Surprising move from chicken hotpot to data centres

The shares of Nasdaq-listed CCH Holdings Ltd have plunged 94% over the past 12 months. (Facebook pic)

PETALING JAYA: Nasdaq-listed CCH Holdings Ltd’s (CCHH) move to diversify from chicken hotpot restaurants to data centre support services has been given the thumbs down by investors in the US.

The Penang-based hotpot restaurant operator’s shares plunged almost 40% after announcing on Wednesday it clinched a US$50 million (RM203.97 million) deal to provide maintenance and support services for data centres in Malaysia.

The low-key company said the deal marks the group’s entry into the fast-growing technology infrastructure sector as part of its “broader diversification strategy”.

Its shares tumbled as much as 37.14% to 22 US cents on the tech-heavy Nasdaq yesterday (US time) before closing 25.7% lower at 26 US cents, valuing the group at US$10.38 million. It has been a horrible year for the company as its shares have plunged 94% over the past 12 months.

The sharp drop in its share price yesterday may reflect investors’ concern over its diversification into data centre services. The group is largely known for operating the “Chicken Claypot House” and other restaurant franchises.

There was also a lack of details on the deal, with CCHH saying it is a three-year sales and service agreement with “several clients”, whose identities were not revealed.

“The identity of the counterparties remains confidential pursuant to a binding non-disclosure agreement between the parties,” it explained.

The Bukit Mertajam-headquartered group said the agreement would strengthen its position in pursuing opportunities in technology infrastructure across Malaysia, Southeast Asia and other foreign markets.

“We are pleased to enter into this three-year strategic agreement, which represents an important step in CCHH’s evolution as a diversified Nasdaq-listed company,” said CEO Goh Kok E in a statement.

He added CCHH will continue strengthening its restaurant operations while expanding into data centre support services and broader artificial intelligence (AI) infrastructure opportunities across Southeast Asia and beyond.

In another exchange filing yesterday, the group announced that Kok E together with his investors intend to acquire CCHH common shares at not less than US$1 per share, with an aggregate investment amount expected to range from US$10 million to US$30 million (RM40.8 million to RM122.4 million).

“The proposed purchases are expected to be made using their personal funds and are intended to further align management’s interests with those of long-term shareholders while demonstrating confidence in the company’s future development strategy,” the group said.

This implies that Kok E and his fellow investors will be buying the shares at a premium of at least 284.6% (at US$1) to the current price of 26 US cents.

The company’s largest shareholder with a 44.28% stake is Kok E’s brother, Goh Kook Fong, the group’s co-founder and former chairman. Asia File Corp Bhd executive chairman Lim Soon Huat holds a 25.42% stake in CCHH.

The company posted a net loss of RM2.68 million for the year ended Dec 31, 2025 from a net profit of RM913,400 a year ago while revenue rose 7.5% to RM9.59 million.