- Silverlake Axis (SGX:5CP)'s 4QFY23 (Apr to Jun 2023) earnings of RM36.4mil were below our estimates. FY23 earnings were at 87% of our FY23e. The 24% y-o-y dip in earnings came from lower-than-expected project-related revenue and higher-than-expected tax expense.
- - Read this at SGinvestors.io -
- 4QFY23 recurring revenue comprising maintenance and enhancement services, insurance ecosystem transactions and services, and retail transactions processing revenue grew 7% y-o-y, while project-related revenue comprising software licensing and software project services fell 4% y-o-y. Orderbook is RM665mil.
- We maintain a BUY rating on Silverlake Axis with a lower target price of S$0.38. We lower FY24e earnings forecast by 20% as we lower revenue estimates and increase tax estimates for FY24e. Our target price is pegged to 20x P/E FY23e.
- - Read this at SGinvestors.io -
The Positives
Recurring revenue rose 7% y-o-y.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Glenn Thum Phillip Securities Research | https://www.stocksbnb.com/ 2023-08-29
Read also Phillip's most recent report:
2024-02-19 Silverlake Axis - Quality Of Earnings Improving.
Previous report by Phillip:
2023-11-20 Silverlake Axis - Earnings Hurt By Project-Related Revenue.
Price targets by other brokers at Silverlake Axis Target Prices.
Listing of research reports at Silverlake Axis Analyst Reports.
Relevant links:
Silverlake Axis Share Price History,
Silverlake Axis Announcements,
Silverlake Axis Dividends & Corporate Actions,
Silverlake Axis News Articles
