CIMB Research lowered its price target on CSE Global Ltd to S$0.89 from S$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 percent at S$0.705 but have fallen 6 percent so far this year, in line with the broader market .

CSE announced on Thursday a 0.4 percent seasonal rise to its first-quarter net profit of S$12.6 million ($10 million), which formed 22 percent 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 percent, caused by the recognition of S$9 million zero-margin revenue from two telecoms projects in the Middle East, CIMB said.

For CSE Global's first quarter results, click

1131 (0331 GMT)

(Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)