Public Announcement: This will be the last article covering CSE Global Ltd (“CSE”) till further notice. The reason is due to its relatively small market capitalization, which may in turn lead to speculation and manipulation. Furthermore, investors with large stakes may find it difficult to exit their position given the relatively low liquidity. CSE has also lowered their dividend payout for June 2025, an indication that there may be changes in management direction.
On 26 February 2025, CSE announced their full year result for FY2024. The key thing to note is the USD8.0 million arbitration settlement (approximately SGD10.4 million). This resulted in a smaller increase in earnings per share as compared to the change in revenue. This is a significant portion of the net profit for CSE. However, as it was classified as exceptional, the absence of this may translate to stronger financial performance moving forward. Investors will need to assess their risk appetite accordingly.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: Financial Statements And Related Announcement::Full Yearly Results
Photo source: 5 things I like about CSE Global
Financial Highlights
Revenue
| Metrics | Current | Previous |
|---|---|---|
| Revenue | +18.8% | +20.2% |
| Rating | Favorable | Favorable |
Revenue for FY2024 increased by 18.8% to SGD861 million from SGD725 million in the previous financial year. The increase was primarily driven by the Electrification and Automation business segments in the Americas and Asia Pacific regions. The metric remains Favorable. Do note that the order book as of end of the financial year has decreased by 7.9% to SGD672 million compared to the previous financial year.
Earnings per share
| Metrics | Current | Previous |
|---|---|---|
| Earnings per share | +6.8% | No Update |
| Rating | Favorable | Favorable |
Earnings per share for FY2024 has increased by 6.8% to SGD0.0391 per share from SGD0.0366 per share in the previous financial year. This metric remains Favorable. Do note that the increase in profit was smaller than the increase in gross profit due to the USD8.0 million arbitration settlement (approximately SGD10.4 million). Excluding this, profit before tax would have seen an increase by 56.0%.
Operating Cash Flows
| Metrics | Current | Previous |
|---|---|---|
| Operating Cash Flows | -40.8% | No Update |
| Rating | Unfavorable | Favorable |
Operating cashflows for FY2024 saw a decrease by 40.8% to SGD33 million from SGD55 million in the previous financial year. The decrease is mainly due to changes in working capital. This metric has changed to Unfavorable.
Gearing ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing ratio | 59.5% | No Update |
| Rating | Unfavorable | Unfavorable |
Gearing ratio as of 31 December 2024 stands at 59.5%. This was computed using the computation for Real Estate Investment Trusts (“REITs”), with total assets of SGD632 million and total liabilities of SGD376 million. This metric remains Unfavorable.
Interest coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 5.0x | No Update |
| Rating | Favorable | Favorable |
Interest coverage stands at 5.0 times as of 31 December 2024. This was computed using profit before tax of SGD35.6 million and interest expense of SGD8.9 million. This metric remains Favorable.
Price-to-book ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 1.27 | 1.28 |
| Rating | Unfavorable | Unfavorable |
Price-to-book (“P/B”) ratio currently stands at 1.27. This is based on the NAV of the Group as of 31 December 2024 of SGD0.362 per share and closing share price of SGD0.460 as of 6 March 2025. The metrics remains Unfavorable as you are paying a larger premium for the book value of the asset.
As of 6 March 2025, the Market Capitalization is approximately SGD324 million.
Website: Yahoo Finance: CSE Global Limited (544.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 2.50% | SGD 0.012 |
| 2024 | 5.98% | SGD 0.028 |
| 2023 | 5.98% | SGD 0.028 |
| 2022 | 5.98% | SGD 0.028 |
| 2021 | 5.98% | SGD 0.028 |
| 2020 | 5.98% | SGD 0.028 |
CSE have decreased their June 2025 payout to SGD0.012 per share. Assuming no change to the payout for September 2025, CSE will be giving dividend of SGD0.024 per share for the calendar year 2025.
With a closing share price of SGD0.460 on 6 March 2025, this translates to a dividend yield of 5.21%. For my benchmark, a reasonable yield would be around 5.25%. CSE dividend yield is Neutral.
Website: Reasonable Dividend Yield 2025Q1 – 5.25%
Do note that this assumes CSE will maintain their dividend payout for September 2025. Investors will need to assess if this assumption remains true over the next few quarters.
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Revenue | +18.8% | Favorable |
| Earnings per share | +6.8% | Favorable |
| Operating Cash Flows | -40.8% | Unfavorable |
| Gearing ratio | 59.5% | Unfavorable |
| Interest Coverage | 5.0x | Favorable |
| Price to Book Ratio | 1.27 | Unfavorable |
| Overall | Neutral |
Overall, the metrics have remained Neutral to invest in CSE. While CSE was able to boast strong revenue growth, it was unable to translate fully to stronger earnings per share and operating cashflows. Investors will need to assess if the exceptional item is one-off or if it may be recurring in the future.
Background
CSE is a Singapore-based technology company, which offers total integrated solutions to industries in the automation, telecommunications and environmental sectors. The Company is engaged in the business of systems integration solution and the provision of computer network systems.
The Company operates through Process Controls and Communications & Security segments. The Process Controls segment provides process control solutions that utilize supervisory control and data acquisition systems (“SCADA”), distributed control systems (“DCS”), programmable logic controllers (“PLCs”), motors, drives and plant transducers.
Its geographical segments include Asia-Pacific, America and Europe/Middle East. It offers safety critical solutions, including emergency shutdown systems, process shutdown systems, and integrated control and safety systems. Its products and services are installed on production facilities, as well as on drilling rigs.
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Website: CSE Global Ltd. (SGX: 544): 2024 Third Quarter Business Update
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