Silverlake Axis (SGX:5CP)'s 3QFY24 earnings of RM23.3mil were below our estimates. 9MFY24 earnings were at 62% of our FY24e. The 33% y-o-y dip in earnings came from Higher cost of sales (+53% y-o-y) and operating expenses (+9% y-o-y) despite an increase in total revenue.
- Read this at SGinvestors.io -
Order backlog of RM180mil going into the rest of FY24 with the total deals pipeline at RM1.2bn.
We lower FY24e earnings forecast for Silverlake Axis by 19% as we lower gross profit margin estimates and increase OPEX estimates for FY24e. Downgrade to ACCUMULATE with a lower Silverlake Axis target price of S$0.33 (previously S$0.36).
The Positives
Recurring revenue rose 10% y-o-y.
- Read this at SGinvestors.io -
Silverlake Axis (SGX:5CP)'s 3QFY24 earnings of RM23.3mil were below our estimates. 9MFY24 earnings were at 62% of our FY24e. The 33% y-o-y dip in earnings came from Higher cost of sales (+53% y-o-y) and operating expenses (+9% y-o-y) despite an increase in total revenue.
3QFY24 recurring revenue comprising maintenance and enhancement services, insurance ecosystem transactions and services, and retail transactions processing revenue grew 10% y-o-y, while non-recurring revenue comprising software licensing, software project services and sale of system software and hardware products rose 42% y-o-y.
Order backlog of RM180mil going into the rest of FY24 with the total deals pipeline at RM1.2bn.
We lower FY24e earnings forecast for Silverlake Axis by 19% as we lower gross profit margin estimates and increase OPEX estimates for FY24e. Downgrade to ACCUMULATE with a lower Silverlake Axis target price of S$0.33 (previously S$0.36).
The Positives
Recurring revenue rose 10% y-o-y.
Silverlake Axis's recurring revenue comprises maintenance and enhancement services, insurance ecosystem transactions and services, and retail transactions processing revenue.
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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