CSE Global has announced a 9% increase in its earnings for the first half of 2025, reaching S$16 million, aligning with UOB Kay Hian’s expectations. The growth was primarily supported by a 3% rise in revenue to S$441m, driven by a 13% increase in communications revenue and strategic acquisitions. The company is shifting its focus towards larger-scale data centre and infrastructure projects, particularly in the US, as it moves away from lower-value municipal projects.
The company’s order book, however, saw a 17% decline to S$573.8m, attributed to a strategic pivot away from smaller projects. Despite this, the communications segment showed robust growth, with a 9% increase in order intake to S$160.5m, supported by strong demand in the Americas.
CSE Global’s gross profit rose by 4% to S$123m, maintaining stable margins at 27.9%. However, operating expenses increased by 6% due to higher personnel and equipment costs. The company declared a lower interim dividend of 1.14 Singapore cents per share, reflecting a 49% payout ratio as it focuses on reinvestment for sustainable growth.
UOB Kay Hian maintains a “Buy” recommendation for CSE Global, with an unchanged target price of S$0.85, citing the company’s strategic repositioning and potential in the high-growth data centre market as key factors for future profitability. The company’s strategic shift is expected to result in a healthier order mix and improved order win momentum.
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