Silverlake Axis

Silverlake Axis: CIMB maintains O/p with $0.60 TP. Note that Silverlake’s strong 2QFY13 results continue to remind house why they love this co. It is continuing to show that it has positioned itself well to take advantage of the ASEAN bank consolidation theme and increase its recurring income base. Raise FY13-15 core net profit by 2-5.5% after factoring in its 2QFY13 results. Outperform rating is maintained as house increase its DCF-based price target (with unchanged COE 8.5%/LTG 0%). Catalysts should continue to come from more contract announcements and good quarterly results like such.