Seet, who has kept his “buy” call and 84 cents target price, predicts that a win on these hyperscaler clients would help add to significant earnings growth for FY2026 to FY2028.
Previously, CSE Global made a strategic move to reserve capacity and to focus on clients in the data centre and utility spaces. In Aug 2025, the company unveiled a $59 million data centre extension order from its existing US hyperscaler customer.
He expects CSE Global’s gross and net margins to improve once the larger orders are secured in 2HFY2025. With better operating leverage, the company is set to enjoy better margins too.
In the most recent 1HFY2025, CSE Global’s gross and net margins both improved to 27.9% and 3.7%, respectively, from 27.6% and 3.5% in 1HFY2024. Revenue grew 2.8% y-o-y to $440.9 million despite the depreciation of USD vs SGD.
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The analyst predicts that CSE Global’s management will likely expand its capacity in the US more aggressively if the large orders are secured. Currently, it expects to more than triple its capacity by FY2027 and FY2028.
“We remain bullish on CSE Global’s outlook and see potential for a multi-year growth story,” says Seet.
On top of earnings growth, Seet also highlights that CSE Global’s 50% dividend payout guidance will provide stability for shareholders along with upside from its positive outlook.
CSE Global shares traded at 72 cents as at 2.50 pm, up 9.02% for the day and up nearly 73% year to date.
