CBH Engineering Secures RM172mil Contract for Data Centre Substation Project

CBH Engineering Holding Bhd's subsidiary, CBH Engineering Sdn Bhd, has secured a RM172mil contract to design and build an electrical supply system for a 275kV/13.8kV consumer substation for a proposed data centre in Selangor. The scope of works includes supply, erection, installation, testing, and commissioning of all substation equipment and associated civil works. The contract period is 14 months from July 11, 2025.

KUALA LUMPUR (July 17): CBH Engineering Holding Bhd (KL:CBHB) has secured a contract worth RM172 million to build a substation’s electrical supply system at a proposed data centre in Selangor. The award from an undisclosed client marks CBH Engineering’s first major contract win this year, sending its share price up nearly 13%. The stock climbed to as high as 30.5 sen, its highest since May 9, as trading resumed following the announcement during midday break [1].

The job will run for 14 months beginning July 11 and is scheduled for completion by September 10, 2026, the company said in an exchange filing. The scope of works comprises supplying, erecting, installing, testing, and commissioning all substation equipment and associated civil works for the electrical supply system [1].

CBH Engineering, listed in January this year with an initial public offering price of 28 sen per share, provides mechanical and engineering services, including maintenance of systems such as air conditioning, fire protection, and plumbing. The company has a market capitalisation of RM545.5 million at the last price of 30 sen after more than 15 million shares changed hands on Thursday [1].

CBH Engineering’s subsidiary, CBH Engineering Sdn Bhd, accepted a Letter of Award valued at approximately RM172 million. The contract is for the design and build of an electrical supply system for a 275kV/13.8kV consumer substation intended for a proposed data center located in Selangor Darul Ehsan. The award was granted by an undisclosed Malaysian entity, referred to as “Company A,” which is principally involved in holding company activities [2].

The contract period is set for 14 months, commencing on July 11, 2025, with an estimated completion date of September 10, 2026. The company will be responsible for the comprehensive scope of works, including the design, supply, installation, testing, and commissioning of the electrical supply system for the consumer substation [2].

CBHB noted a nominated subcontract clause within the agreement. Upon the formal appointment of a general contractor by the Employer, CBH Engineering’s rights, obligations, liabilities, and responsibilities under the contract will be novated or transferred to the general contractor. Once this novation occurs, the general contractor will assume all roles as if they were an original party, fully discharging the Employer from their obligations [2].

From a financial perspective, the contract is not expected to have any immediate effect on CBHB’s issued share capital or the shareholdings of its substantial shareholders. However, the company anticipates that the project will contribute positively to its future earnings, earnings per share, net assets, and gearing throughout the duration of the contract [2].

References:
[1] https://theedgemalaysia.com/node/762970
[2] https://www.businesstoday.com.my/2025/07/17/cbh-engineering-secures-rm172-million-contract-for-data-centre-substation/