Silverlake Axis

[shanrui_91]

Searching from page 1 of google to page 50 on Silverlake Axis, Core banking system, competitors annual report. They will give you hints on the next keyword to find. But i am still lacking in more intimate details about silverlake, other than that they pay fresh grad 2000 RM to work for them. IBS intelligence does have much more detailed informaation but they charge you a min annual fee of 400 pounds, that will be what I am still lacking of...

And of course, no point trying to contact their IR. They only have customer service and they ignore my email for 2 weeks and has not yet given me any reply.

[shanrui_91]

For Q3 2012, revenue increases by 21% while net profit increases by 63% compared to Q3 2011. A dividend of SGD 0.5 cents has been declared for the quarter.

They have also secured a new licensing contract with Malaysia Building Society Berhad to be recognised in FY 2013.

(vested)

[shanrui_91]

BIBD, Silverlake Digital Economy Sign Agreement
SATURDAY, 28 APRIL 2012

Bandar Seri Begawan - Bank Islam Brunei Darussalam (BIBD) reached another milestone following a Services Agreement signing ceremony with Silverlake Digital Economy at The Empire Hotel and Country Club yesterday.

BIBD Mobile Banking, which will soon be accessible to all customers, provides a selection of features such as balance checking, funds transfer and credit card payments via a mobile phone.

The new service is well suited for Brunei due to the high penetration rate of mobile phones and increasing popularity of smartphones.

The leading local Islamic bank has been a trailblazer in adopting new services and technology such as BIBD Online, SMS Alert Service and online top-up for prepaid electric meters.

Signing on behalf of Bank Islam Brunei Darussalam was Pehin Orang Kaya Seri Utama Dato Seri Setia Awg Hj Yahya bin Begawan Mudim Dato Paduka Hj Bakar, the Minister of Industry and Primary Resources in his capacity as Chairman of BIBD. Javed Ahmed, the Managing Director of BIBD witnessed the signing on behalf of the bank. Signing on behalf of Silverlake was Executive Chairman Goh Peng Ooi, and it was witnessed by Managing Director Choo Soo Ching.

Pehin Dato Hj Yahya in his speech said, "Over the past months, BIBD has made various enhancements to its IT infrastructure and that has helped revolutionise the way we do our banking in Brunei.

"BIBD, as the largest local bank in Brunei, has increased its ATM network with Biometric ATM that reads fingerprints," he added.

According to a press release, BIBD introduced 'online kiosk' or a self-service terminal which will be installed at all branches. Customers may gain access to BIBD website and BIBD online through the kiosk. It enables bill payments, credit card payments, transferring funds within BIBD accounts, checking account balances and a host of other transactions except for dispensing cash.

http://www.brudirect.com/index.php/Local...ement.html

[Gregg]

Hi

Any idea on the contract value? I thought We should see the announcement in Sgx company announcement section but nothing was posted...

[shanrui_91]

Hi

Any idea on the contract value? I thought We should see the announcement in Sgx company announcement section but nothing was posted...

the previous time, the MBSD contract news has been posted on the web in Mid-April but Silverlake waited until May to announce it.

Or it could be that this is an insignificant contract. This is likely to fall under customized solution.

(vested)

[Gregg]

Hi

Any idea on the contract value? I thought We should see the announcement in Sgx company announcement section but nothing was posted...

the previous time, the MBSD contract news has been posted on the web in Mid-April but Silverlake waited until May to announce it.

Or it could be that this is an insignificant contract. This is likely to fall under customized solution.

(vested)

http://info.sgx.com/webcoranncatth.nsf/V...A0034FFDB/$file/SAL_Disposal_Completion_SAB_Announcement_270612.pdf?openelement

Will this disposal affect the earning for coming quarters?

[shanrui_91]

http://info.sgx.com/webcoranncatth.nsf/V...A0034FFDB/$file/SAL_Disposal_Completion_SAB_Announcement_270612.pdf?openelement

Will this disposal affect the earning for coming quarters?

http://info.sgx.com/webcoranncatth.nsf/V...3003331A3/$file/SAL.Disposal.of.SAB.29Feb12.pdf?openelement

Referring to this earlier document, the subsidiary contributed 3.7% of the net profit of Silverlake Axis. For the current year, this should not have any effect since it will record a gain for sale of subsidiary.

Something interesting is that it is being sold at a PER of 1X.

As stated in the release - "Upon the completion of the Proposed Disposal, SAB shall cease to be a wholly-owned subsidiary
of SAL, and will become an independent distributor of SAL's products and services."

"The Proposed Disposal is part of SAL's strategy of growing its marketing and distribution capability by developing independent distributorships in selected markets."

Therefore, it is likely to have less than 3.7% impact to net profit for the next FY onwards as it will have to pay some distributor fee to Silverlake Axis.

Another thing that surprises me is that the Beijing subsidiary actually accounts for 3.7% of its earning though most of its major customers are in Singapore, Malaysia, Indonesia, Brunei and Vietnam. Basically, Silverlake will set up a subsidiary in each country that its customers are operating in. The subsidiary will then act as the point of contact in servicing the branches operating in that specific country.

Hence, the net profit could have been propped up by a one-off item like sale of software and hardware product or customised software solution. By observing the maintenance and enhancement services revenue for the upcoming Q4 result, we will then have a better understanding of its impact to this recurring segment

[Gregg]

Hi Shanrui_91

Where to check the outstanding contract that was given to Silverlake?
Is it under "Amounts due (to)/from customers for contract work-in-progress",(Referring to 2011 Annual Report, Page:81)?

[shanrui_91]

"Amounts due (to)/from customers for contract work-in-progress" refers to what that have been recognised at revenue but has not yet been paid by the customer.

For the outstanding contract, there is not really a precise amount - some contracts are confidential while some are too small to be announced.

In 2010, the company secured 4 major contracts totalling SGD210m from upgrade of OCBC and BIBD as well as implementation for HNA Group and CIMB. In 2011, it also win a contract to support the merger of Hong Leong and Eon Bank as well as Thanachart and Siam City Bank estimated at a total of MYR 200m.

Total order book from 2011 onwards from the 6 major contracts are worth MYR 725m. In Fy 2011, a total of MYR 150m has been recognised under non-recurring income. This will leave us with MYR 575m contract to be recognised over the next 3 FY until 2014 where the contract ends.

Of course, it is likely that the actual order book will be bigger given that the new MBSD contract should at least be worth another SGD 10m and that CIMB has been acquiring and expanding ever since Silverlake secured the original contract. For e.g. CIMB has acquired Philippines’ Bank of Commerce not too long ago and this will lead to a merger contract as well.

Another positive thing is that for the high margin(90%) software licensing, only MYR 40m has been recognised for the current FY as of 9m FY2012.

(vested)

[Gregg]

Hopefully the acquisition of RBS unit by CIMb would benefit silverlake...