-expected operating expenses due to the current inflationary environment and a need to increase staff costs.
- - Read this at SGinvestors.io -
- We maintain BUY on Silverlake Axis with an unchanged target price of S$0.49. We lower FY23e earnings by 7% as we increase operating expenses estimates for FY23e.
The Positives
Recurring revenue rose 8% y-o-y.
- - Read this at SGinvestors.io -
- Insurance ecosystem transactions and services revenue increased 18% y-o-y as there was broad-based growth across all segments, from vehicle claims processing, insurance policies processing, productivity and analytics solutions, and integration services.
- Revenue from retail transactions processing surged 102% y-o-y mainly due to higher subscriptions for Silverlake Axis's cloud-based retail solution, AgoraCloud, from both retail and pharmaceutical customers in Malaysia and Singapore.
Order backlog healthy.
- Read more at SGinvestors.io.
