This comprehensive report provides a detailed analysis of the key listed companies covered in the latest research update by Lim & Tan Securities. The report delves into the performance, financial highlights, and strategic outlook of each company, along with the recommendations provided by the research analysts. Read on for an engaging exploration of market dynamics, performance metrics, and growth expectations for each company.
Singtel: Robust Profit Surge and Growth Outlook
Singtel’s business update for the third quarter ended 31 December has been one of the standout performances in this report. The telco giant achieved a dramatic improvement in net profit, which soared by 183.4% to S\$1.3 billion from S\$465 million in the previous year’s comparable period. This remarkable turnaround was largely driven by an exceptional gain of S\$639 million, a stark contrast to the S\$94 million exceptional loss recorded in the corresponding period last year.
Underlying net profit showed a healthy increase of 21.6%, climbing to S\$680 million, and was 22.7% higher in constant currency terms. Operating revenue also managed a modest rise of 1% to S\$3.6 billion, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw an incremental improvement of 0.9% to S\$943 million. These results were underpinned by the strong performances of Optus and NCS, together with increased contributions from regional associates Airtel and AIS.
Looking ahead, Singtel is targeting high-teens to low-twenties percentage growth in earnings before interest and taxes (EBIT) for FY2025, after excluding contributions from its associates. The group now expects to pay a total dividend of approximately S\$0.165 per share for FY2025. With a market capitalization of S\$54,989 million, FY25F P/E of 18.5x, a current P/B ratio of 2.3x, and a dividend yield of 4.9%, Singtel is well positioned for continued growth. The report maintains an ACCUMULATE recommendation on Singtel, with Bloomberg consensus target price set at S\$3.75—representing an 11.3% upside from the current trading level of S\$3.37.
CSE Global: Order Growth and Strong Execution Drive Buy Recommendation
CSE Global, a prominent global systems integrator, delivered a robust update for its fourth quarter (4Q2024). The company secured an impressive S\$235.3 million in new orders during the quarter, including a significant electrification contract worth S\$90.7 million. Despite a lower electrification order intake compared to 4Q2023 due to the absence of major projects secured in the previous year, the overall new order intake increased by 18.6% year-on-year when excluding the effect of these major contracts.
Breaking down the sources of new orders, the Electrification segment led the charge by capturing S\$139.8 million, representing around 59.4% of the total order intake. In addition, the Communications segment contributed S\$55.7 million and the Automation segment secured S\$39.8 million in new orders. The Automation business, after excluding a major contract from 4Q2023, experienced a substantial 41.4% increase in order intake year-on-year.
With an impressive order book of S\$672.6 million as of FY2024’s close, CSE Global’s market capitalization currently stands at S\$325 million. The company trades at an attractive 11.9x forward P/E and 1.3x P/B, and offers a dividend yield of 5.9%. Based on these strong order intake figures and positive guidance for order intake momentum in 2025, the report issues a BUY recommendation on CSE
