CSE Global

[winston]

From DBS:-

Expect another solid quarter

Story: CSE is expected to report strong 1Q08 results on 14th May after the market closes. We expect net profit of S$11.6-12.0m, up 35-40% y-o-y. This should be driven by turnover of S$120m, up 42% y-o-y. We expect gross margin to be stable at c.36%.

Point: We expect new orders worth S$110-120m for the quarter, in line with our forecast of S$510m new orders for the whole year. Middle East and Africa should be the fastest growing regions in terms of turnover. In terms of segments, telecom solutions should be fastest growing segment followed by control solutions.

Relevance: We continue to see 30% earnings CAGR for the next two years. Valuation is undemanding at 9.7x FY08F PE compared to small and mid cap peers’ 10.3x given its healthy growth prospects.

CSE remains a Buy with target price of S$1.63 pegged to 15x FY08F PE, or 11.6x FY09F PE.

[winston]

JPMorgan Chase & Co. and its affiliates has ceased to be a substantial shareholder of CSE GLOBAL LTD with the reduction of holdings from 5.94% to 4.87%.

[iam802]

From SIAS Research (dated 31 March 2008):

--
Reasonable Valuation

For FY08, we forecast earnings to grow 23.7% to $52m on a 19% increase in revenue to $481.6m.

While the average forward PE of peers is about 8.7 times, we believe CSE deserves a 15% premium as its main business is in the oil and gas industry. Basing on a forward PE of 10 times and FY08 EPS of 10.2 cents, we arrive at a target price of $1.02.

The target price of $1.02 translates to a upside potential of 6.8% at the current price of 95.5 cents. We recommend HOLD.
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[iam802]

Adding in a chart for reference... as my report from SIAS is a bit dated (March).

Winston's report from DBS is more recent.

[millionairemind]

CSE Global
Aug 26 close: $0.875
CIMB-GK RESEARCH, Aug 26

MANAGEMENT is bullish on achieving a $500 million order book by end-2009, driven by more contract wins from downstream gas and refinery projects in Saudi Arabia, the UAE and Algeria.

Year-to-date, the group has secured $290 million new contracts, with an outstanding backlog of about $380 million.

We believe the order book can exceed $500 million by end-2009 if CSE can win one sizeable gas project from Australia or Papa New Guinea. It is in the running for two major gas projects from these regions.

The downstream oil & gas sector is benefiting not only from new projects in the pipeline but also a resurrection of projects previously put on hold.

The upturn is led by an increase in oil majors' capex thanks to falling construction costs, easing financial conditions and stable oil prices.

Q2 2009 gross margins jumped to 41 per cent from 39 per cent in Q1 2009 following the delivery of higher-margin projects to the healthcare and thermal engineering sectors as well as some savings from lower staff costs.

Management guided gross margins of 39 per cent for FY2009 and around 37 per cent for FY2010.

Management expects FY2009 net profit to decline 5-10 per cent y-o-y due to fewer project deliveries to the upstream sector.

However, FY2010 is expected to be better than FY2008 from downstream project wins. Earnings visibility could potentially stretch into 2011 as downstream projects typically take 12-24 months to complete.

Operating cash flows for H2 2009 are expected to remain strong at $20-25 million. Working capital is also expected to improve as downstream projects from the Middle East are shifting from progressive milestone payments to monthly payments.

Management expects net gearing to dip below 0.5 times by end-2009. Any new merger and acquisition is only likely after H2 2010, after the balance sheet has been strengthened.

Maintain 'outperform' and TP of $1.08, still based on CY2010 PE of 11. Key catalysts for the stock could include accelerated order wins and sustainable margins. Key risks would include currency risks as 90 per cent of CSE's revenue is denominated in US dollars, sterling pound, euro and Australian dollars. Any weakening of these currencies against the Singapore dollar will have an impact on earnings translation.
OUTPERFORM

[millionairemind]

November 13, 2009, 1.13 pm (Singapore time)

CSE's Q3 profit slips 16%, sees profit for Q4, FY2010

By ANGELA TAN

CSE Global on Friday reported net profit for the third quarter to end September fell 16 per cent to S$12 million.

Revenue fell 12 per cent to S$101.73 million due to a weaker South East Asia market.

In 3Q 2009, CSE received $154.5 million new orders, bringing the total new orders received for 9M 2009 to $398.8 million and the outstanding orders as at end of 3Q 2009 was $376.0 million.

CSE said it remains confident that it will be profitable for 4Q FY2009 and FY2010

[winston]

Not vested. From CIMB:-

CSE Global (S$0.96) - More contracts secured in Dec 09
Bullish on order-book outlook

Maintain Outperform and target price of S$1.37, still based on 11x CY11 P/E
(historical 7-year average). CSE had secured S$85m contracts in Dec 09, with earnings
contributions in FY10. FY09 order wins are estimated at S$500m (including variation
orders), meeting our assumption.

Thus, our earnings estimates and target price are unchanged. The share price has surged 10% since the start of the year, on the back of announcements of order wins. We believe announcements of more order wins and sustainable strong margins will further catalyse the stock.

Secured contracts worth S$85m
CSE announced that its various subsidiaries had won a total of S$85m contracts in Dec
09 from the oil & gas, and infrastructure sectors in various regions:
• Telecommunication and security surveillance projects in Saudi Arabia, Abu Dhabi and
Papua New Guinea
• Control and automation projects in the US, UK, Saudi Arabia and ASEAN
• A maintenance contract from the Singapore government.

Comments
In good stead for more contracts. While the Papua New Guinea contract win was
smaller than anticipated, we believe the win could pave the way for more contracts from
the booming Australian LNG market.

Meanwhile, we are assuming order wins of S$550m for FY10, including contracts from:
1) downstream oil & gas refinery projects in Saudi Arabia, UAE and Algeria;
2) recovering upstream spending in North America on stronger oil prices;
3) an acceleration in UK healthcare spending before upcoming elections; and
4) growth opportunities in the environment sector. Order book at end-FY09 is estimated
at S$400m (+22% yoy).

Valuation and recommendation
Maintain Outperform and target price of S$1.37, still based on 11x CY11 P/E
(historical 7-year average). More order wins and sustainable strong margins could
provide catalysts for its share price, we believe. CSE is our preferred pick in the smallcap
O&M space for its attractive valuations against peers and robust fundamentals.

We expect net gearing to improve to 0.3x by end-FY10 from 0.44x at 9M09, with the help of healthy operating cash flow and low capex plans. Gross margins are expected to hold at 37%.

[millionairemind]

May 10, 2010, 2.25 pm (Singapore time)

CSE's Q1 net profit up 39%

By ANGELA TAN

CSE Global said on Monday that its net profit for the first quarter of 2010 rose 39 per cent to S$11.32 million compared to a year ago.

Revenue was up 6 per cent at S$100.69 million.

The group's order book stood at S$429.5 million by the end of the first quarterafter it received new orders of S$151.4 million for the quarter.

However, the net cash acquisition of S$18.2 million for Systems Integrated & Automation Limited and the increase in the activities resulted in an operating cash outflow of S$9.0 million in 1Q10 and, increased the group net gearing to 56.5% from 38.6% as at end of 4Q09.

The Systems Integrated & Automation Limited will contribute positively to the CSE in the current financial year.

[winston]

Not vested

Singapore technologies provider CSE Global may be in focus after it said its subsidiary, W-Industries, had secured new orders in the United States worth $95 million in the first seven months of 2011, up from $52 million in January-July 2010.

Source: Reuters

[Chinaman]

Revisit this counter....now trading at 79 cts.
This company had an acquisition, with many contracts in-hand.
Sometimes back their MD was loading his company shares at 80.5 cts.