CSE Global

CSE Global: CIMB maintains Hold with $0.64 TP. The house notes that at 64% of the house FY13 forecast, CSE’s FY13 core net profit of S$30.4m (+6% yoy) was below house and consensus expectations due to additional provisions for a problematic project in the Middle East. With the kitchen sinking done in 4Q, adjust our FY14/15 EPS by -1/+2%. Also introduce FY16 forecasts. As expected, a final and special DPS of 3 Scts was declared, taking the total DPS to 32.5 Scts (of which, 28 Scts relates to CSE’s capital reduction exercise following the sale of its UK business). Hence, the house revert valuation basis to 8x CY15 P/E, 0.5 s.d. below its 5-year mean (previously SOP), leading to a lower target price.