CIMB Research lowered its price target on CSE Global to $0.89 from $0.90 but kept its outperform rating on the systems integrator for the global oil industry, citing first-quarter results that met expectations and set up the company for earnings improvements later in the year.
Shares of CSE were up 1.5% at $0.705 but have fallen 6% so far this year, in line with the broader market.
CSE announced on Thursday a 0.4% seasonal rise to its first-quarter net profit of $12.6 million, which formed 22% of CIMB’s full-year forecast.
The group also had higher operating costs for the quarter, although they were offset by lower administrative costs. This was due to a lower-than-expected gross margin of 31.4%, caused by the recognition of $9 million zero-margin revenue from two telecoms projects in the Middle East, CIMB said.
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