Analyst Lim Siew Khee of CGS-CIMB reiterated a Buy rating on CSE Global, retaining the price target of S$1.15.
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Lim Siew Khee has given his Buy rating due to a combination of factors that suggest strong future growth potential for CSE Global. The company is preparing for significant order wins in the fourth quarter of 2025, particularly in the electrification segment, which is expected to drive a robust ramp-up in 2026. This optimism is supported by advanced negotiations for large contracts, including a substantial delivery contract with Amazon Web Services.
Furthermore, CSE Global is strategically expanding its capacity and geographical reach, which includes acquiring a large site in Houston and pursuing mergers and acquisitions to enhance its communications segment. Although there are temporary pressures on margins due to front-loaded operational expenses, these investments are anticipated to position the company for improved utilization and production scale in the coming years. The strong multi-year visibility from the AWS program, which could exceed US$1.5 billion over five years, underpins the Buy rating, despite potential risks such as cost overruns and slower order wins.
CSYJF’s price has also changed dramatically for the past six months – from S$0.440 to S$0.945, which is a 114.77% increase.