CSE Global Limited (CSE) reported its FY13 results, with revenue from continuing operations falling 7.2% to S$416.0m, while core PATMI from continuing operations rose 5.5% to S$30.4m. This was below our forecast of S$34m due to additional provisions made for project overruns for a Middle-East project. Its current order book as at 31 Dec 2013 stood at S$227.2m, representing a decline of 18.4% from end 2012. On a bright note, CSE declared a final dividend of S$0.02/share and a special dividend of S$0.01/share. This will be paid on 20 May 2014 if approved by shareholders at its AGM. It also turned into a net cash position in end FY13, compared to a net gearing ratio of 19.2% as at 31 Dec 2012, due to proceeds received from its Servelec Group divestment which was used partly to repay its debt. We will attend an analyst briefing and will provide more details thereafter. Our Buy rating and S$0.96 fair value estimate (before adjustment for Servelec Group divestment) is under review due to a change in analyst coverage.

Source: OCBC Research - 28 Feb 2014