Singapore Stock Market News

CSE Global - Continuing operations offer value

StockFanatic
Publish date: Wed, 13 Nov 2013, 08:29 PM
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3Q core earnings were 20% below our expectations on lower-than-expected turnover. Still, we remain positive on the company as we see value in its continuing operations. 9M core EPS was lacklustre, making up 68% of our FY13 forecast.

Factoring in the miss as well as a successful listing of Servelec, we cut our FY13-15 EPS by 12-37%. Nevertheless, we maintain our Outperform rating with a higher SOP target price after raising estimated proceeds from the listing and rolling forward profits from continuing operations to FY15. Catalysts should include a successful Servelec listing.
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