Silverlake Axis - Phillip Securities 2023-08-29: Riding On New Product Cycles

• 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/.

Read also Phillip's most recent report:
2024-08-29 Silverlake Axis - Accept Cash Offer Of S$0.36.

Previous report by Phillip:
2024-05-16 Silverlake Axis - Higher OPEX Hurt Earnings.

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 Dividend Payout Dates & Corporate Actions,
Silverlake Axis News