Critical Holdings Slips 4.61 Pct Despite RM74.1 Mln Contract Boost

KUALA LUMPUR, Oct 14 (Bernama) -- Critical Holdings Bhd’s shares fell 4.61 per cent in early trading on Wednesday, despite securing an additional RM74.1 million in contract value for cleanroom-related works at Kulim Hi-Tech Park, Kedah.

The additional value brings the contract to RM226.68 million from RM152.59 million following a revision to the scope of work, the company said in an earlier filing with Bursa Malaysia.

At 10.25 am, the stock had fallen nine sen to RM2.73, with 968,500 shares traded.

MBSB Investment Bank Bhd (MBSB IB) expects the additional contract value to contribute a further RM6.7 million to Critical’s financial year 2027 (FY2027) earnings.

The investment bank is also positive on the variation order, saying it further strengthens Critical’s relationship with a key customer.

In June 2026, Critical secured a RM772.5 million engineering, procurement, construction and commissioning (EPCC) contract from the same customer.

Together, the two contracts are worth approximately RM999.2 million.

“While this increases customer concentration risk, we view it as a natural consequence of Critical’s early expansion into large-scale EPCC projects.

“We expect this concentration risk to gradually moderate as Critical builds its EPCC track record, broadens its customer base and secures more sizeable contracts from other clients,” MBSB IB said in a note.

MBSB IB estimates that Critical’s outstanding order book has increased to RM1.06 billion, comprising mainly plantroom projects (74.0 per cent) and cleanroom projects (21.9 per cent).

Data centre and maintenance jobs account for approximately 3.5 per cent and 0.7 per cent, respectively.

MBSB IB maintained its “Buy” recommendation and raised its target price to RM3.54 from RM2.94.

-- BERNAMA