From Seet’s perspective, he believes that the recent resignation of Tan will not affect the core fundamentals of CSE Global and there will be no adverse impact on CSE’s management personnel in the performance of its duties.
“Meanwhile, CEO Lim Boon Kheng has increased his stake in the company from 3.7% to 3.71% by taking up the option of a scrip dividend, highlighting his confidence in the core potential of the company,” Seet states.
The Maybank analyst also thinks that Tan’s resignation may also act as a check while also highlighting that management is the company’s key value driver.
On the business side of things, Seet predicts that CSE Global will incur higher than normal up-front costs from labour and rent in 1HFY2026, especially with the new site before it ramps up.
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“As a result, we expect margins to be impacted in 1HFY2026. Margins should improve in 2HFY2026 after the ramp-up of the new site. With the new-leased facility ready, production for its data-centre client is now in the midst of ramping up, and we expect q-o-q revenue improvement, especially from 2QFY2026 to 3QFY2026,” Seet predicts.
Apart from that, Seet foresees that CSE Global’s key data centre client could potentially channel more orders to the company if it could complete its orders at a much faster pace.
Overall, Seet remains bullish on CSE Global’s outlook and sees potential for a multi-year growth story. “The company expects to more than triple capacity by FY2027 and FY2028, and we expect it will secure another data centre client by 1QFY2027,” Seet predicts.
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As such, he is keeping a “buy” recommendation on CSE Global with unchanged target price of $2.25 and he sees CSE Global as a proxy for the AI data centre boom in the US.
Meanwhile, Alfie Yeo of RHB Bank Singapore sees the recent share price volality in CSE Global was mainly due to internal disagremeent. "With Tan's exit and the clarification made this week, we believe that the direction of CSE Global's growth will continue in the way that it has intended, steered by the chairman and the Board," Yeo says.
Yeo believes the resolution should stabalise CSE Global's stock volatility, barring any major developments to the strategic review. "Otherwise, we see earnings growth being driven by the US$1.5 billion worth of Amazon orders that are anticipated over the next five years. We have projected a sturdy 27% earnings CAGR for FY2025 to FY2028," Yeo predicts.
As such, Yeo is keeping "buy" on CSE Global with a target price of $1.94, which represent a potential upside of 42% with FY2027 dividend yield potentially at 3%.
"Following this week’s clarification to the SGX, the Board is now more aligned to take company forward. CSE Global, valued at below 1 time PEG ratio, is trading at around 20 times forward P/E – which is below its FY2025 - FY2028 earnings CAGR of 27%," Yeo concludes.
As of 9.28am, Shares of CSE Global are trading 2 cents higher, or 1.39% up at $1.45.
