CSE Global Limited made a slow start to FY14 as expected, reporting a 3.5% YoY fall in its 1Q14 revenue to S$93.2m and a 12.1% decline in its PATMI from continuing operations to S$7.5m. This formed 23.1% and 20.9% of our full-year forecasts, respectively. CSE experienced some startup delays in projects in the Americas. Nevertheless, we had previously highlighted in our 28 Mar 2014

report that we expect FY14 to be a backend-loaded year for CSE. It clinched S$73.4m of new orders in 1Q14, and ended the quarter with an outstanding order book of S$207.4m (versus S$227.2m as at end FY13 and S$261.5m as at 31 Mar 2013). We will attend an analyst briefing and will provide more details thereafter. Our Buy rating and S$0.63 fair value estimate is under review.

Source: OCBC Research - 14 May 2014