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 an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
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