PETALING JAYA: The Malaysian mechanical and electrical (M&E) engineering services sector continues to show promising growth, driven by increasing foreign and domestic investments that lead to a rise in commercial and industrial properties.
Further, the long-term development of key end-user industries, particularly data centres, where CBH Engineering Holding Bhd holds a proven track record, places the group in a strategic position to benefit from these market dynamics.
CBH aims to strengthen its internal capabilities by recruiting more skilled professionals to meet rising demand. This will enhance its operational efficiency and ensure it continues delivering innovative and high-quality engineering solutions. Simultaneously, CBH is focused on strengthening its financial resources to support the working capital required for larger and more complex M&E engineering projects.
These efforts will allow CBH to solidify its reputation as a trusted and leading service provider in the M&E engineering sector.
Launching its prospectus in conjunction with its upcoming initial public offering (IPO) in Kuala Lumpur on Friday, CBH managing director Cheah Boon Hwa said the company’s upcoming listing on the ACE Market of Bursa Malaysia represents a transformative step.
It will enable the company to strengthen operations, expand its team, and seize new opportunities within the growing M&E engineering services industry.
CBH provides electrical and M&E services, including designing, installing, testing, and maintaining electrical systems across various voltage levels and mechanical systems like air conditioning and mechanical ventilation, fire protection, plumbing, and renewable energy.
The group has a diverse portfolio of projects, including substations, commercial properties such as data centres, shopping malls, hotels, office towers, industrial properties such as factories and warehouses, and highrise residential properties.
Showcasing strong financial growth from the financial years ended Dec 31, 2021 (FY21) to FY23, CBH achieved a two-year net profit compound aggregate growth rate of 203.8%, rising from RM3.6 million to RM33 million. This was underpinned by revenue growth from RM67.6 million to RM208.0 million over the same period.
For the eight-month period ended Aug 31, 2024 (FY24), CBH reported a net profit of RM30.7 million and revenue of RM178.2 million, reflecting increases of 150.9% and 126.3%, respectively, against FY23.
Looking ahead, CBH’s optimism is grounded in its unbilled order book of RM203.7 million and a tender book valued at RM559.7 million as of Nov 25, 2024.
The bulk of the RM83.4 million to be raised through the IPO will be allocated for business expansion purposes. Specifically, RM38.5 million (46.2%) will be earmarked for the procurement of equipment and components for future
projects, while RM17.3 million (20.7%) will be allocated to bank guarantees for future projects.
Additionally, RM18.5 million (22.2%) will be used towards the payment to subcontractors for future projects, while RM3.5 million (4.1%) will be set aside towards the recruitment of engineers and other personnel. The remaining RM5.7 million (6.8%), will be used to defray listing expenses.
With an enlarged issued share capital of 1,880.9 million shares and an IPO price of 28 sen per share, CBH will have a market capitalisation of RM526.7 million upon listing.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for CBH’s IPO.
