CSE Global

CSE Global: OCBC upgrades to Buy with TP unchanged at $0.80. Results were in line with expectations. 1Q Rev was up 31% yoy to $134.7m while net profit was flat at $12.6m. Co's telecom division which encountered cost over-run issues in FY11 broke even during the quarter and booked in $9.0m of additional work (zero margin rev) for legacy projects. Expects better margins once legacy projects are done with stable 35-37% lvls in mind. Growth is expected in the Americas, in greenfield onshore work. Outlook for Asia and Europe remains lacklustre. House is positive, although margins have yet to recover, esp on improved cashflows and gearing lvl. With $10.3m one-off gain from eBworx shares, there is a higher prob that grp will revert to a 4c dividend for FY12F.