KUALA LUMPUR (Feb 25): CBH Engineering Holding Bhd (KL:CBHB) rose on Wednesday to its highest in a month as investors cheered strong earnings and analysts raised their forecasts for 2026.
Net profit at the mechanical and electrical engineering firm for the year ended Dec 31, 2025 (FY2025) was nearly 30% above the consensus forecast thanks to better-than-expected margins, and analysts expect CBH Engineering to win more data centre-related contracts this year.
“We see a high likelihood” of CBH Engineering winning some of the jobs worth RM730 million the company is bidding for in the coming months, TA Securities said in a note, noting that “several of the tenders are already at the advantage stage of finalisation”.
This year, the company will likely add RM600 million worth of new contracts to its order book, according to the research house’s forecasts.
CBH Engineering rose as much as 3.5 sen or over 6% to 59 sen, its highest since Jan 23. The stock closed at 58 sen after more than 11 million shares changed hands. At the last price, the company is valued at RM1.1 billion.
While off its record highs made last month, the stock is nevertheless up nearly 29% since the start of 2026, riding on a wave of contracts related to new data centres in Malaysia to cater to demand for advanced computing and artificial intelligence applications.
All three analysts covering the stock have ‘buy’ calls. Post results, the average target price has also risen to 67 sen, according to Bloomberg.
“We remain positive on CBH’s growth prospects, underpinned by its healthy tender pipeline and favourable sector tailwind,” said Public Investment Bank, noting that jobs on hand worth RM592 million would provide earnings over the next two years for the company.
CBH Engineering is “strategically positioned” to benefit from ongoing expansion of data centre infrastructure with major hyperscalers such as Google and Microsoft committing to Malaysia for long-term, the research house noted.
On Tuesday, the company reported a net profit of RM19.66 million for the final quarter of 2025, bringing total earnings for the year to RM48.04 million. Its profit before tax margin expanded some 600 basis points, or six percentage points, during the year.