CBH's FY26 orderbook target raised to RM800mil
KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) has raised CBH Engineering Holding Bhd's financial year 2026 (FY26) orderbook replenishment assumption to RM800 million from RM600 million, supported by its stronger-than-expected data centre (DC) pipeline.
PublicInvest, a Malaysian investment bank, has increased its forecast for CBH Engineering Holding Bhd's orderbook replenishment for the fiscal year 2026 (FY26) to RM800 million, up from their previous estimate of RM600 million. This boost in the target is attributed to the strong performance of the company's data center pipeline.
As of now, CBH's year-to-date orderbook replenishment stands at RM482.7 million, following their recent win of an RM88.1 million contract for a data center project in Selangor. PublicInvest has also raised their earnings forecasts for the FY27-FY28 period by an average of 17 percent, targeting a price of RM1.16 based on a 20 times FY27 earnings per share projection.
The firm maintains an "Outperform" rating for CBH Engineering Sdn Bhd, a wholly-owned subsidiary of PublicInvest.
A notable project secured by CBH is the RM88.1 million design-and-build contract for a 275kV consumer landing station, which will support a data center in Selangor. This project includes design, supply, installation, testing, and commissioning, with construction set to begin on August 13, 2026, and completion expected by May 12, 2027.
The recently won contract is estimated to contribute RM13.2 million over its duration, assuming a modest profit margin. As of now, CBH's total orderbook stands at RM891.7 million, with over 90 percent of projects being data center-related. The company's tenderbook is also robust, with RM1 billion in potential work, 80 percent of which is in the data center sector, providing a strong outlook for future replenishment.
PublicInvest remains optimistic about CBH's growth prospects, driven by structural tailwinds in the data center sector and increasing spending on artificial intelligence (AI) by major players such as Amazon, Microsoft, Google, and Meta. These tech giants are collectively committing over US$600 billion in 2026 to expand their data center infrastructure in Malaysia.
Despite current constraints in grid delivery capacity, PublicInvest believes that CBH's electrical infrastructure expertise could prove advantageous, especially as the company expands into battery energy storage systems (BESS) and other related segments, diversifying its revenue streams over time.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
