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PR Newswire
13-01-2012, 09:29 AM
Anticipates CSE's new Australia LNG Project Win
CSE Global: Look out for Australia LNG
project win.
● Long-term investor increased
stake.
● 5.3% dividend yield attractive
● Look out for Australia LNG project
win
Long-term investor increased stake.
CSE Global’s shares fell by as much as 14%
(from end Nov 11) to $0.67 (a 30-month
low) in Dec 11, but subsequently rallied to
S$0.75 by the end of 2011. Since the start of
the year, its share price has also rallied by
another 17% to S$0.88. The Dec sell-off was
likely due to France-based institutional
investor Amundi Group selling down its stake
to below 5% (from 5.2%). Almost
immediately after, long-term value investor
Chartered Asset Management increased its
stake to 13.5% from 12.8%. We spoke to
CSE Global’s management and understood
that there are no changes to its
fundamentals. With a greater proportion of
its shares held by long-term investors, we
believe there is lower downside risk to its
share price.
5.3% dividend yield attractive.
For a growth stock like CSE Global, we feel
that a 5.3% dividend yield is attractive. Our
projected dividends are based on the
following assumptions: (i) FY12F revenue of
S$551m (backed by an order-book of $487m
as of Sep 11), (ii) net margins of about 11%,
and (iii) a payout ratio of 40%. With the
group’s consistent track record in execution
and healthy industry dynamics, we see little
downside risk to our assumptions.
Watch out for the Australia LNG project
win.
We think that a potential catalyst could come
from Australia. According to media reports,
Alcatel-Lucent (a competitor to CSE Global)
has been awarded a contract by Bechtel to
build a communication network for the
Wheatstone LNG project. With this
development, the tender processes of other
LNG projects should be finally gaining
momentum. CSE Global has been
strengthening its position in Australia over
the past few years and it has a good chance
of winning a major LNG project work.
Maintain BUY with unchanged fair value
estimate of S$1.06. (Chia Jiunyang)
-------------------------------
Have no clue where they get the news of a new LNG project win. Maybe it was from their talk with CSE management.
CSE Global: Look out for Australia LNG
project win.
● Long-term investor increased
stake.
● 5.3% dividend yield attractive
● Look out for Australia LNG project
win
Long-term investor increased stake.
CSE Global’s shares fell by as much as 14%
(from end Nov 11) to $0.67 (a 30-month
low) in Dec 11, but subsequently rallied to
S$0.75 by the end of 2011. Since the start of
the year, its share price has also rallied by
another 17% to S$0.88. The Dec sell-off was
likely due to France-based institutional
investor Amundi Group selling down its stake
to below 5% (from 5.2%). Almost
immediately after, long-term value investor
Chartered Asset Management increased its
stake to 13.5% from 12.8%. We spoke to
CSE Global’s management and understood
that there are no changes to its
fundamentals. With a greater proportion of
its shares held by long-term investors, we
believe there is lower downside risk to its
share price.
5.3% dividend yield attractive.
For a growth stock like CSE Global, we feel
that a 5.3% dividend yield is attractive. Our
projected dividends are based on the
following assumptions: (i) FY12F revenue of
S$551m (backed by an order-book of $487m
as of Sep 11), (ii) net margins of about 11%,
and (iii) a payout ratio of 40%. With the
group’s consistent track record in execution
and healthy industry dynamics, we see little
downside risk to our assumptions.
Watch out for the Australia LNG project
win.
We think that a potential catalyst could come
from Australia. According to media reports,
Alcatel-Lucent (a competitor to CSE Global)
has been awarded a contract by Bechtel to
build a communication network for the
Wheatstone LNG project. With this
development, the tender processes of other
LNG projects should be finally gaining
momentum. CSE Global has been
strengthening its position in Australia over
the past few years and it has a good chance
of winning a major LNG project work.
Maintain BUY with unchanged fair value
estimate of S$1.06. (Chia Jiunyang)
-------------------------------
Have no clue where they get the news of a new LNG project win. Maybe it was from their talk with CSE management.