CSE Global - Maybank Research 2026-02-27: Proxy For Ai Data Centres In Us

• CSE Global (SGX:544) reported FY25 PATMI of S$37.5m, beating our forecast by 7%. We believe the ramp up in data centres will start in FY26 given it secured a US$143m order in Dec-25.
• - Read this at SGinvestors.io -

Net margin expanded to 3.9% from 3.1%

• Revenue grew 12.5% y-o-y to S$968.9m with strong growth of 16.6% and 12.8% y-o-y from its Electrication and Communications divisions, respectively. While GPM dipped to 27% from 28% due to expansion costs to accommodate larger data centre orders, operating leverage from higher revenues expanded net margins from 3.1% to 3.9%.
• For FY26E, we expect net margins to improve slightly to 4% as there are still expansion costs needed for its data centre operations despite the growth in revenue

New lease site ready by April 2026

• - Read this at SGinvestors.io -
• CSE secured a US$143m order in Dec 2025 from this customer and the order is slated for completion in 2026. We expect CSE to secure S$1.1bn of orders in 2026.

Execution is key

• We remain bullish on CSE’s outlook and see potential for a multi-year growth story. The company expects to more than triple capacity by 2027/28, and we believe it will secure another data centre client by 1Q27. Its 50% dividend payout guidance will provide shareholder stability alongside upside from the positive industry outlook.
• We see CSE as a proxy for the AI data centre boom in the US.

Maintain BUY with a higher target price of S$1.52

• Read more at SGinvestors.io.

Jarick Seet Maybank Research | https://www.maybanktrade.com.sg/ 2026-02-27

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