PETALING JAYA: Muhibbah Engineering (M) Bhd
appears to have carved out a niche in the noise barrier business, following its latest RM120mil contract win for the Penang light rail transit (LRT) Mutiara Line, bringing its total order book to RM1.6bil, says CGS International (CGSI) Research.
Similar secured contracts include for other rail projects such as the mass rapid transit or MRT and LRT 3, and toll highway projects, namely, the Sungai Besi-Ulu Kelang Elevated Expressway.
In a note to clients, CGSI Research said the latest contract win marked Muhibbah’s first construction win for financial year 2026 (FY26), bringing its construction order book to RM983mil (RM1.6bil including cranes).
“While it does not provide contract win guidance, the win is 30% of our FY26 construction new win estimate of RM400mil.
“The gross profit margins of the contract should be in the region of 8%-9%,” the brokerage added.
This is also an important win for Muhibbah, building on the RM700mil-RM850mil engineering, procurement, construction and commissioning contract from Petroliam Nasional Bhd or PETRONAS in December 2025, a first major win since November 2023.
“In our view, Muhibbah’s construction business is now on a stronger footing and should help offset the expected decline in profits for its Cambodia airport division,” it noted.
