CSE Global hits S$199.1 million in new orders for Q2, says strategic review still ‘ongoing’
[SINGAPORE] Systems integrator CSE Global on Wednesday (Aug 5) said it had secured S$199.1 million in new orders for the second quarter ended Jun 30.
With these additions, the group closed Q2 with an outstanding order book of S$620.4 million.
Group managing director and CEO Lim Boon Kheng noted that while order intake saw “some year-on-year seasonality” in the the timing of contract awards, demand across the company’s key markets remained healthy and supported by a robust tender pipeline.
“Despite the uncertain operating environment, we believe our proven capabilities and longstanding customer relationships position us well to continue securing new orders,” he said.
CSE Global’s communications segment was the strongest performer, making up 39.6 per cent of the total order intake.
It secured S$78.9 million in new orders, marking an 8.9 per cent year-on-year increase that was largely driven by strong order flows in Australia and New Zealand.
Representing 32.2 per cent of total order intake, the electrification segment bagged S$63.9 million. This was a 29 per cent decline on the year, which the company attributed to a timing difference arising from the replacement of a purchase order, with the new order expected in the subsequent quarter.
Meanwhile, the automation segment brought in S$56.2 million in new orders, making up 28.2 per cent of the total intake for Q2.
Strategic review ongoing
Alongside its contract wins, the company provided an update on its strategic review, which began in March and could lead to a full sale of CSE Global.
The company stated on Wednesday that the review is still “ongoing”.
The review encompasses “possible transactions involving the company’s shares and/or all or part of the company’s business and assets”.
It was initiated following a request from controlling shareholder Heliconia Capital Management – a wholly owned investment firm of Temasek that focuses on growing small and medium enterprise leaders in the region – as well as a non-binding, preliminary indicative expression of interest from an unnamed party.
CSE Global reiterated that “there is no certainty or assurance that any definitive agreement will be entered into, or any transaction will materialise from the strategic review”.
The company posted a 29.1 per cent rise in revenue to S$265.2 million for Q1 ended Mar 31, boosted by fresh demand from the data-centre industry. Its Q2 results will be released on Aug 13.
Shares of CSE Global finished 1.6 per cent or S$0.02 down at S$1.26, before the news.
