UOB Kay Hian's John Cheong and Heidi Mo have kept their "buy" call and 59 cents target price on CSE Global 544 , following its 3QFY2024 business update where its revenue was in line with expectations.
The company reported a turnover of $213.9 million for the quarter to Sept 2024, up 15.4% y-o-y, bringing 9MFY2024 revenue to 75% of Cheong and Mo's forecast for the full year.
However, they've observed that CSE Global's 3QFY2024 order wins, at $187 million was down 38% y-o-y.
Nonetheless, the order outlook for the current 4QFY2024 is "promising". In the first half of Nov 24, CSE won three contract wins worth some $129 million in the US, slated for execution from 2024 to 2026.
"These fall under CSE’s electrification business and reflect its strengthening position to capture demand in the space," state Cheong and Mo.
The company's order book has reached some $634 million, "signalling a healthy pipeline for the coming quarters," the analysts add.
See also: UOBKH calls Centurion Corp a stock for ‘growth-minded investors’
They expect the company to maintain its full-year dividend at 2.75 cents per share, implying an "above-average" yield of 6.3% versus STI's 4%.
CSE Global shares changed hands at 45 cents as at 11.13 am, up from yesterday's close of 44 cents.
