KUALA LUMPUR (Aug 20): CBH Engineering Holding Bhd (KL:CBHB) climbed to new record high in Thursday trading as investors cheered strong results at the engineering services firm.

Shares of CBH Engineering rose as much as 16.5% or 13 sen to 92 sen, surpassing Bloomberg's consensus target price. All five research houses covering CBH Engineering rated the stock a “buy”, with target prices ranging from 67 sen to RM1.11.

Phillip Capital, which now has the highest target price, said second-half earnings could be even stronger “supported by an improving contract flow and a robust replenishment pipeline.”

The stock ended the day at 84.5 sen, valuing the company at about RM1.59 billion. CBH Engineering was also among the most actively traded stocks on Bursa Malaysia, with more than 80 million shares changing hands.

CBH Engineering, which provides mechanical and electrical engineering services, has nearly doubled its stock price this year riding on a wave of contracts related to new data centres in Malaysia to cater to demand for advanced computing and artificial intelligence applications.

Public Investment Bank said it remains on CBH Engineering’s growth prospects, underpinned by healthy tender pipeline and structural data centre sector tailwinds, while current jobs on hand worth RM744 million could provide earnings over the next two years.

The house raised its target price to 91 sen based on forward earnings multiple of 18 times versus 17 times previously, noting “consistent job wins that leads to improving earnings trajectory”.

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