CSE Global's AWS Growth Hinges on Copper Supply Resolution
CSE Global, a Singapore-based company, is poised to benefit from the growing demand for data centre electrical equipment. As the third-largest supplier in Amazon Web Services' (AWS) programme, CSE Global generates approximately US$20-23 million in monthly revenue with a market share of 15-18%. This partnership has been instrumental in driving growth, and with another large AWS order possible in 4Q26F, the company's prospects look even brighter.
However, there is a bottleneck to growth - copper supply. The new Champion facility, dedicated to AWS, has significant capacity for production but is currently capped by copper constraints, not demand or plant limitations. CGS International expects this issue to be resolved by 4Q26F, which could unlock further growth.
CGS International maintains its 'Add' call on CSE Global with a target price of S$2.00, viewing the copper constraint as a timing issue rather than structural. The forecast for FY26F EPS has been cut by 7.6% due to slower revenue recognition, but EPS forecasts for FY27-28 remain largely unaffected.