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Singapore “Flyer” of the Week: CSE Global Limited

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CSE Global (SGX: 544), a firm that provides cost-effective and integrated solutions to industries in the automation, telecommunications, and environmental sectors, has increased by 6.7% so far since last Friday. It closed at $0.635 on Thursday.

The company, established in 1985, was once part of the engineering projects division of Chartered Electronics Industries, the electronics arm of Singapore Technologies Engineering (SGX: S63). Eventually, a management buy-out took place in 1997 and it became a listed company two years later. It has great international presence in areas such as the Americas, Asia Pacific, and Europe; despite being a locally-listed company, international revenue accounts for more than 95% of its total sales.

On 4 July 2014, CSE announced that its 80%-owned subsidiary, S3 ID Pte. Ltd., had incorporated a wholly-owned subsidiary in Malaysia called S3 ID (Malaysia) Sdn Bhd. The main activities of the new subsidiary will involve research and development and implementation of tracking personnel products.

On the same day, CSE also made public that its wholly-owned subsidiary, CSE (Americas) Pte. Ltd. had subscribed for an additional 36 new ordinary shares in its wholly-owned subsidiary company, W-Industries of Mexico, SA de CV. The cash outflow for the investment would be around S$ 214,329 and will be paid using a loan.

CSE Global is trading at three times its historical earnings and has a dividend yield of approximately 6% (excluding the special dividend of 29 cents per share that was paid out in the last financial year).

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.