CSE Global    Last:1.53    -0.12

CSE Global

By Andy Wong
Fri, 28 Mar 2014, 09:38:27 SGT

Following the successful divestment of CSE Global&rsquo s entire stake in Servelec Group in Dec last year, we believe management will focus on driving its growth largely from the oil and gas sector. CSE has significant exposure to the Gulf of Mexico (both the U.S. and Mexico side), and we expect it to benefit from positive trends arising from this area. Looking ahead, we also do not expect CSE to make any further provisions for cost overruns for its Middle-Eastern project, which would aid its margins recovery. We re-work our assumptions following a change in analyst coverage, and now forecast CSE to register core PATMI growth of 18.7% and 9.3% in FY14 and FY15, respectively. Applying a 9x target PER peg to our FY14 EPS forecast, we derive a fair value estimate of S$0.63 (previously S$0.96 before the Servelec Group divestment). Maintain BUY.



Focusing largely on the oil and gas sector
Following the successful divestment of CSE Global&rsquo s entire shareholding interest in Servelec Group in Dec last year, we believe management will focus on driving its growth largely from the oil and gas sector. This sector contributed 75% of CSE&rsquo s total revenue from continuing operations in FY13. Oil and gas related activities remain at healthy levels in most regions, in our view. CSE has significant exposure to the Gulf of Mexico (both the U.S. and Mexico side), and we expect the group to benefit from the on-going recovery following the ill-fated Macondo oil spill incident and the imminent liberalisation of the Mexican oil and gas market. There is also positive sentiment within the subsea sector. Market watcher Infield Systems has forecasted subsea capex to grow at a robust 15% CAGR from US$19b in 2013 to US$33.3b in 2017. CSE provides control systems for its subsea customers. Its order book stood at S$227.2m (as at 31 Dec 2013), a decline of 18.4% as compared to end FY12. However, management highlighted that this consists of higher quality projects and hence could augur well for its FY14 gross margins.

No further provisions for project cost overruns expected
CSE&rsquo s FY13 bottomline took a hit as it made provisions for project cost overruns amounting to S$8.1m. Looking ahead, management is hopeful that it will not have to make further provisions for this Middle-Eastern project in 2014, as it has provided some buffer in terms of assumed project completion timeline when making its provisions.

Maintain BUY
We re-work our assumptions following a change in analyst coverage, and now forecast CSE to register core PATMI growth of 18.7% and 9.3% in FY14 and FY15, respectively. We are expecting a backend-loaded FY14 due to the timing of certain key projects and expectations of new order wins in 2H14. Applying a 9x target PER peg to our FY14 EPS forecast, we derive a fair value estimate of S$0.63 (previously S$0.96 before the Servelec Group divestment). Maintain BUY.

 

Don' t you see something quite strange .... the big players will lead you to believe it is going up. When you start to follow .... kanna their trap already lor habis. 

Find the whole thing .... fishy. Just pause for a moment and think. Many a time we are carried away by our emotion and left out the most vital part .... something just not right.

Sitting on a pile of cash and happy doing nothing ... how can you justify to all the shareholders. After the meal they will make you pay. They have done it before ..... will it happen again .....

The smart ones are trying to exit before the XD that why they are pushing it up

 

Precisely they have cashed out and is cash solid. What will you do when you are cash solid ... you have to do something .... correct.

They will look for company to acquire and show case something. They will not buy ikan belis but have to justify it is   a good acquisition. It is likely going to cost a lot of money .... never mind lah ... let the retailer investors pay.

Just you wait and see. While you are waiting for the dividends, they are hatching theirs.

Hope I am wrong ....

 

u shorted? u sound so  pessimistic.. anyway if acquisition also good ma, look at mencast... 

T2LE56      ( Date: 08-Apr-2014 09:13) Posted: Let' s hope I am wrong ... maybe there are heading for an acquisition .... next announcement raising cash. Crazy retail investors always kanna trap .... price will dive again.

 

They cashed out of London with a nice profit, and been cash-positive, they are the rare companies in SGX in this advantageous status. Plus, they are expanding into many countries, recently bought a stake in one South America firm.
Solid footing for CSE. No worry of interest rate hike anytime yet.

 

Let' s hope I am wrong ... maybe there are heading for an acquisition .... next announcement raising cash. Crazy retail investors always kanna trap .... price will dive again. 

 

 

Think about it from the day there offer the candy .... ask yourselves how long before the XD. Quite long so the price can be held steady until XD on the 17 April.

Why leh ??? Some more 3 cts not bad nowadays ... so many will hold until their stipulated time. 

 

by not having debts, they are able to save $5 million on interest expense annualy.

New CEO and CFO would want to prove to others their capabilities. Their current orders are all higher margin projects. They get rid of the lower or zero margin projects.

Ya, upon XD, it may free fall, but there is also a potential catalyst which  is the Q1 financial results out in May. No one can predict what will happen unless u are an insider :).

If u think CSE Global is not worth the $$$, then better not touch the share.. but personally, I do feel that CSE global will become a high yield stock due to the cash on hand.  Perhaps it will do a Bakertech by distributing it' s cash on hand as a 2nd special dividend if the cash is not invested in acquisition or expansion. Bakertech also has cash on hand and annouced a 2nd special dividend of 5 cents as it did not really use the cash for major acquisition. Share price up from 26 cents predividend to 31 cents after the annoucement.

CSE cash on hand/share should be around 7 cents... hope they do another special dividend of maybe 3 cents again? :)

 

T2LE56      ( Date: 07-Apr-2014 18:28) Posted: If I remembered rightly the last round they also offered dividends and after the XD, the BB free fall all the way. Having cash is one thing but they must secure new orders. So far any new orders ???

 

i been watching it from 59c and very tempted to buy. 

But, the company now has to depend it' s profits from the oil and gas operations and yet to be seen how they have faired since. Board can do more to inform the shareholders on the plans and activity.

Debt free is one thing, but what are they doing with the money? Are they trying to save us money or make us money?

 

T2LE56, there's value in CSE. It's 100% debt-free so all it's profit can translate into good future dividend payout or they could use it for market expansion, both are good for shareholders

T2LE56      ( Date: 07-Apr-2014 18:26) Posted: Today look more like pushing the price by speculators. They give 3cts is like candy or jelly beans to entice investors to come and hold the price ...   who knows  near to XD it will drop like a sack of potatoes.

 

If I remembered rightly the last round they also offered dividends and after the XD, the BB free fall all the way. Having cash is one thing but they must secure new orders.

So far any new orders ???

 

Today look more like pushing the price by speculators. They give 3cts is like candy or jelly beans to entice investors to come and hold the price ...   who knows  near to XD it will drop like a sack of potatoes. 

 

Highly undervalued stock.Counter was unreasonably punished after the 28c CD.(sold out of london subsidary).Now giving another 3c.Where to find.

Time to move up.

 

interfact      ( Date: 07-Apr-2014 12:14) Posted: Maintain buy.Minimum fair value is 63c. DBS min 64c. guoyanyunyan      ( Date: 28-Mar-2014 11:38) Posted: Beginning on a fresh page ____ Following the successful divestment of CSE Global's entire stake in Servelec Group in Dec last year, we believe management will focus on driving its growth largely from the oil and gas sector. CSE has significant exposure to the Gulf of Mexico (both the U.S. and Mexico side), and we expect it to benefit from positive trends arising from this area. Looking ahead, we also do not expect CSE to make any further provisions for cost overruns for its Middle-Eastern project, which would aid its margins recovery. We re-work our assumptions following a change in analyst coverage, and now forecast CSE to register core PATMI growth of 18.7% and 9.3% in FY14 and FY15, respectively. Applying a 9x target PER peg to our FY14 EPS forecast, we derive a fair value estimate of S$0.63 (previously S$0.96 before the Servelec Group divestment). Maintain BUY. ...last:$0.595...

 

Maintain buy.Minimum fair value is 63c.

DBS min 64c.

guoyanyunyan      ( Date: 28-Mar-2014 11:38) Posted: Beginning on a fresh page ____ Following the successful divestment of CSE Global's entire stake in Servelec Group in Dec last year, we believe management will focus on driving its growth largely from the oil and gas sector. CSE has significant exposure to the Gulf of Mexico (both the U.S. and Mexico side), and we expect it to benefit from positive trends arising from this area. Looking ahead, we also do not expect CSE to make any further provisions for cost overruns for its Middle-Eastern project, which would aid its margins recovery. We re-work our assumptions following a change in analyst coverage, and now forecast CSE to register core PATMI growth of 18.7% and 9.3% in FY14 and FY15, respectively. Applying a 9x target PER peg to our FY14 EPS forecast, we derive a fair value estimate of S$0.63 (previously S$0.96 before the Servelec Group divestment). Maintain BUY. ...last:$0.595...

 

It's coming. After drifting downward for months, dividend payment coming on 16 Apr Ex-Div on 17 Apr.

This company have intrinsic value. It's now cash positive and expanding to South America strongly after cashing out of London.

 

Uptrend ....crossing over to upper bollinger band.

3c CD, XD on 17 Apr 14.

Octavia      ( Date: 04-Apr-2014 17:01) Posted: Upswing to upper BBand  soon and CD also rd the corner.

 

Upswing to upper BBand  soon and CD also rd the corner.

 

http://www.cnbc.com/id/101532986

daffytlh      ( Date: 30-Mar-2014 11:20) Posted: Sorry can ask any gd website that publish oil or commodity prices..easy to read and interpret? Thks SuperMonkey      ( Date: 28-Mar-2014 14:01) Posted: More reasons to buy: 1) The former CEO Alan Russell Stubbs was buying preparing the IPO for Servelec in London in 2013, thus " neglect" CSE global in a way. There was a project overrun of $8 million which has been declared as write off in 2013 financials. Plenty of allowance has been provided in 2013, thus this year financial results will be on a strong footing. This year CSE global has a new CEO in Lim Boon Kheng. The new CEO would want to show ppl that he is capable, so expect him to work extra hard to bring glory to the company under his charge. 2) It has turned from debt to net cash of around $38 million this year. With no debts to pay, it has a saving of $5million in interest. I believe the new CEO is user friendly having won awards from SIAS , so he would be more willing to give dividend. [url=http://postimg.org/image/tjfwm26mt/][img]http://s18.postimg.org/tjfwm26mt/550_Centurion_CSE_Nera.jpg[/img][/url] Most Transparent Technology Companies, L-R: Centurion (CEO Kong Chee Min), NeraTel (CEO Samuel Ang), CSE Global (Interim Group MD Lim Boon Kheng). picture from http://www.nextinsight.net/index.php/story-archive-mainmenu-60/919-2013/7660-sias-investors-choice 3) Oil has pushed past $100 barrier. Thus expect Oil & Gas sector to chiong and CSE Global belongs to this sector. 4) Of course the upcoming 3 cents dividend, XD 17 April. Hope my analysis is correct and the price will rise. Let see whether I am correct..

 

Sorry can ask any gd website that publish oil or commodity prices..easy to read and interpret? Thks

SuperMonkey      ( Date: 28-Mar-2014 14:01) Posted: More reasons to buy: 1) The former CEO Alan Russell Stubbs was buying preparing the IPO for Servelec in London in 2013, thus " neglect" CSE global in a way. There was a project overrun of $8 million which has been declared as write off in 2013 financials. Plenty of allowance has been provided in 2013, thus this year financial results will be on a strong footing. This year CSE global has a new CEO in Lim Boon Kheng. The new CEO would want to show ppl that he is capable, so expect him to work extra hard to bring glory to the company under his charge. 2) It has turned from debt to net cash of around $38 million this year. With no debts to pay, it has a saving of $5million in interest. I believe the new CEO is user friendly having won awards from SIAS , so he would be more willing to give dividend. [url=http://postimg.org/image/tjfwm26mt/][img]http://s18.postimg.org/tjfwm26mt/550_Centurion_CSE_Nera.jpg[/img][/url] Most Transparent Technology Companies, L-R: Centurion (CEO Kong Chee Min), NeraTel (CEO Samuel Ang), CSE Global (Interim Group MD Lim Boon Kheng). picture from http://www.nextinsight.net/index.php/story-archive-mainmenu-60/919-2013/7660-sias-investors-choice 3) Oil has pushed past $100 barrier. Thus expect Oil & Gas sector to chiong and CSE Global belongs to this sector. 4) Of course the upcoming 3 cents dividend, XD 17 April. Hope my analysis is correct and the price will rise. Let see whether I am correct..

 

http://www.ocbcresearch.com/

SuperMonkey      ( Date: 29-Mar-2014 08:08) Posted: http://www.ocbcresearch.com/Article.aspx?type=research& id=20140328093824_42673 guoyanyunyan      ( Date: 28-Mar-2014 11:38) Posted: Beginning on a fresh page ____ Following the successful divestment of CSE Global's entire stake in Servelec Group in Dec last year, we believe management will focus on driving its growth largely from the oil and gas sector. CSE has significant exposure to the Gulf of Mexico (both the U.S. and Mexico side), and we expect it to benefit from positive trends arising from this area. Looking ahead, we also do not expect CSE to make any further provisions for cost overruns for its Middle-Eastern project, which would aid its margins recovery. We re-work our assumptions following a change in analyst coverage, and now forecast CSE to register core PATMI growth of 18.7% and 9.3% in FY14 and FY15, respectively. Applying a 9x target PER peg to our FY14 EPS forecast, we derive a fair value estimate of S$0.63 (previously S$0.96 before the Servelec Group divestment). Maintain BUY. ...last:$0.595...