CSE Global attracting big-name fund investors

Why are Chartered Asset, Fidelity and Amundi all flocking to this supposedly sinking technology company?

It seems that after a disastrous FY11 when profits crashed by 11% after execution failures with its two Middle East telecom projects, CSE Global has managed what could turn out to be a record-breaking rebound.

"CSE has fully recovered, reporting a net profit of $12.6m in 1Q12, flat YoY but up 34% QoQ. So far, the provision has been sufficient to contain the cost overruns," said Maybank Kim Eng in a stock update.

Here's more from Maybank Kim Eng:

2012 looks set to be a record year. Average new orders received as at 1Q12 stood at SGD130m, up about 20% from a year before. Consensus expects CSE to earn SGD58m on average in 2012, above the 2010 peak of SGD52.5m. As a measure of street confidence, even the lowest 2012 estimate of SGD55m exceeds the 2010 earnings peak. Of course, 2012 will be helped by a relatively recent acquisition, Australian telecom specialist ASTIB.