SINGAPORE (May 8): CGS-CIMB Securities is retaining United Engineers at “add” given an operationally stronger 1Q18, lower losses in China and higher engineering & distribution contribution.
UE reported a 1% y-o-y decline in 1Q18 revenue to $105.2 million but earnings improved 3% y-o-y to $9 million, thanks to lower distribution and other costs due to divestment of its liquefied petroleum gas (LPG) business at end 2017, lower interest expense and slight 1.4 ppt improvement in gross margins to 43.5%.
