KUALA LUMPUR (Sept 8): Shares of CBH Engineering Holding Bhd (KL:CBHB) rose to a fresh high since its listing in January last year, after the group secured RM147.66 million worth of data centre-linked jobs in Johor and Selangor in less than two weeks.
The counter rose as high as 5.26% to hit the RM1 mark on Tuesday. It pared gains to close at 95.5 sen — still up half a sen or 0.53% — with some 30.45 million shares changing hands. At its closing price, CBH Engineering is valued at RM1.8 billion.
On Monday, CBHB via wholly owned subsidiary CBH Engineering Sdn Bhd had secured a RM88.05 million contract to design and build a 275kV consumer landing station serving a data centre in Selangor.
Ten days before that, CBH Engineering was awarded a RM59.61 million work order for electrical infrastructure works at a data centre in Johor.
The wins lifted its outstanding order book to RM1.16 billion from six contracts secured in FY2026, bringing its total year-to-date order wins to RM477.2 million.
Research houses are bullish on CBHB's prospects due to its run of contract wins.
Apex Securities, in a note to clients, estimated that the Selangor contract could generate about RM20.7 million in gross profit over its nine-month duration, based on an assumed gross profit margin of 23.5%. Of this, RM10.7 million is expected to be recognised in FY2026 and RM10 million in FY2027.
The research house expects data centre-related job momentum to remain strong, backed by continued investment from hyperscalers in data centre and artificial intelligence (AI) infrastructure.
CBHB currently has about RM1 billion worth of substation projects in its FY2026 tender book. Assuming a 60% win rate, Apex Securities expects this to translate into about RM600 million in new orders.
“Given year-to-date order wins have reached 80% of our assumption, and with four months left in the year, should the contracts continue at its current pace, we see scope for an upward revision to our FY2026 and FY2027 replenishment assumptions and earnings forecasts,” it added.
Meanwhile, Philip Capital said CBHB could secure additional packages as subsequent phases of the Selangor project are rolled out.
It also highlighted the group’s track record in executing hyperscaler projects and its above-industry margin profile.
Key downside risks include slower-than-expected contract awards, project execution risks and rising project costs.
CBHB shares have been on a steady uptrend since its listing in January last year. The stock has surged over 94% since the start of 2026 and is now trading more than three times its IPO price of 28 sen. Overall, the counter has five "buy" calls with a 12-month target price of RM1.11, implying a return potential of 16.23%, Bloomberg data showed.