CSE Global: 1Q15 results were in line as net profit inched up 0.9% y/y to $7.6m on revenue of $105.5m (+13.2%). Top-line was buoyed by higher sales achieved in the Americas (+28.2%) and EMEA (+22.5%) regions.
Gross margin improved moderately to 28.5% from 27.5%, led by the Americas region, which saw higher offshore process control systems and services projects recognized in 1Q15.
Meanwhile, operating expenses were 15% higher at S$19.3m, driven mainly by higher personnel related expenses and provisions for doubtful debts.
Tax expenses swelled to $3.1m from $1.2m in 1Q14, mainly attributed to the write-back of deferred tax and the non-recurring tax deductions received for education donations made in 1Q14.
Despite headwinds in the O&G industry, the group managed to secure $103.1m of orders during the quarter, taking its order book to $252.5m, and stretching revenue visibility over the year.
Going forward, the group remains optimistic of its prospects for FY15, notwithstanding the challenging global economic outlook and low commodity prices. The group will continue to support and service its existing installed base or customers (brownfield projects) as well as execute its outstanding order book.
Latest broker ratings:
CIMB upgrades to Add, raises TP to $0.65 from $0.62
OCBC places its Hold rating and TP of $0.62 under review
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