Silverlake Axis (SILV SP): The future is digital 

    • BUY Entry – 0.30 Target – 0.36 Stop Loss – 0.27

    • Silverlake

      Share price:
      30 c

      Target: 
      36 c

      Silverlake Axis is a software company that provides banking solutions to banks in Asia. The company has been operating for more than 30 years. Of the top 20 largest banks in Southeast Asia, 40% of them use Silverlake’s core banking solutions. 

    • Parent’s new partner. Earlier in July 2021, The Edge reported that private equity firm Ikhlas Capital is investing US$40mn in Silverlake Group, the holding company of the SGX-listed Silverlake Axis Ltd. Silverlake Group is the largest shareholder of Silverlake Axis.

      In turn, Ikhlas Capital is partly owned by former banker Datuk Seri Nazir Razak, and the firm is one of the partners of a conglomerate comprising other firms including AirAsia’s Group e-wallet unit Big Pay and Malaysian Industrial Development Finance (MIDF) vying for one of the five digital banking licenses to be awarded by the first quarter of 2022. 


Digital banking is its future.
gohpengooi 11.17Silverlake founder and executive chairman Goh Peng OoiGiven Silverlake Axis’s experience and expertise in providing banking solutions over the past 30 years, combined with the recent news of the investment by Ikhlas Capital into its parent company, we think that the award of one of the five digital banking licenses could provide a much-need catalyst to Silverlake’s share price.

Despite the >30% rally of its share price from the recent low, it is still near its 8-year low, partly due to a business slowdown over the years, and also due to a damaging short-seller report in 2015 which caused its market cap to almost halve in value. 

 

  • Still overlooked by consensus. Street expectations are not very high for the group, and may imply that many of the positive catalysts are not factored in yet into its current share price.

    There are 2 BUYS and 2 HOLDS and a 12m TP of S$0.38. Its valuations of 15x and 14x FY2022/23 P/E are relatively lower vs its software-related peers. 

You have no rights to post comments

Share Prices

Counter NameLastChange
AEM Holdings3.6900.080
Avi-Tech Electronics0.2750.025
Best World1.770-
Broadway Ind0.090-
China Sunsine0.420-
DISA0.003-
Food Empire0.955-0.010
Fortress Minerals0.360-
Geo Energy Res0.230-
Golden Energy0.9600.005
GSS Energy0.0440.005
InnoTek0.435-0.005
ISDN Holdings0.4300.015
ISOTeam0.0800.002
IX Biopharma0.081-
Jiutian Chemical0.056-0.001
KSH Holdings0.3300.005
Leader Env0.0860.004
Medtecs Intl0.149-
Meta Health0.015-
Nordic Group0.4600.010
Oxley Holdings0.1240.001
REX International0.166-0.002
Riverstone0.595-0.005
Sinostar PEC0.1570.004
Southern Alliance Mining0.780-
Straco Corp.0.470-
Sunpower Group0.310-0.015
The Trendlines0.099-
Totm Technologies0.083-
UG Healthcare0.159-0.003
Uni-Asia Group0.9000.010
Wilmar Intl3.970-
Yangzijiang Shipbldg1.270-0.030

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 698 guests and no members online