- We believe 2H order wins will be much stronger due to larger size project tenders in 2H25. CSE Global is also in the midst of qualifying for another 1-2 hyperscaler clients and we expect DC order growth to accelerate. Management also remains bullish on a stronger 2H25E.
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Gross and net margins both improve.
- CSE Global's gross and net margins for 1H25 both improved to 27.9% and 3.7%, respectively, from 27.6% and 3.5%. Revenue grew 2.8% y-o-y to S$440.9m despite the depreciation of US$ vs S$. Remaining orderbook stands at S$573.8m, which we believe will likely improve once larger orders are secured in 2H25E.
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Likely more larger order wins from data centres.
- CSE Global made a strategic move to reserve capacity and focused on clients in the data centre and utility spaces. CSE Global unveiled on Aug 2025 a S$59m data centre extension order from its existing US hyperscaler customer. The first order was S$20+m 3 years ago and a second was secured in Apr 2024 at S$49m followed by the third in Aug 2025. The speed as well as contract sizes have been increasing and we believe this will likely continue.
- CSE Global is also in the midst of qualifying with another 1-2 hyperscaler clients and a win would add significant earnings growth for FY26-28E.
Capacity to triple by 2027-28E.
- Read more at SGinvestors.io.
