- CSE Global (SGX:544), with a yield of 6.1% is on track to deliver better quarters ahead as we expect operating margins to continue to improve as it executes its S$692.3m order-book, accretive acquisitions and remains one of our conviction picks.
PATMIof S$15m above our & consensus estimates
- - Read this at SGinvestors.io -
- Net margin also improved from 3.2% to 3.5% due to better utilisation of manpower and capacity.
- An interim dividend of S$1.25 cents was declared. See CSE's dividend dates.
- We also expect S$70-100m of large contract orders by end Aug 2024.
Solid 1H24 points to a much stronger 2H24E
- - Read this at SGinvestors.io -
- In addition, recognition of margins are always better after the contract concludes as costs are always recognised upfront. As a result, we expect net margins to improve from 3.5% in 1H24 to potentially 4.0% in 2H24E.
- In addition, CSE's accretive acquisition of RFC Wireless is likely to add another S$1.3m of NPAT to its bottom-line (pro-rated from July 2024).
Larger sized orders likely due to capacity expansion
- Read more at SGinvestors.io.
