CSE Global

CSE Global: in the wake of trading interest in Ausgroup and Civmec arising from their exposure to orders from the West Australian offshore and mining sector, CSE may see some positive spillover effects. CSE announced a series of new order wins that started in early Oct 2012, most impt of which was an Australian LNG project involving a telco system for an LNG facility in Australia with a total contract value of ~$70m. Mgt has advised that it is bidding for a similarly valued additional LNG project in Australia. StanChart is optimistic that CSE can secure this additional LNG contract. Notes CSE is currently trading at 7.4x FY13e P/E with a 5.4% prospective yield. Believes over the next 3 to 5 yrs, significant potential exists in CSE’s UK healthcare, Australia and environmental business. Reiterates Outperform rating with TP $1.00.