CSE Global Strong management and solid fundamentals
Story: We attended post-results briefing of the company where business heads from the US, Europe and Australia, updated us on the progress in their region.
Point: Three key takeaways from the briefing are
(1) the risk from foreign currency exposure is minimal due to the natural hedge.
(2) Estimated order backlog by the end of FY07 should be up 21% y-o-y and continue to strengthen every year.
(3) Organically, the company should be able to grow its earnings at about 30% CAGR in the next three years. Relevance: Maintain BUY at a target price of S$1.63 based on 15x FY08 earnings. Re-rating catalyst for CSE Global would be securing the healthcare project in the Southern cluster of the UK around Dec 07.
Friday, November 16, 2007
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment