This will likely be welcome news for CSE, which has faced supply chain issues since the third quarter of its FY2021 ended December 2021, affecting equipment deliveries and project revenue recognition.
CGS-CIMB Research analysts have maintained their “hold” recommendation for CSE Global with an increased target price of 45 cents from 37 cents previously, citing quicker order book executions as supply chain disruptions ease.
In their report dated July 20, Kenneth Tan and Lim Siew Khee note that the latest data from the Global Supply Chain Pressure Index, a gauge of global supply chain issues, showed that the index fell to a 14-year low in May, indicating that supply chain pressures have begun to abate “meaningfully”.
