Silverlake Axis

Silverlake Axis: CIMB maintins O/p with $0.64 TP. House walked away from Silverlake’s post-2QF113 results meeting feeling more confident about our investment case. Also believe that the increase in dividends can be matched by its rising recurring income and expect it to be sustainable. Fine-tune model to factor in new updates. As such, core net profit estimates for FY13-15 are raised 4-10%. This lifts DCF-based target price (unchanged COE of 8.5% and LTG of 0%) while we retain our Outperform rating. Catalyst should come from more contract wins announcements and positive results.