CSE Global 544 has secured $300.3 million of new orders in 4QFY2023 ended Dec 31, 2023, up 23.7% from the new orders it clinched in 3QFY2022 and mainly driven by stronger demand for electrification and communications solutions in the infrastructure industry.
During the quarter, the electrification business segment continued to lead the growth in order intake, increasing 58.5% y-o-y to $203.1 million. Notable contracts secured in 4QFY2023 include two contracts in the US worth $150.6 million for the design and manufacturing of power distribution centres, as well as the integration of complex electrical and control systems and equipment in the US, which are slated for execution between 2024 and 2025.
Order intake for the communications business segment also remained strong, bringing in $54.3 million of new orders in 4QFY2023. This 43.5% increase y-o-y is mainly attributable to new orders from recent acquisitions in the communications business to expand its geographic footprint and market coverage.
In addition, about $42.8 million of new orders were secured by the company’s automation business segment in 4QFY2023, compared to $76.8 million in 4QFY2022 which included a one-off major contract relating to a multi-year system maintenance contract from the Singapore government.
For the full-year FY2023, the company posted order wins of a record total $990.2 million, up 20.9% y-o-y. Aside from the strong growth in the electrification and communications solutions segment, this was also fueled by increasing requirements in power management solutions and products and stronger demand in critical communications services.
“We are pleased to achieve a record $990.2 million of order wins in FY2023, which marks a new milestone for us. We expect order intake momentum in 2024 to remain robust as we expand our engineering capabilities and technology solutions to capture opportunities brought about by the three key secular mega trends: urbanisation, electrification, and decarbonisation, which serve as CSE Global 544 ’s growth drivers going forward,” says CSE group managing director Lim Boon Kheng.
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The company closed its FY2023 with an order book of $730.6 million.
Separately, CSE announced the expansion of its electrification business solutions offerings following the recent acquisition of Australian solar energy solutions provider Linked Group Services by wholly-owned indirect subsidiary CSE-Uniserve Corporation.
CSE’s electrification business currently offers a wide range of solutions, including power systems protection and control solutions, electric equipment centres and electrical drive and high/medium voltage systems to support the electricity grid and renewables.
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Going forward, the company will be able to supply and install commercial solar energy solutions, thereby enhancing CSE’s renewable energy capabilities. This includes turning existing commercial spaces into sustainable power sources and building entirely off-grid complexes.
According to Lim, demand for electrification solutions has been growing for the past few quarters. “We expect this trend to continue with the increasing focus on sustainability and energy transition. Expanding our suite of electrification solutions is a natural progression for us to expand our share of the addressable markets globally. We look forward to delivering our more innovative, sustainable and diverse solutions to our clients,” he says.
Shares in CSE closed unchanged at 40.5 cents on Feb 14.
