“The projects involve designing and manufacturing power distribution centres, as well as integrating complex electrical and control systems and equipment for the LNG market in the US,” says Yeo.
Meanwhile, the timeline for the execution of the contracts is expected to be between 2026 and 2028.
“In contrast, the variation contract with its existing hyperscaler customer for the data centre (DC) market involves designing, engineering, fabrication, installation and integrating power management systems and solutions,” Yeo adds.
According to him, the variation contract work is in the US, and is worth US$143.5 million ($186.3 million).
From Yeo’s perspective, CSE Global has been building a strong momentum of orders from the fast-growing DC market, driven by the growing demand for cloud services and he expects this variation contract to contribute positively to group numbers to FY2026.
Meanwhile, CSE Global previously announced that it is issuing 63 million warrants to its customer, Amazon, in a commercial agreement that will see the company receiving US$1.5 billion worth of orders from the e-commerce giant over the next five years.
CSE Global further updated in Dec 2025 that it had received approval in principle from the Singapore bourse for the listing and quotation of these warrants on the SGX-ST’s Mainboard, subject to written undertaking and confirmation that it will comply with certain rules in the listing manual.
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“Overall, we remain upbeat on CSE Global and have already imputed an 8% dilution to EPS on the warrants issuance, and imputed a better earnings outlook in anticipation of Amazon’s upcoming orders.”
“The recent order wins will support our earnings estimates going forward. We see strong earnings growth next year, fuelled by Amazon’s orders that are valued at an average of $400 million a year. Our earnings estimates remain unchanged,” predicts Yeo.
As such, the analyst reiterates his “buy” call on CSE Global with an unchanged target price of $1.22, which represents a potential upside of 14%, with a 3% FY2026 dividend yield.
“We continue to like CSE Global for its positive prospects, led by upcoming Amazon orders in the coming years. Its orderbook ($467 million as of Sep 2025) is now bolstered by further order wins, which should support core earnings growth.”
“CSE Global’s warrant issue to Amazon is positive, in our view, with growth backed by the latter’s planned US$1.5 billion over the next five years. Target price is based on 20 times FY2026 P/E ratio,” concludes Yeo.
As at 9.55 am, shares in CSE Global are trading 1 cent higher or 0.93% up at $1.08.
