Broker: CGS International
Date of Report: July 27, 2026
Excerpt from CGS International report.
Report Summary
Stock: CSE Global (CSE SP)
Action: Add (Reiterate)
Target Price: S\$2.00
Current Price: S\$1.22
Upside: 63.9%
Most Important Idea: CSE Global is well-positioned to benefit from robust demand in data centre (DC) electrical equipment, particularly through its deepening relationship with Amazon Web Services (AWS). The main current constraint to growth is not demand or production space, but upstream copper supply, which is an industry-wide issue. CGS International expects this bottleneck to be resolved by 4Q26F, which could unlock further growth.
Highlights:
- CSE is the third-largest supplier in AWS’s DC electrical equipment programme, currently generating about US\$20–23m in monthly revenue from AWS with a 15–18% market share. AWS has shifted to larger, longer-term orders, with another large AWS order possible in 4Q26F.
- The new Champion facility, dedicated to AWS, has the capacity for significantly more production (up to c.US\$500m annual revenue at full ramp), but output is capped by copper supply and fabrication constraints, not demand or plant capacity.
- CGS International reiterates its Add call, with a target price of S\$2.00, viewing the copper constraint as a timing issue, not structural. The FY26F EPS forecast is cut by 7.6% due to slower revenue recognition, but FY27-28F EPS remains largely unaffected.
- Further catalysts include resolution of copper supply issues, additional large-scale electrification wins, and capacity expansion. Risks include cost overruns and slower-than-expected order intake.
- CSE is also diversifying into AI-focused data centre customers and communications infrastructure with the acquisition of SEI Wireless Solutions, targeting incremental profit growth and cross-selling opportunities.
Implications: The key actionable insight is that CSE Global is a prime beneficiary of the ongoing data centre infrastructure boom, with significant upside potential contingent on copper supply normalisation. Investors should focus on the timing of copper bottleneck resolution as the main catalyst for further upside.
Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website.
CGS International research website
