CSE Global (SGX:544)’s revenue of S$185m in 3Q23 (-2% q-o-q, +31% y-o-y) was largely in line with expectations, with 9M23 revenue forming 75% of our FY23F forecast and 78% of Bloomberg consensus’s.
Revenue momentum remains strong
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contribution from newly acquired subsidiaries (Radio One, Logic Wireless).
Energy revenue growth was healthy (+19% y-o-y) on more flow orders executed in the US.
Massive quarterly order wins driven by electrification projects
CSE Global's new order wins in 3Q23 breached a new high of S$302m (+30% q-o-q, +83% y-o-y). infrastructure was the key driver, with new orders surging to S$225m (+103% q-o-q, +309% y-o-y) on the back of
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new orders from recent acquisitions.
Order book rose to a record high of S$638m at end-3Q23. CSE Global shared that they are on track to achieve a record S$1bn in new order wins for FY23F, as they see a strong pipeline of infra opportunities ahead.
In addition, we see potential for major contract wins in data centres and wastewater treatment, which CSE Global has been making inroads into. As such, we hike our FY23-25F order wins by 22-24% to S$1.0bn-1.1bn.
FY24F: Driven by strong revenue visibility and margin expansion
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Above is the excerpt from research report by CGS-CIMB. Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
