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.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
