CBHB: Significant Contract Win Bolsters Order Book, Enhancing Future Outlook

PublicInvest Research has maintained its “Outperform” call on CBH Engineering Holding Bhd, reiterating a target price of RM0.41 per share. This follows a significant contract win that further solidifies the group’s order book and future earnings visibility. The target price is based on an estimated 17x FY26F EPS.

Performance Review and New Order

CBH’s wholly-owned subsidiary, CBH Engineering SB, has successfully secured a contract valued at RM31.4 million. This agreement involves mechanical and electrical (M&E) works for a 132kV consumer landing station dedicated to a proposed data centre in Johor. PublicInvest Research estimates this project will contribute approximately 7% towards the group’s FY25F job replenishment target of RM450 million. The project commenced on September 7, 2025, with an anticipated energisation date of March 10, 2026. This new award is expected to generate an estimated profit of RM4.7 million over its six-month duration, assuming mid-teen margins.

With this latest win, CBH’s cumulative year-to-date contract replenishment has reached RM432 million, achieving 96% of the FY25F target. This boost has increased the group’s outstanding order book by 6.5%, bringing the total to a substantial RM481.4 million.

Future Outlook and Growth Initiatives

The robust outstanding order book of RM481.4 million provides clear earnings visibility for the next one to two years, with the M&E segment anticipated to remain a primary driver of revenue and profitability. PublicInvest Research notes that CBH is actively pursuing opportunities with Tenaga Nasional Bhd (TNB) for 33kV and 132kV projects, aiming to diversify its earnings base and foster more sustainable and recurring revenue streams over the long term. PublicInvest Research has kept its earnings forecasts for CBH Engineering Holding Bhd unchanged, as the newly secured contract aligns with its existing FY25 replenishment assumptions.