Maybank KimEng is recommending a “hold” on Silverlake Axis pending better disclosure of interested-person transactions (IPT), with support expected from healthy 96% payouts.
Share price is down a sharp 40% in the past three months as market remains concerned about IPT between Silverlake Axis and private entities under its chairman which accounted for 29% of sales and 23% of costs for FY6/15.
For 4QFY6/15, Silverlake Axis reported net income of MYR74.7 million ($24.7 million) was below at 92% of Maybank's estimates.
A final distribution of 1.2 cents translates to a FY15 payout of 96%. Full-year revenue was flat with bottom line flattered by MYR19.2 million gains from its sale of stake in Global Infotech during its recent IPO.
Management offered the consolation that although banks are unlikely to incur major capex in the near term, they will still require minor upgrades.
Order backlog of MYR200-220 million is expected to provide revenue visibility for FY16.
“Lower TP to SGD0.61 from SGD1.15, 30% discount to DCF to reflect IPT overhang,” says analyst Derrick Heng in an Aug 25 report.
Silverlake Axis is down 22.8% at 49 cents as at 10.15am.
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Share price is down a sharp 40% in the past three months as market remains concerned about IPT between Silverlake Axis and private entities under its chairman which accounted for 29% of sales and 23% of costs for FY6/15.
For 4QFY6/15, Silverlake Axis reported net income of MYR74.7 million ($24.7 million) was below at 92% of Maybank's estimates.
A final distribution of 1.2 cents translates to a FY15 payout of 96%. Full-year revenue was flat with bottom line flattered by MYR19.2 million gains from its sale of stake in Global Infotech during its recent IPO.
Management offered the consolation that although banks are unlikely to incur major capex in the near term, they will still require minor upgrades.
Order backlog of MYR200-220 million is expected to provide revenue visibility for FY16.
“Lower TP to SGD0.61 from SGD1.15, 30% discount to DCF to reflect IPT overhang,” says analyst Derrick Heng in an Aug 25 report.
Silverlake Axis is down 22.8% at 49 cents as at 10.15am.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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