CSE Global - UOB Kay Hian 2024-05-13: 1Q24 Revenue In Line; Steady Order Wins Reaffirm 2024 Outlook

• CSE’s healthy order inflow attests to its strong track record to capture growing demand, while its recent share placement puts it in a better position to achieve inorganic growth.

1Q24 revenue in line with expectations; strong growth from infrastructure segment.

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• The rise in revenue was mainly from higher infrastructure revenue from its robust order pipeline, with the completion of electrification-related projects such as power distribution centres.
  • Revenue from the infrastructure segment jumped 39% y-o-y, from the ongoing fulfilment of orders secured in 2023.
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Steady order wins secured.

• CSE posted S$186.2m of new orders in 1Q24 (+17% y-o-y), leading to a strong orderbook of S$719.3m, 49.8% higher than that in 1Q23. This was driven by higher demand for electrification and automation solutions in the infrastructure and energy industries.
• About 45% of new orders were secured by the electrifications segment, while new orders from the communications segment was stable y-o-y despite some project delays in Australia and New Zealand. Automation-related orders surged 65% y-o-y to S$52m, from the expansion of waste treatment centre in the Asia Pacific.

Two-pronged strategy of leveraging on established track record and completing acquisitions.

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John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-05-13 SGinvestors.io

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