Silverlake Axis

Silverlake Axis: UOBKH guides that it is waiting for catalysts to emerge. Meanwhile, company fundamentals and growth prospects remain solid. Dividend payout remains a generous 90%. Orderbook backlog at end-Mar was RM250m, and anticipated contract wins include a sizeable project with a top Malaysian bank, an Islamic banking contract and an upgrading project for an existing client. A successful Wing Hang Bank acquisition by OCBC might also bode well for SAL if the OCBC engages in system integration. That said, this might only come in 2016. Successful listing of 27% owned Global InfoTech (domestic IT player in China’s financial services sector) would allow it to raise its profile, and take on bigger projects On strong share price performance, UOBKH downgrades to Hold. TP remains $1.20. UOBKH guides for entry at $1.05