CSE Global [Official]

[Shion]

Temasek unit now substantial shareholder of CSE Global after buying 25% stake

Temasek unit now substantial shareholder of CSE Global after buying 25% stake

https://www.straitstimes.com/busine...ial-shareholder-of-cse-global-after-buying-25

SINGAPORE - Mainboard-listed technology solutions provider CSE Global said Heliconia Capital Management, a wholly-owned subsidiary of Temasek Holdings, has emerged as its substantial shareholder following the acquisition of a 25.03 per cent stake through a married deal with Malaysia's Serba Dinamik International Ltd.

With Heliconia as a key stakeholder, CSE Global hopes to leverage on Heliconia's network and expertise to support its growth plans, the company said in an exchange filing on Tuesday (July 7).

Following the acquisition, Heliconia has requested that CSE Global consider appointing its chairman Lim How Teck and its and chief executive officer Derek Lau as non-executive directors to its the board of directors. The request is currently being reviewed by the CSE Global's nominating committee and the board.

CSE Global CEO Lim Boon Kheng said: "We welcome Heliconia as a strategic investor. The emergence of Heliconia as a substantial shareholder is a strong testament to our business proposition and track record. The Group will be in a stronger position to expand our businesses both in the Singapore and overseas markets with a strong institutional shareholder base."

CSE Global focuses on providing and installing a variety of control systems, as well as turnkey telecommunication network and security solutions, for the oil and gas, infrastructure and mining industries. It has also extended its capabilities to new growth areas such as the Smart Cities projects.

As of March this year, it derived more than 65 per cent of revenues from the O&G segment, with more than 90 per cent of customers coming from the US. On the infrastructure side, clients include government agencies, utilities, ports, railways and airports.

The group has now more than 1,400 employees worldwide, and operates a network of 41 offices across the globe.

CSE Global closed up 1.5 cents or 3.4 per cent to 46 cents on Tuesday.

 

[starbugs]

One of my few conviction stocks.

https://www.businesstimes.com.sg/co...m-in-new-orders-for-q2-order-book-up-57-y-o-y

CSE Global bags S$114.9m in new orders for Q2, order book up 57% y-o-y

TUE, JUL 21, 2020 - 6:27 PM

MAINBOARD-LISTED firm CSE Global secured S$114.9 million in new orders for the second quarter of 2020, an 8.5 per cent increase from a year ago.

The growth in new orders was driven by the infrastructure and the mining-and-minerals segments. Infrastructure pulled in S$38.2 million in orders – a 19.9 per cent rise; mining and minerals took in S$22.8 million worth of orders, or 65.5 per cent more. Total order value for the oil-and-gas segment slid 10.6 per cent to S$53.8 million.

The order book stood at S$293.8 million as at June 30, a 56.6 per cent growth from S$187.6 million in Q2 last year.

CSE Global is a systems integrator, focusing on providing and installing control systems and turnkey telecommunication network and security solutions for the oil-and-gas, infrastructure and mining industries.

The group has more than 1,300 employees worldwide, and operates a network of 41 offices.

Temasek unit Heliconia Capital Management emerged as a substantial shareholder last month, following an acquisition of a 25.03 per cent stake through a married deal with Malaysia's Serba Dinamik International.

Shares in CSE ended trading at S$0.48 on Tuesday, up S$0.02 or 4.35 per cent.

 

[5408854088]

CSE Global reports 47.7% rise in 1H20 earnings to $15.1 mil on higher revenue

https://www.theedgesingapore.com/ca...477-rise-1h20-earnings-151-mil-higher-revenue

 

[5408854088]

CSE Global Limited has reported net profit of $5.1 million for the 3QFY2020 ended Sept 30, some 11.6% lower than net profit of $5.7 million a year ago.

https://www.theedgesingapore.com/ca...t-profit-51-mil-non-recurring-divestment-gain

 

[Shion]

CSE Global gets a thumbs up for its 'attractive entry opportunity'

CSE Global gets a thumbs up for its 'attractive entry opportunity'

https://www.theedgesingapore.com/ca...-gets-thumbs-its-attractive-entry-opportunity

DBS Group Research analysts Chung Wei Le and Ling Lee Keng say that systems integrator CSE Global offers an “attractive entry opportunity”

“CSE is currently trading at 8.3x FY21F Price-to-Earnings, which is -0.8 Standard Deviation below its 4- year historical mean,” they explain in a Nov 13 note.

Cezzanne See, an analyst at CGS-CIMB Research Securities, agrees, adding that the systems at CSE are “intact”.

This follows the 26.4% year-on-year increase in its net profit to $20.2 million in the first nine months of the year.

It comes on the back of a 26.5% surge in revenue to $373.4 million, due to the full-year contributions from US-based telephone operator Volta and the commencement of two large oil & gas contracts.

“9M2020 earnings is in line with our expectations, and net profit formed 82% of our FY20F estimates,” say DBS’ Chung and Ling.

The duo estimate that – based on new and outstanding orders – revenue from the oil & gas segment had increased 32% year-on-year to $255 million, while that from the mining and minerals segment soared 48% to $40 million.

This translates to a 29.3% year-on-year increase in CSE’s overall EBIT to $27.3 million for the first nine months of the year.

Meanwhile, the recent 3Q2020 ended September saw CSE’s net profit plunge by 11.6% to $5.1 million due to a on-off divestment gain of its former subsidiary S3ID Group.

In this time, the company had won $91 million worth of orders, bringing its total order book for 9M2020 to $333.1 million.

Of this, orders from the oil & gas segment was down 21.6%, while that for infrastructure and minerals and mining grew by 26.8% and 51.9% respectively.

The EBIT margin of the oil & gas segment came under pressure following the implementation of pandemic-related procedures and lower flow business orders particularly in 3Q2020 the DBS analysts says.

By contrast, the EBIT margins for infrastructure and minerals mining “remained relatively stable,” they add.

Looking ahead, Chung, Ling and CGS-CIMB’s See reckon that CSE may well be nearing or past the worst with oil prices largely stabilizing at US$40/barrel of oil ($54/barrel of oil).

Still, the analysts reckon that CSE’s orderbook may take time to pick up.

Says See, “CSE expects fewer opportunities and lower prices in forward oil & gas orders but maintains that there have not been material project/order book cancellations and collectability issues thus far”.

“We think the oil & gas segment may see near-term sluggishness due to the low crude oil prices and the political uncertainties in America. However, a strong order backlog and continued diversification to infrastructure and minerals & mining industries could provide a cushion in these tough times”.

Even so, the analysts say the company offers investment merits such as the possibility of a 1.5 cent dividend payout at the end of the year – in line with what has given disbursed in previous years. This equates to a dividend yield of 6.1%.

To this end, they have maintained a “buy” and “add” call on the counter at a target price of 55 cents (DBS) and 60 cents (CGS-CIMB).

DBS’ call gives the counter a 23% upside from its 40-cent close on Nov 12, while that for CGS-CIMB’s is at 33.3%.

Shares of CSE Global closed flat at 45 cents on Nov 13.

 

[Shion]

CSE Global clinches $131.2 million in new orders in 4QFY2021​

https://www.theedgesingapore.com/ca...bal-clinches-1312-million-new-orders-4qfy2021
Oil, gas and telecommunications company CSE Global has bagged $131.2 million worth of new orders in its 4QFY2021 ended Dec 31.

This is up 33.4% from the previous year, and brings the group’s total orderbook to $229.4 million at the end of the quarter.

Close to $85.5 million of the new orders were secured by the group’s energy sector, thanks to higher time and material jobs as well as newly awarded power and electrification projects.

New orders for the group’s infrastructure sector similarly increased to $32.1 million, on the back of higher orders of radio communication equipment and solutions.

Meanwhile, the mining & minerals sector clinched $13.6 million worth of new orders due to new mining projects in Australia.

Lim Boon Kheng, group managing director of CSE Global believes the company has “proved [its] mettle once again despite the ongoing challenges and volatile economic backdrop”.

“Orders from the Energy sector remained strong in 4Q2021, while the infrastructure sector’s healthy potential remains on an uptick, driven by continued investments in public infrastructure projects and automation needs,” he adds.

Lim says these developments are not expected to have any material impact on the group’s consolidated net tangible assets per share or earnings per share.

However, he is “optimistic on [the company’s] long-term outlook”.

“Our diverse set of widely transferrable engineering skills will continue to bode us well in the multiple sectors where we operate,” explains Lim.

Shares in CSE Global closed down a cent or 2.02% at 48.5 cents on Feb 7, before the announcement.

 

[Perisher]

looks like dividend machine... bought some.

 

[starbugs]

I have had this for almost 10 years. A stock paying reit-like dividends. Only it's a pity that CSE sold Servelec UK years ago, which was then privatised from LSE at a premium and recently resold again. Otherwise CSE could have been a healthcare tech powerhouse in today's context.

 

[Perisher]

I have had this for almost 10 years. A stock paying reit-like dividends. Only it's a pity that CSE sold Servelec UK years ago, which was then privatised from LSE at a premium and recently resold again. Otherwise CSE could have been a healthcare tech powerhouse in today's context.

That makes me interested in what other holdings you have.

 

[Shion]

https://www.businesstimes.com.sg/co...argets-on-cse-global-amid-challenging-outlook

 

[Perisher]

https://www.businesstimes.com.sg/co...argets-on-cse-global-amid-challenging-outlookDBS Group Research and CGS-CIMB have cut their target prices on CSE Global but maintained their "buy" and "add" calls respectively.

CGS-CIMB lowered its target price on the mainboard-listed technology solutions provider to S$0.57 from S$0.61, representing a potential upside of 18.8 per cent from the counter's last trading price of S$0.48 as at 1.58 pm on Wednesday (Mar 2).

Shares of CSE Global were down 1 per cent or S$0.005 at the time.


CGS-CIMB said CSE Global is trading at 10 times the research team's estimates for FY2023 earnings, which is 0.7 standard deviation below the group's 10-year historical mean.

Meanwhile, DBS trimmed its target price to S$0.59 from S$0.60, representing a potential upside of about 22.9 per cent. The new target price is 13.8 times the research team's earnings estimates for FY2022, and more than 1 standard deviation of CSE Global's 4-year average price-to-earnings ratio.

This comes as the research team cuts its FY2022-13 earnings estimates by 14 per cent to 18 per cent. The cut in earnings estimates was to account for lower margins due to the still challenging environment amid supply chain disruptions.

SEE ALSO​

Brokers' take: DBS upgrades Yanlord Land to 'buy' on solid long-term outlook​

While near-term margins could be under pressure, CGS-CIMB said it still like CSE Global for its "decent 5.7 per cent" dividend yield and diversification into higher-margin infrastructure projects. Although CSE Global's outlook remains challenging, wins from its infrastructure segment could surprise, CGS-CIMB said.

"We think the recent infrastructure contract win (first major data-centre project won) could pave the way for more order wins in this field," said CGS-CIMB analysts Kenneth Tan and Lim Siew Khee.

DBS is also positive on CSE Global's recovery as new order wins from all segments continued to gain ground in the past 4 quarters. The research team also noted the potential for large contract wins for the group's energy segment in FY2022.

"We are also optimistic on CSE Global's small acquisitions to enhance and strengthen its operations and recurring revenue stream as well as its pivot towards renewable energy projects (solar and wind)," said DBS analyst Ling Lee Keng.

 

[Shion]

CSE Global sees 118.8% surge in orders to $232.3 mil in 1QFY2022​

https://www.theedgesingapore.com/news/contracts/cse-global-sees-1188-surge-orders-2323-mil-1qfy2022
CSE Global Limited has reported new orders of $232.3 million for the 1QFY2022 ended March, up 118.8% from the $106.2 million posted in the corresponding period the year before.

The figure was also around 50% of the order intake logged in FY2021.

Of the total amount, a bulk of them came from the group’s infrastructure sector, which rose 187.8% y-o-y to $110.1 million. This was mainly due to a major contract secured to provide engineering solutions for the data-centre market and higher field services orders for the wastewater market in the Americas region.

Stronger orders of radio communication equipment and solutions led by utility and renewables customers in Australia also contributed to the quarter’s order intake.

The group’s energy sector saw an 86.4% y-o-y increase in order intake of $105.5 million. This was mainly due to a major contract relating to the maintenance and refurbishment of building management control systems for an offshore facility and higher orders for integrated systems.

Finally, the mining and minerals sector clinched $16.7 million worth of orders during the 1QFY2022, up 47.4% y-o-y. This was mainly due to an LTE system project that was secured for a mine site in Australia.

“Building on the increase in new orders in 4QFY2021, we are encouraged by the strong orders received in 1QFY2022, which is [a] testament to our customers’ confidence and trust in our solutions and services. This is all the more commendable in light of the ongoing challenges and volatile macroeconomic environment,” says Lim Boon Kheng, group managing director of CSE Global.

“Due to ongoing supply chain disruptions, the execution of these recent contract wins will be backloaded in [the] later part of 2022 and in 2023. Hence, we expect the revenues associated with these projects to be recognised from the second half of 2022,” he adds.

“Looking ahead, we remain optimistic in navigating the challenges induced by the pandemic, as we expand our engineering capabilities and technology solutions to pursue new market opportunities,” Lim continues.

As at March 31, the group’s order book stood at $344 million.

Shares in CSE Global closed flat at 46.5 cents on May 9.

 

[pclow59]

https://links.sgx.com/1.0.0/corpora...f3fbabd51f2bbdba58ede933677c878bc849d30dc55e9

 

[Perisher]

https://links.sgx.com/1.0.0/corpora...f3fbabd51f2bbdba58ede933677c878bc849d30dc55e9

Haven’t read yet but hope it’s good news. Been dropping since I bought… oh my 50c average…

 

[Shion]

CSE Global announces $33.4 million rights issue, DBS lowers target price ex-rights​

https://www.theedgesingapore.com/ne...ights-issue-dbs-lowers-target-price-ex-rights
Systems integrator CSE Global has announced a rights issue that is expected to raise net proceeds of $33.4 million for the company.

In an SGX filing on Oct 10, the company says it intends to issue over 102.4 million new ordinary shares at 33 cents per share.

For shareholders who hold the company’s shares, they will be provisionally allotted one new share for every five shares that they hold at the record date, which will be decided on.

The issue price represents a discount of approximately 20.5% to the last transacted price of 41.5 cents on Oct 10, which was the last trading day before the announcement, and a 17.7% discount to the theoretical ex-rights price of 40.11 cents per share.

The rights issue is likely to generate $33.8 million in gross proceeds and $33.4 million in net proceeds, after deducting estimated fees and expenses.

Explaining its rationale for the move, CSE Global says it intends to utilise about 90% of the capital for potential acquisitions of synergistic businesses in New Zealand and the US, and the remainder 10% to partially repay some of the loans previously drawn down for certain business acquisitions.

CSE Global says that the potential acquisitions form part of its strategy to expand and grow its communications businesses in the infrastructure industry markets, as well as participate in an expanding sector where demand for increased connectivity and security is expected to continue to grow.

It reveals that both the potential acquisitions relate to radio and critical communications business, which the company views as a “natural complementary fit” to its business.

“It is envisaged that the potential acquisitions will strengthen the company’s existing business partner and customer relationships, as well as extend its geographic coverage into the New Zealand and US markets for its communications business, thereby enhancing its market position in these markets,” CSE Global explains.

To demonstrate their commitment and as a vote of confidence in the company and the rights issue, CEO Lim Boon Kheng, chairman Lim Ming Seong and non-executive and independent director Tan Chian Khong have each given an irrevocable undertaking to subscribe for and pay in full their pro rata entitlements to the rights shares.

The three collectively have a deemed and direct interest of 3.21% in the company.

Furthermore, substantial shareholders Orchid 2 Investments and Orchid 3 Investments, which have a 12.27% and 12.70% stake in the company respectively, have also stated their intention to subscribe to their respective pro rata entitlement to the rights shares under the rights issue.

DBS continues to call ‘hold’

In response to the announcement, DBS Group Research has maintained its “hold” call on the stock, keeping a target price of 45 cents and 38 cent ex-rights, assuming a full subscription of the rights issue.

The brokerage is of the view that the irrevocable undertaking and expressions of intention for 28% of the rights by some directors and substantial shareholders is a display of confidence in the company.

As for the company’s outlook, DBS says it is still “promising”, except for large greenfield projects in the traditional energy sector, adding that “the flow business is still in recovery mode which should help to mitigate lower contributions from large greenfield projects.”

The flow business refers to “complete, end-to-end 'program' solutions developed from concept to final commissioning and handover”, according to CSE Global’s website.

Meanwhile, the outlook for its infrastructure and mining and minerals segment remains supported by a steady flow of projects.

On a broader view, DBS says structural trends such as digitalisation which requires increased connectivity and security will continue to be a key driver for CSE’s infrastructure segment.

Furthermore, the brokerage believes that the company’s 2HFY2022 (ending December) and FY2023 could be brighter on the backloading of recent contract wins, in view of the supply chain disruptions.

Shares of CSE Global closed at 36.5 cents on Oct 11, down 0.5 cent or 12.04% compared to its previous close.

 

[Shion]

CSE Global to acquire radio-communications business for S$20.4m​

https://www.businesstimes.com.sg/co...quire-radio-communications-business-for-s204m
MAINBOARD-LISTED CSE Global said on Tuesday (Nov 8) that it will acquire a radio-communications business, Logic Wireless, from Logic Technologies for a consideration of NZ$25 million (S$20.8 million).

CSE Global said in a bourse filing that the proposed acquisition provides an opportunity for the company to “expand and extend its existing radio-communication business and solutions to its customers in New Zealand, Australia and the UK”.

Under the sale and purchase agreement, CSE Global will acquire the entire share capital of Logic Wireless Limited, Logic Wireless Pty Ltd and Logic Wireless Europe Ltd from the sellers.

The Logic Wireless entities being acquired are “a leading provider of critical communications such as two-way radio and cellular communication solutions through New Zealand (plus the Pacific Islands), Australia and the United Kingdom”, CSE Global said.

The company noted it has been engaged in radio and critical communications business in similar markets and “views the proposed acquisition as a strategic fit to complement its current business”.

The target group recorded net profit before tax of around NZ$4 million, said its unaudited consolidated statements for the financial year ended Jun 2022. As at Jun 30, the net book value and net tangible assets of the target group was around NZ$7.2 million.

The consideration of NZ$25 million is subject to completion adjustments to the net asset value of the target group, up to the day immediately preceding the completion date, CSE Global said.

It intends to fund the consideration using proceeds from the company’s rights issue and banking facilities. CSE Global announced a renounceable non-underwritten rights issue last month to raise gross proceeds of up to around S$33.8 million.

On a pro forma basis, CSE Global’s net tangible assets per ordinary share would fall from S$0.2606 before the proposed transaction to S$0.2072 after it, assuming that the transaction had been effected on Dec 31, 2021.

Assuming the proposed acquisition had been effected on Jan 1, 2021, pro forma earnings per share would have risen to S$0.0302 after the proposed transaction, from S$0.0293 before it.

The completion of the proposed acquisition is subject to several conditions, including regulatory approvals being obtained.

CSE Global shares fell 1.4 per cent on Tuesday to close at S$0.345, before the announcement.

 

[starbugs]

Today is the last day of cum rights. At the CR price today, it may not even be worthwhile to exercise the rights at 33c. The CSE management timed this rights issue very badly.

 

[TehSi99]

What could be a good price to look at?

 

[Perisher]

To make selling rights clearer, here's my understanding.
When selling rights, like the current CSE Global rights, sell at prevailing market price, which is 9vqr at $0.009.

CSE Global prices it's rights issue is at $0.33
https://sg.finance.yahoo.com/news/cse-global-announces-33-4-025523110.html
When you sell, you sell the rights to the right.
Meaning the person buying from you still need to pay $0.33(for converting each right to shares) on top of paying that current rights issue price in the market at $0.009 per right.

While you pay nothing, subscribe nothing and merely selling away the rights(of converting each rights to shares).

E.g.
if i have 5000 shares of CSE global, i'm given 1000 shares(rights).
If i want those 1000 shares(rights) to be converted to real CSE global shares, i need to pay $0.33/share(rights) or $330.
If I don't want to convert, I can sell those 1000 shares(rights) on the market at prevailing price, right now for 9vqr, which is $0.009. And thus get back $9.

The buyer of your rights, at $0.009, would still need to fork out $0.33 per rights to get the shares. The rights cost $0.33.
The buyer essentially pays a premium of $0.009 + $0.33 for getting the rights + converting the rights to shares, total cost = $0.339 per rights.

In other words, unless market price of CSE global shares are much higher than $0.33, it makes no sense to subscribe... essentially you can get the shares on the market for $0.33~ anyway.

Take note that if you do sell, there is brokerage fee involved and may make it a losing deal.
Example if I sell 1000 at 0.009 = $9 while i pay brokerage fee of $10-20...

In that case, you can just simply... do nothing. So nothing will happen to your original shares.

btw, R is 1 right, R1 is odd lots.
So 9VQR or R is for selling each right at 100 rights while XHPR or R1 is for selling each right at 1 rights.

 

[starbugs]

I sold some nil-paid this morning for 1.3c from CPFIS, since my CPF-OA stock limit is too low to subscribe in full. Will be applying for excess with cash.