Silverlake Axis

Silverlake Axis: CIMB maintains O/p with $0.86 TP. House note that Silverlake continues to improve its growth prospects with further acquisitions. YTD, it has announced two acquisitions. A proposed share placement should provide ammunition for further acquisitions and support for new orders, while reducing risks of dividend cuts. House assume that its recent acquisition of CVSB will be successfully completed and that CVSB will continue to grow. Factoring in both additional earnings from its acquisitions and its proposed share placement, house FY14-15 EPS dips by 1% while DCF price target rises (WACC 7.6%). Maintain Outperform with catalysts expected from further accretive acquisitions and new order wins.