CBH Engineering Forecasts Stronger Earnings in 2Q26 with Expanding Tender Pipeline
CBH Engineering anticipates core earnings of RM20-22m in 2Q26, bolstered by a tender pipeline of RM1.3bn primarily in data center projects. The company expects to achieve its RM600m order replenishment target, supported by an improved tender conversion rate of 30-40%.
Theia Market Signal Identification - AI Assisted
CBH Engineering's tender book has grown to RM1.3bn, with expectations for RM400-500m in new order wins over the next few months. Core earnings for 2Q26 are projected at RM20-22m, driven by advanced construction stages of several data center projects, while margins are expected to remain stable at 15-20%.
The company's order replenishment target of RM600m for 2026 is deemed achievable despite a modest YTD total of RM60m. CBH's ongoing diversification into renewable energy is evident with a recent RM28m contract for a battery energy storage system. Key risks include potential delays in contract awards and rising project costs, which could impact earnings momentum.
Comments