Kuala Lumpur, 19 September 2025 — Public Investment Bank (PublicInvest) has launched coverage on CBH Engineering Holding Bhd, giving the mechanical & electrical (M&E) engineering group an Outperform rating and setting a fair-value target of RM0.41 per share. The rating is based on its FY2025 forecast and visible order book.
PublicInvest projects that CBH Engineering will achieve a net profit of about RM42.7 million in FY2025, reflecting a compound annual growth rate (CAGR) of 13.7% over two years. Key to this forecast is the company’s unbilled order book of RM203.7 million, which provides revenue visibility over the coming 12-24 months.
Key Strengths & Growth Drivers
CBH Engineering is being credited for its comprehensive M&E services, including in-house design capabilities, strong contract book, and experienced management. The firm handles high, medium, low, and extra-low voltage systems; mechanical ventilation and air-conditioning; and other services like plumbing, fire protection and even renewable energy system works.
Additional drivers highlighted by PublicInvest include:
- Expanding demand in Malaysia’s property and construction sectors—residential, commercial, industrial.
- Growth in end-user industries such as data centres / semiconductor / electronics manufacturing.
- Strong tender pipeline: as of 25 November 2024, CBH had submitted 22 tenders totaling approximately RM559.7 million.
Fair Value & Risks
The valuation is derived using an 18-times price-to-earnings (P/E) multiple based on the projected earnings per share (EPS) of 2.3 sen for FY2025. PublicInvest believes this is appropriate given CBH’s low debt profile, ready projects, and favorable market conditions.
Still, some risks remain:
- Delays in tender awards or contract execution might affect earnings.
- Cost overruns and standard M&E project risks.
- Competition and dependency on subcontractors or materials.
- Exposure to fluctuations in demand from foreign investors / global electronics supply chain.
IPO & Capital Position
CBH Engineering went public with an IPO aiming to raise RM83.4 million through 298 million new shares, priced at RM0.28 per share. Majority of the proceeds are intended for working capital—to expand tendering capability, purchase equipment, and strengthen its financial position to win larger and more complex projects.
As of its IPO, the firm held a net cash position of about RM42.9 million and had zero borrowings, providing it ability to navigate downturns more resiliently.
