Software company Silverlake Axis, a regular at the Billion Dollar Club, is back as the winner delivering the most weighted ROE for this industry category. It was named overall sector winner as well. The company, with three decades of history, is famous for providing software and related IT services to various financial institutions here, including so-called “core banking” systems without which the big lenders won’t be able to keep proper track of the money flows in and out.
With new managing director Andrew Tan at the helm, Silverlake Axis is actively repositioning itself for the new market environment. It is actively refining its products and offerings too. Rather than rely on project work, Silverlake Axis has been growing a steady stream of recurring income by offering maintenance and enhancement services to its growing and established pool of customers.
Tan wants to assure its stakeholders the company — given its track record — is here for the long haul. “We’ve been here [in this space] solidly for 30 years”, in contrast to competitors that have come and gone, he says. “We’re here for the long game.”
See also: Silverlake Axis keeps focus on both returns and innovation
Manufacturer InnoTek has been named the company that has given the best returns to shareholders for this industry category this year, with a CAGR of 20.4% over the three years taken into consideration.
The company focuses on making precision metal components and its customers are in industries ranging from consumer electronics, office automation and mobility devices. Under CEO Lou Yiliang, the company was able to achieve five straight years of profitability.
Finally, Multi-Chem won for the fastest earnings growth over the three years taken into consideration, with a CAGR of 17.5%. The company has been listed on the Singapore Exchange since 2000 and has maintained a relatively low profile.
Multi-Chem started as a distributor of speciality chemicals and materials to printed circuit board manufacturers. In May 2002, the company diversified into the business of IT distribution, carrying names such as Check Point, CyberArk, Imperva, McAfee, Proofpoint, Riverbed, RSA, Solarwinds, Symantec (now known as NortonLifeLock) and Trend Micro.
In 1HFY2021 ended June 30, Multi-Chem reported earnings of $11.6 million, up 58% y-o-y. Revenue in the same period was up 32% to $298.5 million. Clearly, the company is enjoying good growth momentum.
Cover image of Andrew Tan of Silverlake: Albert Chua/The Edge Singapore
