CBH Engineering Sees Strong Data Centre-Driven Growth

CBH Engineering’s strong data centre pipeline, sizeable tender book and improving earnings outlook support higher forecasts, sustained growth prospects and an unchanged Outperform rating with a higher target price.

CBH Engineering Data Centre Momentum

CBH Engineering remains well positioned for sustained growth as robust data centre investment activity in Malaysia continues to support its earnings outlook. Following a recent management meeting, the company indicated that its data centre project pipeline remains healthy, providing strong earnings visibility despite cost pressures arising from the ongoing Middle East conflict.

Management noted that equipment price inflation has been mitigated by locking in prices once contracts are secured while incorporating higher costs into new tenders.

CBH currently has a RM1.3 billion tender book, with around 80% linked to data centre projects, supporting its FY26 job win target of RM600 million, of which RM60 million has already been secured year-to-date.

The company also expects most of its RM600 million outstanding order book to be recognised during FY26. Reflecting the improving outlook, earnings forecasts for FY26 to FY28 have been raised, while the Outperform rating is maintained with a higher target price of RM0.84.