PETALING JAYA: Public Investment Bank Research (PublicInvest Research) expects ACE Market-bound Critical Holdings Bhd
(CHB) to do well due to the expansion of its scale of operations as well as its growing workforce.
CHB provides mechanical, electrical and process (MEP) design and engineering solutions which include project management and installation.
It also undertakes maintenance and service support to ensure proper functioning of the existing MEP equipment and systems.
CHB plans to raise RM26mil upon its listing on Dec 18, 2023, with the funds to be used to acquire and set up a new regional office within 24 months. The facility is expected to have 1,500 sq ft for a testing facility for its MEP equipment and systems before actual deployment at project sites.
Funds will also be used to expand the sales and technical team to support the anticipated growth in the business.
CHB’s maintenance and service team is undertaking first-level support and troubleshooting using handheld tools.
In a report, PublicInvest Research said, CHB will look at hiring 51 additional workers within the next 24 months to have technicians that can perform second-level maintenance and service work.
According to the research firm, CHB has strong potential because of its comprehensive MEP engineering solutions, high quality standards, good management and a wide client network.
“CHB’s MEP engineering solutions are vital for facilities with critical functions, providing resilient infrastructure for uninterrupted essential services, ensuring efficient and continuous business and operational functionality,” the research house said.
PublicInvest added CHB will actively seek opportunities for more MEP engineering projects that are on a larger scale moving forward.
As for its end-users, the research firm said CHB serves many industries including semiconductors, pharmaceuticals, solar photovoltaic panel manufacturing as well as data centres, colocation services, telecommunications, hotels and medical facilities.
The research house said it derived a fair value of 43 sen per share for the company, ascribing a 30% discount to its peers’ weighted average price to earnings ratio (PE) multiple of 20.5 times.
“We believe the discount is warranted given its relatively small market capitalisation. The group’s earnings growth trajectory will be reliant on the progression of its customers.”
