Silverlake: secures 3-yr $30m upgrading contract from an existing customer, one of the largest regional banks in SE Asia. Work involves providing cross border standardization and upgrading of the Silverlake Axis Integrated Banking System. Mgt confident about prospects, sees regional banking sector continuing to recover, expects more contracts and upgrades in FY11…
Thinly traded counter has been range bound over the past 12 mths, but could be a potential turnaround play if orders start picking up significantly. Recall in Aug Silverlake was selected to be one of four key technology partners to implement CIMB’s regional core banking platform costing RM 1.1bn in total over the next 5 yrs.
Stock trades at 24.7x current PE, but valuation expected to narrow to 12.2x FYJun11E PE.
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