Excerpts from CGS CIMB report Silverlake Axis Ltd (SGX: 5CP) 3QFY6/22 core net profit of RM40m was below expectations due to elevated staff costs and business enhancement opex. GPM stable at c.58% in 9M22. Order win momentum sustained at RM97m in 3Q. Robust pipeline of deals of RM1.7bn. Secured backlog of RM450m provides earnings visibility for FY23F. Reiterate Add with lower TP of S$0.40. We think SILV is poised to benefit from banks’ rising investment appetite as interest rate tailwinds set in. Silverlake Axis 3QFY6/22 revenues missed expectations on elevated opex Silverlake Axis’s core net profit of RM40.1m in 3QFY6/22 (-33% qoq, +3% yoy) was below our/consensus estimates by 20%/8% (9M: 69% of FY22F). This is due to primarily heftier-than expected opex (+24% qoq, +32% yoy) owing to upfront costs related to group initiatives for internal improvement projects (e.g. upgrading finance system), business expansion and staff costs. Additional...