CSE Global

[dzwm87]

So where is the transparency on how the business is winning contracts like Servelec?

You won't know. You can track major E&P spending but I will think the correlation is loose. I presume Servelec is disclosing contract wins because they have just listed and could be obliged to have better IR (i.e transparency). That's the problem with order book-driven companies. Essentially, you are paying for book and a certain premium for business continuity. Issue is how much of a premium for business continuity will be subjected to your judgement on management qualities.

[thereserved]

looks like the stock is rebounding on its way up after hitting its low

[orangetea]

Finally some good news

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CSE Wins New Orders
Singapore, 14 July 2014 – CSE Global Limited (“CSE” or the “Group) announced today that its wholly-owned Australian subsidiary, CSE-Comsource Pty Limited (“CSE-Comsource”) has secured an initial three year term contract with a customer in Australia to supply Telecommunications and CCTV Equipment Support Services. The contract allows for a further extension of four years over and above the initial three year period. These services will be provided from CSE-Comsource offices in Perth and Darwin for the customer’s offshore facilities in the Bayu Undan field located in the Timor Sea and at the Darwin LNG plant. This reinforces and extends CSE-Comsource’s relationship with the customer over the last 7 years.
CSE is also pleased to announce that its US-based subsidiary, CSE W-Industries, Inc. has recently clinched an order for a chemical injection system for a deepwater floating production facility in the Gulf of Mexico.
The total value of these two projects is approximately S$27 m.
Mr Lim Boon Kheng, Group Managing Director of CSE, said, “We are glad to have won these two projects. It is a testament of our strong track record and the value-add that we offer to our customers. These projects are expected to contribute positively to CSE’s financial performance for the financial years from 2014 and beyond.”
For the current financial year, these contracts are not expected to have any material impact on the consolidated net tangible assets per share or earnings per share of the Group. None of the directors or substantial shareholders of CSE has any interest, direct or indirect, in the contracts.

[sykn]

Great news indeed! I had always believed that CSE's tech cutting edge was always there after divesting Servelec, but the unknown was whether they could secure enough new contracts.

[value:search]

Likely to hit 0.73 soon but I do think fundamentally, it can still go higher if the past PE & book value can be of used as a rough guide. Vested.

[value:search]

Likely to hit 0.73 soon but I do think fundamentally, it can still go higher if the past PE & book value can be of used as a rough guide. Vested.

In about a week, CSE just hit the target of 0.73! This represents more than 30% return from about 2 months back. 0.73 will likely to be the support line moving forward. At PE of 5.8 with 4% dividend yield, it can scale towards 0.80 in the short term. Catalyst for further upside might possibly come from favourable announcement of Q2 result plus interim dividend around mid of August. Remain vested. Will collect more should there be a brief correction.

[greengiraffe]

understand uob kh issued a report on CSE with a target price of $0.88

Odd Lots Vested
GG

[sykn]

Good reward for those who hung on when the share price went down to the 50's, with the stubborn belief based on analysis that it's intrinsic value has to be much more! 72 cents was what it was worth after paying the 28 cent special dividend on selling off Servelec. I believe it can go up much more. Vested.

[greengiraffe]

http://www.businesstimes.com.sg/premium/...5-20140812

PUBLISHED AUGUST 12, 2014
CSE's Q2 profit down 35.5%

Interim dividend, payable Aug 27, drops to 1.25¢ from 1.5¢ a year ago
BYCARINE LEE
carinel@sph.com.sg @CarineLeeBT
PRINT |EMAIL THIS ARTICLE
CSE Global yesterday said its net profit attributable to owners of the company fell 35.5 per cent year on year to S$8.03 million for the second quarter ended June 30. The technology firm said that profit from continuing operations rose 11.9 per cent to S$13.39 million before taxation. After tax, however, it fell 2.3 per cent to S$8.48 million.
Profit after tax and non-controlling interests from continuing operations fell 6 per cent to S$8.03 million.
CEO Lim Boon Kheng said: "The recovery in offshore projects in USA and the growth in sales activities in Australia has contributed to our performance in this quarter. Our gross profit margins remain steady and our cash and balance sheet position continues to be healthy."
Revenue rose 16.3 per cent to S$108.07 million, on higher revenues in the Asia-Pacific and the Americas. Gross profit increased 9.5 per cent to S$31.5 million, with gross profit margin down 1.8 percentage points at 29.2 per cent.

[value:search]

CSE result within my expectation. Increase in topline with AsiaPac leading the charge at 30%. After the divestment of Semaphore to Servelec, a big drop in the net profit - this is expected. Fundamentally, the Q2 business is doing great with improvement seen in EBIT but tax liabilities and forex loss eaten up the returns. Hopefully, this will reset in next few quarters.

Forward PE around 8 with overall dividend forecasted around 4.4%. Dividend will likely provide the technical price support around $0.65. Book value at all time low.

Caveat: Divested at 0.73 but buy back at the low today.