CSE Global - OCBC Investment 2016-01-20: Acquired assets from C C American Group for S$8.7m

CSE Global - OCBC Investment 2016-01-20: Acquired assets from C C American Group for S$8.7m CSE GLOBAL LTD 544.SI 

CSE Global Limited: Acquired assets from C C American Group for S$8.7m 

  • CSE Global Limited’s (CSE) announced that it has acquired certain assets of C C American Group (CCAG) for an aggregate consideration of ~S$8.7m, with an additional S$1.1m to be payable if CCAG achieves the PBT targets of US$4m for 2015 and 2016. 
  • CCAG is in the business of manufacturing and repairing pressure vessels for wellhead oil and gas production. It also manufactures and services production equipment such as fuel scrubbers and line heaters. 
  • We note that being in the oil & gas sector, CCAG will likely be one of those impacted by the oil rout but we believe this acquisition will help CSE strengthen its geographical presence in the Eagle Ford shale region. 
  • Nonetheless, given the current oil & gas conditions, we do not expect significant impact from this acquisition on CSE for now and we keep our forecast unchanged. 
  • Maintain BUY with FV of S$0.54. 



Eugene Chua OCBC Securities | http://www.ocbcresearch.com/ 2016-01-20
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 0.54 Same 0.54


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