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Feb 2018

CSE Global Limited

(SGX: 544)
Cash-Rich & Poorly Managed Technology Specialist with Recurring Cash Flow
Trading at Depressed Valuation of ~P/E 7.9x (ex-cash) on 2018E NI
Significant Total Return Potential of >40% by 2019

Please email questions and comments to:


Jan F. Moermann
Havard Chi
This presentation is a research report and is for informational purposes only. Opinions expressed are solely those of Quarz
Capital Management, Ltd. and this is not a recommendation to purchase securities discussed herein. This presentation is
confidential and may not be reproduced or distributed without the expressed consent of Quarz Capital Management, Ltd.
Please refer to the next slide for additional disclosures.
Quarz Capital Management
As of the publication date of this report, Quarz Capital Management Ltd. and its affiliates (collectively "Quarz"), others that contributed research to this report and
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Global Limited) and stand to realize gains in the event that the price of the stock increases. Following publication of the report, the Authors may transact in the
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Quarz Capital Management
• Executive Summary – CSE’s Undervaluation
• Executive Summary – Our Recommendations
• Quarz’s Due Diligence on CSE Global
• The CSE Global Opportunity
• CSE Key Expertise
• CSE Key Markets
• Key Reasons for Undervaluation
• Quarz Recommendations for CSE Global
• Board Lacks Good Reasons to Oppose Quarz’s Strategy
• Potential Total Return for CSE’s Shareholders
• Analysis of Shareholder Base

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
Executive Summary – CSE’s Undervaluation
Quarz believes that:
• CSE’ s substantial undervaluation costs shareholders >40% of equity value:
 CSE is currently trading near its book value of S$0.34 share (mainly cash & working capital “liquidation value”)
 Zero value is accrued to CSE’s strongly recurring revenue model which generates net income of ~S$21.2m and
~S$13.3m/year in 2016 and 2017 (periods of depressed oil price)
 Substantial net cash of ~S$48m1/68m2 (~27%/38% of Mkt Cap)

• Clear reasons for the undervaluation:

 Board and management has destroyed ~ S$140m3 of shareholder value since 2015
 Net cash has been reduced by more than 50% from S$100m (2015) to S$48m (2017)
 Unanticipated and significant loss of S$16.8m due to OFAC4 settlement in 2017
 Write-down of S$37.9m of Account Receivables and Intangibles in 2017
Majority of current board and top management were present when the occurrences took place
 Sharp fall in Underlying Net Income from S$31m (2015) to S$13.3m (2017) even with S$28m of acquisitions
 Board and top management hold minimal shareholding (~2%) with 2017 remuneration projected to be ~S$3.5m,
>25% as a ratio to Underlying 2017 Net Income, despite severe loss of one-off loss of S$58.5m. Board and top
management remunerated themselves a generous S$18million from 2014-2016
 Investors’ poor understanding of the recurring nature of CSE’s revenue and the perception of CSE as purely an oil
& gas service player (despite 2017 EBIT mainly generated from sectors ex-O&G)
1:We consider CSE’s short term loans as net working capital as this sum is comprised of short term financing for the purchase of equipment and services for client’s projects (which
clients have committed to purchase)
2: Reduction of networking capital from S$72m to S$52m (increase in net cash by S$20m to S$68m) due to increased capital management efficiency (shorter receivables cycle)
3: Fall in share price from S$0.620 to S$0.347 (Fall in Mkt Cap from S$320m to S$ 178m)
4: Office of Foreign Assets Control, US Treasury Department
Source: Quarz Capital Management, CSE Global Limited
Quarz Capital Management
Executive Summary - Our Recommendations

Quarz Capital is building a substantial stake in CSE Global

We believe that CSE is severely undervalued and Management’s action has impaired the value of the business
Quarz is seeking to engage with the Board to evaluate all options to unlock shareholder value
On further price weakness, we intend to increase our stake and may propose measures in AGMs and EGMs to
expedite on value enhancement strategies (incl. the election of new board members and/or sale of the firm)

We recommend that CSE Global:

1 Immediately distributes S$18m as a special dividend (dividend yield of ~10%) to shareholders. CSE will retain
~S$30m of net cash (~$50m from increased efficiency in working capital) for acquisitions and new projects
2 Commits to distribute at least 80% of Net Income to shareholders with dividend payout floor of S$12.5m. This
provides an attractive dividend yield of ~7% from 2018 onwards. This is in view of CSE’s sizeable cash balance
3 Target Return on Equity of >10% (>S$17.3m of net income annually) through rightsizing of US business (profitable at
oil price of US$50/bbl, integrating subsidiaries and acquisitions, and reducing corporate expenses
4 Seize growth opportunities in structural growth areas such as the infrastructure segment in Singapore and
Australia (Australia first 15-Year Infrastructure Plan, Singapore Smart Nation Initiatives)
5 Increase in alignment of board, top management and shareholders’ interests
1) Transparent link between board and management’s compensation with total shareholder return
2) Increase proportion of share-based compensation which will vest over the mid- to long-term

Quarz believes that CSE can provide a total upside of >40% to all shareholders in the mid-term
with the implementation of Quarz’ Recommendations

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
Quarz’s Due Diligence on CSE Global
Quarz has carried out thorough research in collaboration with external advisors and partners to understand the
opportunity at CSE Global
Due Diligence Process

• In depth financial valuation and modelling

• Extensive evaluation of CSE’s business:
 System integration for process controls and telecommunications segments
Investment  Markets for these services in US, Australia and other parts of Asia
Team  Structural growth segments and potential sectors which CSE can expand to

Institutional • Strong relationship with research analysts from local and international investment banking firms
Investors and • Discussions and further due diligence with institutional and hedge funds (particularly with those
Analysts who are interested in investing and/or existing shareholders of CSE Global)

External • Consultant who specializes in system integration

Advisors and • Numerous industry experts with decades of experience
Industry • Renowned accounting firm
Experts • Corporate counsel from top tier full service law firm

Source: Quarz Capital Management, CSE Global

Quarz Capital Management
The CSE Global Opportunity - 1/3

The CSE Global Opportunity:

• Spin-off from Singapore Technologies in 1997 (management buyout)
• Leading process control and telecommunications system integrator
• Specialises in implementing mission critical systems in Oil & Gas, Infrastructure
(transportation, surveillance) and Materials sectors
• Asset-light business model with solid balance sheet and recurring cash flow
• Market Cap has corrected by ~45% since 2015 due to weak profitability:
 Falling commodity prices resulting in cut back of projects
 Unanticipated loss of S$16.8m due to OFAC settlement
 Substantial S$37.9m write-down of account receivables and intangibles
• CSE trades at a substantial undervaluation (P.E 2018E (ex-cash) of 7.9x,
EV/EBITDA of 4.6x) to its sizeable net cash/working capital holdings and Key Statistics
recurring income base
Last Price1 S$ 0.345
• Upswing in commodity prices, reduction in cost and exposure to structural
growth areas can drive future profitability 52-Week Range1 S$ 0.330 - 0.550
CSE’s Highly Liquid Asset Base Shares Outstanding2 516.1m
Cash+ Quoted Invt
Market Capitalization S$ 178.1m
Intangibles 17% Shareholder’s Equity2 S$ 173.9m
NAV/Share2 S$0.337
PPE Dividend/Yield2 0.275 / 8.0%
10% P.E (2018E) / Ex-cash 10.8x / 7.9x
Receivables EV/EBITDA (2018E) 4.6x
Inventories 56%
5% 1) Bloomberg data as of 23 Feb 2018
2) Based on CSE Global’s FY2017 Financial Statement

Total Assets: S$ 283.6m

Total Liabilities: S$ 109.8m
Source: Quarz Capital Management, CSE Global Limited
Quarz Capital Management
The CSE Global Opportunity - 2/3

Share price does not account for value of operating business:


240 • CSE currently trades near its Liquidation

220 Upside of Share price does
~50% not account for
operating business
200 to Mkt S$146m Net Cash (S$ 48m) + Net Working
180 Value of Capital (S$ 72m)
$ 198m

P/E of
12x 18E 70% of Current Mkt Cap
S$ million


120 • Investors receive:

Price S$ Capped S$52m
@ S$ 178m Downside Recurring Revenue Business
80 0.345 Liquid Assets
(Net cash and 1. Generates 2018E Net Income of S$16.5m
60 S$20m
equivalent to
2. Valued at S$198m (Conservative P/E 12x)
40 ~70% of Mkt

0 Potential Upside of ~50% to CSE’s

Current Mkt Cap CSE's Valuation
Net Cash Incremental Cash Net Working Capital Current Share Price
Source: Quarz Capital Management, CSE Global Limited
Quarz Capital Management
The CSE Global Opportunity - 3/3

CSE’s stock price has remained weak despite recovery in oil price:
Brent Crude Oil Price and FTSE Oil and Gas Index normalised to CSE Global’s Brent @
Share Price of S$ 0.46 on 31st Dec 2015 US$67/bbl
Hurricane Harvey and
Nate reduced US oil
--Brent Oil production in GOM
--FTSE Straits Times Oil & Gas
--CSE Global Stabilisation/increase in oil price due to OPEC’s implementation of oil
production cut and stronger global economic growth
Sharp divergence in
Put legend the performance of
CSE’s share price,
Brent oil and FTSE
ST Oil and Gas
Unanticipated Discount to close?
OFAC settlement
loss of S$16.8m Declared interim
dividend (S$

Weak 1H17 results - ↓45% YoY in underlying NI to S$6.5m (-S$10.7m

Brent oil price when including one-off)
bottomed at
US$28/bbl CSE announced write-down account receivables and intangibles in 4Q17

Source: Bloomberg, SGX, Quarz Capital Management, CSE Global Limited

Quarz Capital Management
CSE Key Expertise - 1/2

Process Control System:

• Comprises ~70% of CSE’s revenue
• Implements (design, setup, maintain & upgrade) automation/control systems that
integrate and manage various processes for clients
• Implemented systems enable clients to centrally monitor and manage their processes
(e.g. control system in subsea oil production facilities, pipelines, refineries,
• Focus on oil & gas, infrastructure and materials segments
• Potential to transfer expertise to other business segments (e.g. Power & Utilities,
Pharmaceutical, High-Tech Manufacturing)
• Sample Projects: ERP, ERP-2, Inpex LNG

Communications & Surveillance Systems:

• Comprises ~30% of CSE’s revenue
• Implements telecommunications and surveillance systems for large scale facilities and
networks especially in harsh environment (mining, petrochemical, power, airport)
• Satellite Communications Systems (VSAT) Fibre Optic, CCTV Surveillance, Intercom,
microwave/spread spectrum systems
• Project examples: Ichthys LNG/FPSO plant/vessel, Gold Coast Light Rail, City of
Perth, Victoria Emergency Services Telecommunications, Royal Adelaide Hospital

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
CSE Key Expertise - 2/2

Competitive Advantage of CSE: Design

• High barriers to entry: Engineering

 Strong emphasis on reliability (near zero failure tolerance) to FEED and

minimise expensive downtime risk (control of processes are wholly Project
dependent on CSE’s systems) Services

 Strong reliance on execution track record and long term relationship

 High rate of repeat and tier one customers (e.g. BP, Exxon, Chevron) Integrated
• Recurring revenue from maintenance and upgrade projects on existing Support and Solutions Procurement
systems: Maintenance
 Increased regulatory and safety standards for operations Provider
 Structural trend to increase automation in processes to reduce
manpower costs Installation and System
Commissioning Integration and
 Competitive advantage in bidding for projects with CSE’s Testing
implemented systems

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
CSE Key Markets – Americas & EMEA

Overview / Performance Recovery in order book to 16

140 drive earnings recovery in
• Accounts for ~60% of revenue but ~8% of EBIT in 2017 14
120 12
• Mainly focuses on implementing process control systems for Oil & Gas industry
100 10
• One of the top system integrators in the Gulf of Mexico (implemented ~60% of all Master
Control Systems) 80 8

• Top tier clientele base: Anadarko, BHP, BP, Chevron, Exxon Mobil 60
• Competitive advantage driven by sizeable installed base (recurring revenue from 40
maintenance and upgrading projects) 2
• Profitability has slumped since 2015 due to reduction of new projects and postponement 0
of maintenance and upgrade capex 0 -2

• Stabilising/increasing oil price has resulted in rebound in enquiries and order book – -20 -4
stronger results forecasted in 2018 Order Book Revenue EBIT (RHS)

Quarz Recommendations
 More aggressive adjustment of cost base to adapt to potential new
normal oil price of US$ 50/bbl
• Profitable at oil price of US$ 50/bbl based on maintenance and upgrading contracts
 Major partners such as FMC, local asset light peers and suppliers of automation
equipment have demonstrated positive EBIT in 2017
• Minimum Return on Equity (ROE) target of 10%
• Shut down non-viable business units/decrease overcapacity

 Expansion to other business segments

• Expedite on extracting full value from completed acquisitions and grow organic
capability to expand into shale segment (increase sales per well) and other profitable
growth sectors (.e.g. manufacturing, pharmaceutical)

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
CSE Key Markets - Asia Pacific

Overview / Performance Strong order book provides

revenue visibility
120 8
• Contributes 40% of revenue but ~90% of EBIT in 2017
100 7
• Implements mix of process control and telecommunications systems for mainly
infrastructure and mining projects 6
• Leading communications solutions integrator in Asia Pacific 5
• Acquisitions in Australasia have solidified CSE as a leading communications system 4
integrator in the region - operates Australia’s largest commercial digital radio network 40
‘Orion’ (used by transport, government, security (police, prison), fleet tracking and 3
utilities) 20 2
• Sizeable order book provides strong revenue and EBIT visibility in 2018E
0 1
• Growth potential supported by increasing government spending on infrastructure and
surveillance projects (integration of systems and information to increase management
efficiency) Order Book Revenue EBIT (RHS)

Quarz Recommendations
 Strengthen market share in key markets
 Seize more opportunities in ‘smart city’ initiatives
• Integrate acquisitions and key subsidiaries to strengthen capability
• Focus on growing capabilities organically
• Active engagement and participation to secure projects that leverage on
Singapore’s Smart Nation initiative and Australia’s first 15 year infrastructure Plan
 CSE has a strong track record in government projects (system integrator in ERP
1 and 2, multiple projects for Ministry of Home Affairs, MINDEF). Track record
from SG can be used to win projects in other markets
 CSE supports the South Australia Police/Fire Service, City of Perth, Charles
Gairdner & Royal Adelaide Hospitals, Gold Coast Light Rail Systems, Gladstone
CBD in their digital voice and data infrastructure solutions
Source: Quarz Capital Management, CSE Global Limited
Quarz Capital Management
Key Reasons for Undervaluation - 1/4

Items / Comments
Inadequate Cost and Operational Discipline over the Utilization of Substantial Net Cash
• Substantial one-off loss totalling ~S$58m in 2017 did not elicit any changes in Board and top Management
 Loss of S$16.8m in OFAC settlement
 Write-down of S$38m in account receivables and intangibles
Losses have been labelled ‘legacy issues’ despite most of them present during the occurrences
• Substantial loss of capital has triggered speculations of a reduction in dividend
• ~S$28m used in 7 acquisitions since 2015 have not cushioned the continued sharp slide in profitability
Strategy Misalignment of Board and Top Management’s interest with Shareholders
• Board and top Management’s 2017 remuneration projected to be in excess of >S$3.5m despite weak
Underlying Net Income of >S$13.2m (>25% ratio). Remuneration is more than >100% of Net Profit in
consideration of the substantial one-off loss
• Annual remuneration exceeds the combined value of their shareholdings in CSE
• Sizeable remuneration of S$18m from 2014-2016
Lack of Strategic Direction and Inability of Firm to leverage on New Growth Drivers
• CSE has been unable to leverage on its engineering expertise and track record to secure key projects in
relation to the ‘Smart Nation’ initiative in Singapore

Weak Investors Communications:

• Misperception of the firm as purely an Oil & Gas service firm
• Lack of understanding on the recurring revenue and asset light nature of CSE’s business
• Investors lack understanding on drivers of CSE’s business and management’s strategic plans

Source: Quarz Capital Management, CSE Global

Quarz Capital Management
Key Reasons for Undervaluation - 2/4

CSE’s board and management has destroyed S$140m of shareholder value (fall in
share price by ~40%) over the last 3 years

• Fall in net cash by ~50% from S$100m (2015) to S$48m (2017)

 S$16.8m utilised in OFAC settlement
 Substantial S$12m write-down of account receivables
 S$28m used in acquisitions (management still looking to spend more)

• Fall in underlying Net Income by ~65% from S$34m (2015) to S$13.2m (2017)
 2017 Net Loss exceeded S$39m when considering settlement and write off of intangibles and
account receivables

• Compensation of Board and Top 5 Management totalled S$18m from 2014-2016

 2017 compensation projected to exceed S$3.5m (>25% of Underlying Net Income) despite the
massive loss suffered by shareholders

CSE’s Board and top Management continue to be well remunerated despite the dire performance of CSE’s
operations and share price performance

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
Key Reasons for Undervaluation - 3/4

% of remuneration has increased despite drop in Net Income

120 30
Consistently increasing
ratio of compensation vs • Compensation of Board of Directors and top
decline in profitability
Management projected to increase to >25% as a
100 25
ratio of underlying 2017 Net Income (~13% in
• Remuneration to exceed >100% of 2017 Net
80 20 Income when including substantial one-off
shareholder loss totalling S$58.5m (who is
Ratio of compensation at responsible for the loss?)
>100% of 2017’s NI when • Substantial decline in underlying Net Income by
60 15
accounting for the ~65% since 2014 has outpaced the reduction in
substantial settlement and
compensation of 30-45%
write-down of account
receivables and intangibles • Sharp fall in profitability despite spending
40 10
S$28m of shareholders’ funds in acquisitions
since 2015
• CSE’s board and management hold minimal
20 5 shareholding of CSE (~2.1% or S$3.8m) despite
yearly compensation in excess of S$4.4m in
2016 and >S$ 7.5m/year from 2012-2015
0 0
2012 2013 2014 2015 2016 2017
Net Income Ratio of Directors & Top Mgmt Compensation RHS (%)

Source: Quarz Capital Management, CSE Global Limited, Bloomberg

Quarz Capital Management
Key Reasons for Undervaluation - 4/4

Steep decline in Net Income despite S$28m of acquisitions since 2015

0.65 S$10m in 4 acquisitions 10
Bought Mobile Bought Bought TEZI Bought Comm8
0.60 Masters (Australasia) Tetracom Comms (Australasia) 9
(Australasia) (Australasia)
Bought Crosscom Bought CC Bought Gulf Coast
0.35 (Australasia) for American Oilfield Power and Co 3
S$5.1m (USA) for S$6.1m (USA) for S$7.0m
0.30 2
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18
Share Price Quarterly Net Income (RHS)

1. ~S$28m of shareholders’ funds used on acquisitions to extend CSE’s capabilities:

 To increase geographic reach of CSE’s system integration services across Australasia
 To obtain a majority share of Orion Network - largest commercial 2-way radio network in Australia utilised in critical
environment (e.g. airports, ports, stadiums, government and transportation)
 To increase CSE’s capabilities in serving onshore, mid and downstream oil and gas clients in the US
2. BUT income from acquisitions has so far failed to cushion the continued and steep slide in profitability
3. CSE’s management can/should do MORE to contain cost base and extract value from acquisitions

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
Quarz Recommendations for CSE Global

Items / Comments
Instil Higher Level of Operational and Cash Discipline
• Immediate distribution of S$18m of excess cash to yield a special dividend of ~10%. CSE retains net cash
of S$30m (S$45m considering increased efficiency in working capital) to capitalise on opportunities
• Commit to pay at least 80% of Net Income as dividend with a dividend pay-out floor of S$12.5m (~7%
dividend yield)
• Emphasize on growing organic capabilities vs acquisitions with high proportion of intangible assets
• Clear Return on Equity target of at least 10% (>S$17.3m per annum)
Seize Growth Opportunities in Structural Growth Areas
Strategy • Take advantage of strong engineering expertise and track record to expand into adjacent areas of growth
• Singapore Smart Nation initiatives and Australia 1st 15-year Infrastructure Plan can provide attractive growth
• Establish firm as thought leader in these areas
Increase alignment of Board, Top Management and Shareholder’s Interests
• Transparent link between board and top management’s compensation with total shareholder return
• Increase the proportion of share-based compensation which will vest over the mid-term and open the
fulfilment of clear mid- and long-term performance indicators\

Improve Investor Relations

Communication • Increase the quality of reported information on the operations of the company
• Increase coverage by sell-side analysts

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
Board Lacks Good Reasons to Oppose Quarz’s Strategy

Potential BoD Pushback Our Response

• Post special dividend, CSE will still retain a substantial net cash position of S$30m of net cash
“Given the changing dynamics (S$45m considering increased efficiency in working capital) to take advantage of opportunities
of the business, management
needs cash to reinvest • CSE’s business model is asset-light (no requirement for product facilities etc.)
(organically/though M&A) to • The firm would have additional net cash if not for the loss of S$ 16.8m (OFAC settlement) and
drive future growth” S$12m (write-down of account receivables). The majority of CSE’s current board and
management were present when the occurrences took place
• Shareholders have funded S$28m in 7 acquisitions over the past 2 years
“Hard to build organic • We believe that the emphasis should be on integrating, leveraging from the capabilities and
capability in other fields extracting full value from these acquisitions
without acquisitions “ • CSE’s acquisitions usually entail a substantial level of intangible assets (e.g. customer
relationship, reputation) resulting in higher risk of potential losses
“Management has taken steps • CSE’s overall EBIT has fallen by more ~50% from S$38m in 2015 to S$19.6m in 2017. This is
to reduce cost base. substantially more than the reduction in headcount and board and top management’s
Americas/Total headcounts have compensation
been reduced by 6%/11% since • Greater efforts can be made to reduce cost and increase the efficiency of the organization
4Q15. Board and top such as integration and reduction of subsidiaries and acquisitions including streamlining of
management remuneration has corporate and admin cost
been reduced by 28% from • There should be a better correlation between management remuneration and their ability to
2014 to 2016” create value for shareholders
“Close alignment of board, top • Combined value of their shareholding (~2.2% of total shares) is less than their yearly
management and shareholder’s remuneration and can hardly be termed as sufficient
“If cash flow declines, the • If the Board is concerned about the decline in cash flow, it should place greater emphasis on
dividend may have to be cut at cost management and growing CSE”s business
some point in the future and • Our recommendation of reducing acquisitions and focusing on organic growth will provide a
investors will view that cash buffer and provide new cash flow to maintain an attractive dividend yield for
negatively” shareholders
Source: Quarz Capital Management, CSE Global Limited
Quarz Capital Management
Potential Total Return for CSE’s Shareholders
>40% upside potential with implementation of Quarz recommendations
5 1 Payment of S$0.015 of dividend per
Conservative S$ share for 2H17 (already committed)
P/E of 12x 18E 0.039
2 Return of S$18m of excess capital to
0.460 provide a dividend yield of ~10%. CSE
still retains S$30m (S$45m considering
tighter working capital) to deploy in
Upside in
0.039 future projects
of ~40% 3 S$ 3 Commit to pay 80% of 2018 NI due to
significant cash balance
0.026 Yield
4 Commit to pay 80% of 2019 NI due to
0.400 2
of ~33%
S$ 0.115
significant cash balance
0.380 S$ 5 CSE to trade at conservative P/E 18E
1 0.035 of 12x (Net Income of S$16.5m) due to
S$0.015 improved understanding of the intrinsic
value of CSE Global –
 Recurring revenue business model
S$ 0.152  Exposure to growth in infrastructure
Equity of S$ 0.337/share (~43% short to mid segment and recovery in revenue
0.320 mainly comprised of term upside) from the oil and gas sector
S$ Cash (S$0.093/share)
and working capital  Efficient capital allocation
0.300 (S$0.140) to protect
downside (liquidation value)
Current 2H17 Special 2018E 2019E Trade at Mkt Total Upside
Share Price Dividend Dividend Dividend Dividend P/E

Source: Quarz Capital Management, CSE Global Limited

Quarz Capital Management
Analysis of Shareholder Base
Description of shareholder base
• Tan Mok Koon is one of founders who led the management buyout of
CSE Global in 1997. He was CSE’s Managing and Executive Director
before stepping down from both positions in 2013 and 2014. Mr Tan was
previously with Singapore Technologies, Honeywell and Esso Singapore.
Mr Tan partnered with CSE to acquire a 66% stake in Power Diesel Shareholding Level
Engineering in 2013 for S$8.7m before the subsequent divestment of the
stake in 2015 for a profit of S$2.2m. Tan Mok
• Fidelity is one of the biggest investment management firm globally with
AUM in excess of US$ 2 trillion. Its investments in CSE Global are mainly 12%
held by the Fidelity Low Priced, Northstar, Asian Smaller Companies and Fidelity
Asia Value funds. The firm has been invested in CSE since 2004.
• Chartered Asset Mgmt (CAM) is the largest shareholder of CSE Chartered
Global. The boutique fund manager is helmed by Mr. Colin Lee. The firm
Asset Mgmt
Free Float
has a long term investment philosophy and manages a concentrated
portfolio of 15-20 stocks which it has conducted extensive due diligence 10%
on. CAM has been a substantial shareholder of CSE since 2005. 57%
Invt Partners
• Edgbaston Investment Partners is a boutique investment
manager which specialises in Asia ex-Japan equity investment. The 5%
company was formed with the support and backing of Silchester
Norges Bank
International Investors. Edgbaston filed its substantial stake in CSE in
June 2016 (average price of S$ 0.4/share) Board & M&G
• Norges Bank is the sovereign fund of Norway Management 2%
• M&G is the investment management arm of Prudential. It’s investment in
CSE is held by M&G Asia fund.

• CSE’s Board and Management holds altogether ~2.2% of CSE

shares. Most of the shares are held by Lim Boon Kheng (CEO, 1.4%) and
Lim Ming Seong (Chairman, 0.6%)
Source: Quarz Capital Management, CSE Global Limited, Bloomberg
Quarz Capital Management

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to helping the Company realize full value for all shareholders

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