CSE Global: CIMB upgrades to O/p (TP $0.90) from Netural on the back of its recent underperformance. On a relative basis, current trading price offers a decent entry point. Against its own trading cycle, it is trading at 7x P/E vs. 5-year mean of 11x, peak of 24x and trough of 4x.
Compared to Singapore small-mid-cap industrials, it is trading at 6x CY13 P/E vs. 8x. The stock also offers an attractive div yield of 7%. There could be scope for a special dividend (1c) should the sale of its 29.2%-owned associate, Ebworx Berhad (EBWX MK) materialise. Checks with
mgt suggest that business is as usual. Overall, expect CSE to post steady 1Q12 results of $14m, up 11% yoy. Stronger-than-expected results and order intake could lead to a re-rating.
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