PETALING JAYA: Critical Holdings Bhd
’s (CHB) maiden turnkey project marks a significant milestone in the group’s transition from a specialist mechanical, electrical and plumbing contractor to a higher-value turnkey solutions provider.
The RM772.5mil contract for the design and construction of a state-of-the-art industrial facility in Kulim, Kedah, is the company’s largest contract to date, Phillip Capital Research said in a note to clients.
Following the contract win, the stock hit limit-up yesterday as it surged 29.4% or 32 sen to RM1.40 per share.
The project was awarded by a leading US-based multinational semiconductor equipment manufacturer serving the global wafer fabrication industry. Construction started on June 15, 2026 and is scheduled for completion by Dec 15, 2027.
“We believe the award provides strong validation of CHB’s engineering expertise and execution track record, positioning the group to capture larger, higher-value projects going forward. We understand this follows the RM152.6mil cleanroom and utilities contract secured from the same customer in May 2026, lifting cumulative awards to approximately RM925mil.”
CHB’s order book has now risen to a record RM1.06bil, with year-to-date order wins at approximately RM1.2bil and should underpin earnings over financial year 2027 (FY27) and FY28, with profit after tax margins expected to remain broadly in line with the historical 6% to 8% range.
“We raised our FY27 and FY28 earnings per share estimates by 54% and 65% after lifting our annual order replenishment assumption to RM1.2bn (from RM300mil) for FY26.”
The research house also raised its 12-month target price to RM2.55 (from RM1.55), based on an unchanged 18 times FY27 price-to-earnings (PE). It kept the “buy” call on the stock.
“In our view, CHB remains in the early stages of a meaningful PE valuation re-rating, reflecting its successful move into higher-value turnkey projects, record order book and stronger earnings growth prospects.”
It believes the firm will continue to be a beneficiary of ongoing chip capacity expansion in Malaysia.
