CGS-CIMB Research’s Andrea Choong has maintained her “add” call and raised her target price for Silverlake Axis from 35 cents to 37 cents, after it seems to be on track for a recovery. 

Silverlake Axis posted a core profit (adjusting for a one-off expense for the remeasurement of a put liability and derivative asset) of RM61 million ($19.5 million) in 4QFY2021 ended June, which was 58% higher q-o-q and 175% up y-o-y. 

4Q revenues recovered across almost all operating segments, she notes. “While full-year contributions from software licensing and project services were dampened by clients’ deferments of larger ticket deals to 2HFY2021, recurring revenues from maintenance and enhancement services which made up 76% of revenue were a bright spot, rising 3% y-o-y in FY2021,” she writes.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook