Image
The share buyback has provided some strong support to the stock price.

DBS Vickers' report of May 13 - that's three months old - is the most recent one we know of on CSE Global although in the past other brokers have covered the stock. 

DBS Vickers in its May 13 report said it expected
CSE Global, which is listed on the Singapore Exchange, to deliver 30% earnings compounded annual growth rate (CAGR) for the next two years.

“Valuation is undemanding at 9.7x FY08F PE compared to small and mid cap peers’ 10.3x given its healthy growth prospects.

"CSE remains a buy with target price of S$1.63 pegged to 15x FY08F PE, or 11.6x FY09F PE.”

Subsequent to the report, CSE reported a 40% jump in Q1 net profit to $12 million, and then a 34% jump in its Q2 profit to $14 million for a total of $26 million in the first half of this year.

Its outstanding order book as at end of 2Q 2008 was $319.3 million. Following the release of its 1H results, it started its share buyback programme on July 3 with a modest purchase of 59,000 shares executed between $1.00 and $1.03 a share, and then stepped up its purchases aggressively.

The stock has since held up relatively well even as the wider market – especially China shares – tumbled.

It is now trading at around 98 cents cum interim dividend of 1 cent. Book closure is Sept 2.

For those not familiar with CSE, it is one of the largest independent system integrators in the world.
Read more at its website here.


Image
CSE shares ended at 98 cents on Friday, Aug 22.

You may also be interested in:


You have no rights to post comments

Counter NameLastChange
AEM Holdings3.310-0.040
Avi-Tech Electronics0.255-
Best World1.660-0.010
Broadway Ind0.075-
China Sunsine0.4050.005
ComfortDelGro1.280-0.010
Delfi Limited1.240-0.030
Food Empire1.1000.040
Fortress Minerals0.335-
Geo Energy Res0.225-
GSS Energy0.033-
Hong Leong Finance2.490-0.010
Hongkong Land (USD)3.410-0.090
InnoTek0.4200.015
ISDN Holdings0.380-0.010
ISOTeam0.043-0.001
IX Biopharma0.045-0.005
Jiutian Chemical0.031-0.001
KSH Holdings0.315-
Leader Env0.070-0.002
Medtecs Intl0.142-0.006
Nordic Group0.415-
Oxley Holdings0.105-0.002
REX International0.187-0.013
Riverstone0.590-
Sinostar PEC0.140-
Southern Alliance Mining0.6900.020
Straco Corp.0.440-
Sunpower Group0.295-
The Trendlines0.095-
Totm Technologies0.047-0.001
Uni-Asia Group0.950-
Wilmar Intl3.690-0.040
Yangzijiang Shipbldg1.7400.070
 

We have 1341 guests and no members online

rss_2 NextInsight - Latest News