CSE Global - RHB Invest 2024-08-27: Electrification Unit & Acquisitions Driving Growth

• CSE Global (SGX:544) offers exposure to the energy, infrastructure, mining & minerals sectors across the US, UK, Singapore, Australia, and New Zealand. The stock is a play on critical communications and infrastructure development. It is also diversifying into green energy.
• - Read this at SGinvestors.io -

Registered strong 1H24.

• CSE Global's revenue for 1H24 grew 23% y-o-y to S$429m, while net profit grew 36% y-o-y to S$15m. Revenue growth was driven by the electrification segment that saw an uplift by 32% y-o-y to S$217m, while the automation and communication segments rose 26% y-o-y to S$99m and 6% y-o-y to S$114m.
• Gross and EBITDA margins remained stable at 27-28% and close to 9%.
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Robust orderbook of S$692m.

• CSE Global’s orderbook for 1H24 stood at S$692m. Order intake continued to be strong at S$391m, similar to 1H23. Its orderbook is largely accounted for by the electrification segment (S$395m), followed by automation (S$191m), and communications (S$106m).
• We estimate that about 30% its orderbook will be recognised in the remainder of this year.

Driven by infrastructure development and acquisitions.

• Read more at SGinvestors.io.

Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-08-27 SGinvestors.io

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