CSE Global - UOB Kay Hian 2024-11-26: Potential Beneficiary Of More Data Centre Projects

• CSE Global (SGX:544)'s 9M24 orderbook was healthy at S$634m despite muted order wins in 3Q24 (-38% y-o-y). We remain positive on its 4Q24 order outlook with around S$129m contract wins in Nov 24.
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Revenue growth sustained across all segments.

• CSE Global's 3Q24 revenue saw a 15% y-o-y growth, mainly from higher electrification revenue (+22% y-o-y) on faster-than-expected project execution in the US for two projects. This was partially offset by the hurricane season in the US, which led to offshore project execution delay in the second half of Sep 24.
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Muted 3Q24 order wins…

• CSE Global's 3Q24 order wins came in 38% lower y-o-y at S$187m (-8% q-o-q), in line with our expectation as 9M24 order wins formed 76% of our forecast. This was largely due to fewer order wins in the electrification segment (-57% y-o-y), as one-off major projects were secured in 3Q23.
• The communications segment also had lower order intake (-9% y-o-y), as a result of a major contract secured in 3Q23.

…but 4Q24 order outlook seems promising.

• Read more at SGinvestors.io.

John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-11-26 SGinvestors.io

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