Below expectations: CSE Holdings' Q2 profit dipped by 6% in Q2

It was dragged down by higher tax rates.

CSE Global Limited reported a 6.0% YoY decline in its profits from continuing operations to S$8.0m in Q2, despite a 16.3% jump in revenue to S$108.1m.

Profits were dragged down by a higher-than-expected effective tax rate and fell short of analyst expectations.

According to OCBC, for 1H14, revenue grew 6.2% to S$201.3m, while PATMI from continuing operations fell 9.1% to S$15.6m.

“This constituted 50.0% and 43.2% of our FY14 forecasts, respectively. An interim DPS of 1.25 S cents was declared (payable on 27 Aug 2014), a slight decline from the 1.5 S cents declared in 2Q13. CSE also registered a 9.3% YoY decrease in its new orders received to S$95.4m, while outstanding orders were S$194.7m (-28.6% YoY), as at end 2Q14,” noted OCBC.