Willie Koh asked 5 years ago
Hi, I was looking through the annual report of silverlake axis for 2017 and noticed that they have a bump up in earning due to (1) gain in disposal of PPE and also (2) shares in an associate. There is another item called (3) “gain on re-measurement of interest retained in investment to fair value”. Should we ignore those 3 to get a better gauge on the earnings for that yr? Thanks.
Victor Chng answered 5 years ago
Hi Willie,
Yes you should remove number 1 and 3 to see how recurring is their profit. As for number 2 they are associated that they owned but not more than 50% hence they only record the profit. If you want to be conservative you can remove it but if the amount is small it is ok to ignore.
Willie Koh
replied 5 years ago The amount is quite big compared to the profit. It’s about RM480mil.
Victor Chng
replied 5 years ago Hi Willie,
I just look into the annual report it is the gain arising from disposal of share in associate. In this case you have to remove it. It is different from what I mentioned above.
Willie Koh
replied 5 years ago Thanks for the prompt reply.
Willie Koh
replied 5 years ago Silverlake seems to be trading near to historical low in terms of PE. Price hasn’t recovered since the short Seller’s report few years back. Any views on the company will be appreciated. Thanks.
Victor Chng
replied 5 years ago Hi Willie, you have to find out their historical average PE range and decide the valuation from there. Personally, I think they company is still recovering from the short seller report. Most importantly, investors must believe that the company is not a fraud.
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