CSE Global, a systems integration and IT solutions provider, is set to expand its presence in the US market, according to a report by UOB Kay Hian. The brokerage firm has maintained its ‘buy’ rating for CSE Global, with a target price of S$0.59, highlighting the company’s strategic initiatives and healthy order backlog as key growth drivers.
UOB Kay Hian anticipates that CSE Global will recover a US$6 million payment from a customer, minimising the impact on its financial performance for 2024. Additionally, the company expects a post-tax gain of US$9 million from the sale of its US industrial property, which will be reinvested into a larger facility to support its electrification business. This move underscores management’s positive outlook for growth in the US market.
The report also notes that CSE Global’s order intake reached S$565 million in the first nine months of 2024, with an orderbook of S$634 million, indicating a strong pipeline for future projects. The company’s focus on electrification and decarbonisation, alongside potential opportunities in the oil and gas sector, positions it well for continued success.
CSE Global is expected to maintain its full-year dividend at 2.75 Singapore cents per share for 2024, offering an attractive dividend yield of approximately 6.5%, compared to the FSSTI’s average of around 4.0%. UOB Kay Hian’s report suggests that large infrastructure project wins and accretive acquisitions could further boost CSE Global’s share price.
