Jarick Seet of Maybank Securities has maintained his "buy" call and 65 cents price target on CSE Global 544 , after the engineering firm won new orders worth some US$110.2 million.
As at Sept 30, CSE Global’s order book reached an all-time high of $638 million.
According to CSE Global, the two contracts are for the design and manufacturing of power distribution centres slated for execution from 2024 to 2025.
Seet believes that CSE Global, led by group managing director Lim Boon Kheng, is well poised to capture the growing trend of "electrification" due to its expertise in electrification solutions which will be key to securing US infrastructure projects and breaking into segments like data, and battery storage centres.
"We expect the US contribution to grow significantly in the next 2-3 years by 100-200%," writes Seet in his Oct 31 note.
Seet believes that the current drop in CSE Global's share price is a "buying opportunity" and that this is a stock that offers a "unique opportunity" to ride the upcycle in attractive growth areas, accompanied by a sustainable 7.0% dividend yield.
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Seet's target price of 65 cents for CSE Global, his top pick in the small and mid-cap space, is based on 15.5x FY24E P/E.
CSE Global closed Oct 31 at 41 cents, up 3.8%.
