CSE Global

CSE Global: reported in-line results with revenue of $116m (-20% YoY) and core net profit of $12m (+12%). Gross margin improved to 34% from 25% in the year-ago period, mainly due to lower level of zero-margin work in Middle East and more profitable offshore work in the Americas. Separately, CSE disclosed that its UK subsidiary, CSE (UK), is currently pursuing a separate listing on the London Stock Exchange. The listing will provide financial independence to both CSE and CSE (UK) to facilitate future access into capital markets to pursue growth opportunities. OCBC keeps at Buy, but places its TP $0.96 under review. At $0.875, the stock trades at 9x annualized 1H13 P/E, 1.85x P/B.