CSE Global reports higher net profit for FY2024 of $36.8 mil, up 63.2% y-o-y

CSE Global has reported a net profit of $36.8 million for the FY2024 ended Dec 31, 2024, up 63.2% y-o-y. For 2HFY2024, the group saw a 88.7% y-o-y increase in net profit to $21.7 million. 

In FY2024, group revenue increased 18.8% y-o-y to $861.2 million, primarily driven by the electrification and automation business segments in the Americas and Asia Pacific regions.

As such, group profit increased to $241.2 million for FY2024 by 20.7% y-o-y. Gross margin remained stable at 28%. 

Earnings per share for FY2024 came in at 3.91 cents per share. 

The group’s operating expenses for FY2024 rose 15.8% y-o-y to $187 million due to higher personnel costs, higher depreciation expenses and increased professional fees and computer expenses. Despite this, group operating profit and ebitda grew due to improved operating leverage and growth in revenue. 

In FY2024, the group’s electrification revenue, which remains the group’s key revenue contributor, grew 30% y-o-y to $434.8 million from major contracts secured in FY2023 and new projects secured in FY2024. 

See also: Hongkong Land reports wider losses for FY2024, non-cash provisions from Chinese build-to-sell business impacts profit

The communications segment saw “modest revenue growth” driven by newly acquired subsidiaries which added $7.2 million. Segment’s ebitda decreased 7.8% y-o-y due to unfavorable sales mix at lower gross margins for international communications businesses. 

The automation segment saw revenue growth of 14.3% y-o-y from the Americas and Asia Pacific region. Growth in segment ebitda was due to favourable sales mix at higher gross margins and absence of cost overruns incurred for some projects in FY2023. 

CSE Global’s cash inflow stood at $33.1 million in FY2024, and net debt position was $72.1 million as at Dec 31, 2024.

See also: LHN Group adds 45 new keys and 29 new facilities management contracts in 1QFY2025 business update

Net gearing ratio as at Dec 31, 2024 stood at 0.28 times, and total order book stood at $672.6 million, with the business segments of electrification, communications and automation contributing 58.7%, 14.9% and 26.4% to group order book respectively.

The group aims to focus on its electrification and communications business. It says it stands to benefit from the growing data centre demand in relation to the above two businesses. 

CSE Global has proposed a final dividend of 1.15 cents per ordinary share for the reporting period. This is a decrease from the 1.50 cents per ordinary share declared in the previous reporting period.