CBH Engineering Holding Berhad IPO's Analysis

CBH Engineering Holding Berhad

CBH Engineering Holding Berhad is a leading provider of electrical engineering services specializing in electricity supply distribution systems. The company undertakes a comprehensive range of activities including the design, supply, installation, testing, commissioning, and maintenance of high voltage (HV), medium voltage (MV), low voltage (LV), and extra-low voltage (ELV) electrical systems. In addition to its core electrical engineering services, CBH also offers mechanical engineering works for building systems, which encompass air conditioning and mechanical ventilation (ACMV) systems, fire protection systems, plumbing and sanitary systems, and renewable energy systems. The company’s projects often integrate multiple mechanical and electrical (M&E) systems, such as specialized in machinery and equipment tailored for customers need. CBH was incorporated in 2023 and headquartered in Malaysia.

IPO Details
Market: ACE
Principal Adviser: Mercury Securities Sdn Bhd
Issuing House: Tricor Investor & Issuing House (TIIH)
Shariah Status: SC (Yes)
Listing Price: 0.28
PE Ratio: 10.2-15.9
    PE (FYE): 15.91
    PE (FPE Annualised): 11.45
    PE (Hybrid): 10.23
MITI allocation?: Yes
Closing Date: 02-Jan-2025
Balloting Date: 06-Jan-2025
Listing Date: 16-Jan-2025
MITI Payment Date: 30-Dec-2024
Oversubscription rate: 34.21x
Average Analysts FV :
Mplus (0.525), Public Invest (0.41), TA (0.48), RHB (0.43)
iSaham IPO Score :
Market Cap: 526.65 M
Number of Shares: 1,880.90 M
IPO Allocations No. of Shares %
Malaysian Public 94.05 M 5.0%
Bumiputera shareholders approved by MITI 235.11 M 12.5%
Eligible Directors and employees 28.415 M 1.51%
Private placement to selected investors and others 128.518 M 6.83%
Total Allocations 486.09 M 25.84%

Offer for Sales of 188.09 M existing shares representing 10.0% enlarged shares.

Public Issue of 298.00 M new shares representing 15.84% enlarged shares.

Median Sectors PE: N/A
Median Peers PE:
Utilisation of Proceeds
Purpose Amount (RM'000) %
Expansion Procurement of equipment and components for M&E engineering works 38,504 46.15
Expansion Bank guarantees for future projects 17,300 20.73
Expansion Payment to subcontractors for future projects 18,480 22.15
Expansion Recruitment of engineers and other personnel 3,456 4.12
Listing expenses Estimated listing expenses 5,700 6.83
Total 83,440 100
Analyst Highlights
Date Analyst Highlights
24-Dec-2025
Apex
  • CBHB secured a RM130.0m contract for a 275kV Consumer Landing Station extension, increasing its outstanding order book to RM662.3m (2.4x FY24 revenue).
  • Phase 2 completion is projected with a 20% gross profit margin, yielding c.RM24.5m in gross profit over 11 months, after stripping out SST.
  • The contract win exceeded order book replenishment assumptions, leading to a 2-6% increase in earnings forecasts for FY26F-FY27F.
  • Upgrade to BUY rating with a higher target price of RM0.50 (from RM0.47), based on 18x FY26F EPS of 2.8 sen, due to upward earnings revisions and recent share price weakness.
24-Dec-2025
Public Invest
  • CBH Engineering SB accepted two Letters of Award (LOA) from Company A for a RM130m data centre (DC) job.
  • The group's outstanding orderbook increased to RM662.3m, with over 93% attributable to DC-related projects.
24-Dec-2025
TA
  • Secured RM130mn in new contracts for a Johor DC Substation, contributing to FY25 job wins.
  • FY25 YTD new job wins reached RM601.6mn, exceeding the RM500mn replenishment target.
  • Total order book is committed to grow to RM681.2mn, ensuring strong revenue coverage (2.9x FY25 revenue).
  • New contracts are estimated to contribute RM19.5mn to earnings with a 15% net margin.
  • Robust tender book of RM600mn and data centre demand to drive strong FY26 job wins.
20-Nov-2025
Apex
  • 3QFY25 CNP was RM5.9m, bringing 9MFY25 CNP to RM21.6m, which was below expectations (56% of forecast, 53% of consensus) due to slower revenue recognition.
  • Earnings for FY25-FY27F were revised downward by 20.7-28.2% due to revenue recognition adjustments, with existing order book spilling into FY26F-FY27F.
  • FY26F order book replenishment assumption was lowered to RM204m (from RM414m) as resources are prioritized for existing large contracts.
20-Nov-2025
Public Invest
  • 3QFY25 core net profit increased 43.8% YoY to RM12.5m, driven by the reversal of expected credit loss provisions on trade receivables and contract assets.
  • Earnings forecasts are maintained, anticipating stronger orderbook recognition in the upcoming quarters.
  • Positive outlook on growth prospects, supported by a healthy tender pipeline and favorable sector tailwinds from Malaysia's DC ecosystem and East Malaysia development.
20-Nov-2025
TA
  • CBHB's 9MFY25 core earnings missed forecasts due to slower order book burn rate, as newly secured orders are in early execution phases.
  • Revenue declined YoY (32.0%) and QoQ (47.2%) due to slow burn, though core net margin improved to 18.3% from 16.7%.
  • FY25 order book burn rate was revised down, but FY26-27 burn rate assumptions were raised, leading to a cut in FY25 core earnings but higher forecasts for FY26-27.
  • Total outstanding order book of RM530.5mn (2.3x FY25 revenue forecast) provides clear earnings visibility for the next 3 years.
  • Secured RM471.6mn in new orders YTD (94.3% of FY25F target), with a healthy tender book of RM710mn, indicating strong replenishment prospects.
  • Sustained demand for power infrastructure solutions, especially for Malaysia's data centre ecosystem, supports future contract conversions and order book growth.
05-Nov-2025
TA
  • Anticipated 3QFY25 earnings of RM12.4mn-RM14.4mn, contributing to 9MFY25 earnings of RM28.2mn-RM30.2mn, driven by consistent progress billings from the current RM554mn unbilled order book.
  • Strong job replenishment visibility, especially in the fast-expanding data centre (DC) sector, supported by global hyperscale operator investments and favorable government policies.
  • Exploration of expansion into Sarawak for non-DC substation EPCC projects under TNB's RM42.8bn investment plan, with potential joint venture partnerships expected by CY26, enhancing future order book prospects.
21-Oct-2025
Public Invest
  • CBH is recruiting more senior professionals to support capacity expansion and improve project execution.
  • DC remains the key growth driver, with RM500m in new contracts year-to-date and a tender book of RM710m.
17-Oct-2025
Apex
  • CBHB secured RM20.7m contract for design and installation of high-voltage early works.
  • Project expected to generate c.RM3.9m gross profit over 11 months.
29-Sep-2025
TA
19-Sep-2025
Public Invest
  • Forecasting 3-year net profit CAGR of 7.5%, reaching RM51.9m in FY27F.
  • Robust unbilled order book of RM450m provides earnings visibility.
  • Initiating with an Outperform call due to strong growth trajectory.
25-Aug-2025
Apex Securities
  • Secured RM52.8m contract for a 132kV consumer landing station, boosting order book to RM501.9m.
  • Projected gross profit of c.RM13.2m over 20 months, with RM2.2m in FY25F and RM11.0m in FY26F.
  • FY25F replenishment assumption increased to RM560m, exceeding the initial RM405m, projections for FY26F and FY27F maintained.
22-Aug-2025
Apex Securities
  • Outstanding order book of RM449.1m provides visibility over the next two financial years.
  • Maintain BUY recommendation with an unchanged target price of RM0.41, based on 15x FY26F EPS of 2.8sen.
21-Aug-2025
Apex Securities
  • Outlook remains positive, anchored by Johor's expanding pipeline of Tier-4 DC investments.
  • Maintained BUY recommendation with an unchanged target price of RM0.41.
06-Aug-2025
Apex Securities
  • CBHB secured RM194.7m contract for EPCC of a 275kV consumer substation.
  • Contract lifts unbilled order book to RM430m, 1.6x FY24 revenue.
  • Projected to generate c.RM48.7m across the 17-month contract with 25% GP margin.
18-Jul-2025
Apex Securities
  • CBHB secured a RM172m contract for a 275kV/13.8kV consumer substation.
  • Maintain BUY with unchanged target price of RM0.38.
Utilisation of Proceeds
Business Segments
Major Customers
Profit After Tax (PAT) by Financial Year Ended
SWOT Analysis
No Available Pro Insight yet
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