PETALING JAYA: CBH Engineering Holding Bhd’s (CBHB) earnings growth is expected to remain intact, given consistent progress billings from its current unbilled order book of RM554mil, according to TA Research.
The mechanical and electrical (M&E) services group is slated to release its third quarter of financial year 2025 (3Q25) results by the middle of this month.
TA Research, in its results preview, said based on its projections, CBHB’s quarterly profits are expected to range between RM12.4mil and RM14.4mil, bringing its cumulative earnings for the nine-month period of financial year 2025 to RM28.2mil-RM30.2mil.
“This represents 70% to 75% of our full-year forecasts.”
Following a recent meeting with CBHB, the research hosue said the group continues to pursue power infrastructure opportunities within Malaysia’s fast-expanding data centre (DC) sector.
CBHB’s management reiterated that job replenishment visibility remained strong, underpinned by accelerating investments from global DC hyperscale operators to meet surging artificial intelligence or AI-driven data demand.
The sustained investment momentum is supported by favourable government policies, ample land availability and reliable power supply to strengthen the country’s positioning as a regional DC hub, TA Research added.
Notably, global hyperscalers such as Google and Microsoft have been ramping up their local investments.
TA Research noted: “With a robust RM710mil tender book, of which about 60% comprises DC-related projects, CBHB’s management remains confident of meeting our financial year 2025 (FY25) new job win assumption, supported by sustained hyperscaler investment momentum and CBHB’s growing credentials in the DC power infrastructure segment.”
In addition, the management highlighted that CBHB is exploring expansion into Sarawak to participate in non-DC substation engineering, procurement, construction and commissioning projects under Tenaga Nasional Bhd
.
CBHB is also currently evaluating potential joint-venture partnerships to support its entry into the Sarawak market, with the initiative expected to materialise by 2026.
“We view this development positively, as successful execution would enhance CBHB’s order-book replenishment prospects going into 2026-2027, thereby strengthening its near-term earnings visibility,” TA Research noted.
CBHB is expanding its workforce by hiring more senior engineers to support its growing order book and ensure timely projects pipeline execution.
At this juncture, the research house said it made no changes to its earnings forecasts, pending further clarity from the upcoming 3Q25 results.
It has upgraded CBHB to a “buy” call from a “hold” previously while maintaining its target price at 58 sen.
It said: “We continue to favour the stock for its strong footfall in the robust DC power infrastructure construction space and scalable integrated M&E capabilities that position it to capitalise on sustained infrastructure investment momentum.”
In the second quarter ended June 30, 2025, CBHB reported a net profit of RM10.11mil, on revenue of RM59.68mil.
On its outlook, CBHB said, in a filing with Bursa Malaysia following the announcement of its 2Q25 earnings performance, it is cautiously optimistic about its prospects in the power distribution systems industry, supported by its competitive positioning, solid business fundamentals and a favourable general industry outlook.
