- CSE Global (SGX:544) is on track to deliver better quarters ahead and remains one of our conviction picks as a rare proxy for electrification/AI/data centres. Maintain BUY.
Solid 1Q revenue growth of 24% y-o-y
- - Read this at SGinvestors.io -
- With better operating leverage due to strong revenue growth, as witnessed in FY23, we believe margins should continue to improve from 3.1% In FY23 to 3.5-4.0% in FY24E. This would justify our 26% core FY24E EPS growth.
Net margins likely to improve
- As CSE Global's revenue grew by 24% y-o-y in 1Q24, we expect subsequent quarters to be higher as seasonally 1Q has been its weakest quarter.
- - Read this at SGinvestors.io -
A key beneficiary of AI boom and data centres
- CSE Global’s recent S$49.2m plant extension is for the design, engineering, fabrication, installation and integration of power management systems and solutions for data centres in the US. We think its client is one of a handful of main cloud providers in the US and believe it will likely win more data centre contracts from existing and new customers.
- AI technology and data centres require huge amounts of energy to develop and run and will benefit power management system integrators like CSE Global.
Potential buybacks and accretive acquisitions
- Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-05-12
Read also Maybank's most recent report:
2026-06-18 CSE Global - Opportunity To Board.
Previous report by Maybank:
2026-05-17 CSE Global - Key Data Centre Client Ramping Up.
Price targets by 2 other brokers at CSE Global Target Prices.
Listing of research reports at CSE Global Analyst Reports.
Relevant links:
CSE Global Share Price History,
CSE Global Announcements,
CSE Global Dividend Payout Dates & Corporate Actions,
CSE Global News
