CSE Global - Maybank Research 2024-09-08: Visit To Electrification Business In Houston

• We visited CSE Global (SGX:544)’s electrification business (Volta) in Houston, US to gain a better understanding of its business and came away more convicted on its mid-term outlook.

Electrifying our conviction

• - Read this at SGinvestors.io -
• The prospects for CSE Global's data centre segment are massive with an existing 40,000 sqf facility that will rise to 75,000 sqf in 2025. This will satisfy demand from just one customer and will still need to be expanded to meet its demand pipeline in 2026.
• - Read this at SGinvestors.io -

Rapid expansion phase driven by strong demand

• The electrification business has seen rapid growth in the past few years driven by grid growth and upgrades due to population growth as well as population shuffle between different states and cities. In addition, demand from data-centres, LNG terminals, power distribution centres, and substations for EV-charging have also fuelled demand for CSE Global’s products and services.
• CSE Global has also expanded its office & facility space from about 100,000+ sqf to about 374,500 sqf currently across 5 locations. With the pipeline of orders still growing at a 15-25% pa rate y-o-y, we expect further expansion to potentially 600,000 sqf by 2026.

Data centres an exciting growth area

• Read more at SGinvestors.io.

Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-09-08 SGinvestors.io

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