Stock Name: CSE Global
Company Name: CSE GLOBAL LTD
DBS Vickers Securities in a Feb 7 research report says: "CSE guided that 4Q 2011 net profit will be around 75% of $12.7 million net profit in Q3 2011 compared to its earlier expectations of sequentially higher profit. Thus, the expected net profit of $9.5 million in Q4 2011 is about 40% below our estimates.
"Overall FY2011 net profit is likely to be 12% below our estimate of $34 million. CSE has a record backlog of $460 million, up 17% y-o-y for FY2012F. The company has also made enough one-off provisions of $22 million for Middle East cost overruns in Q2 2011, some of which may be written back in FY2012F.
"The stock is trading at 7.9x FY12F PE below average 8.0x PE for small & mid cap oil & gas peers in Singapore. Target price of 90 cents. MAINTAIN HOLD."
Company Name: CSE GLOBAL LTD
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 0.90 |
DBS Vickers Securities in a Feb 7 research report says: "CSE guided that 4Q 2011 net profit will be around 75% of $12.7 million net profit in Q3 2011 compared to its earlier expectations of sequentially higher profit. Thus, the expected net profit of $9.5 million in Q4 2011 is about 40% below our estimates.
"Overall FY2011 net profit is likely to be 12% below our estimate of $34 million. CSE has a record backlog of $460 million, up 17% y-o-y for FY2012F. The company has also made enough one-off provisions of $22 million for Middle East cost overruns in Q2 2011, some of which may be written back in FY2012F.
"The stock is trading at 7.9x FY12F PE below average 8.0x PE for small & mid cap oil & gas peers in Singapore. Target price of 90 cents. MAINTAIN HOLD."
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