PETALING JAYA : MN Holdings Bhd (MNH) is poised for strong near-term performance, driven by a robust project pipeline and its deepening involvement in Malaysia’s rapidly expanding data centre (DC) infrastructure sector.
According to Hong Leong Investment Bank (HLIB) Research, the company’s outstanding order book stands at RM1.13 billion, with nearly 90% attributed to substation engineering contracts. MNH is actively bidding for a further RM1.85 billion in projects, predominantly in the DC and Tenaga Nasional Bhd (TNB)-related infrastructure space.
MNH remains selective in its tender participation, prioritising high-margin projects and those which enhance its operational track record. HLIB noted that job availability remains strong, although competition is constrained by a limited pool of qualified contractors, particularly with growing demand from both TNB and the private sector.
The group is also targeting interconnection facility works under the upcoming fifth large-scale solar programme (LSS5). With LSS5, LSS5+ and LSS6 collectively expected to unlock approximately 6 GW of new power infrastructure opportunities in the coming years, capitalised mechanical and electrical players such as MNH are well-positioned to capture a significant share.
In a notable development, MNH recently secured a RM39.5 million contract from an unnamed client, referred to as Customer A, for a consumer landing station project in Johor. HLIB Research sees this win as a testament to the group’s execution capabilities, with the potential to secure an additional RM130 million in packages at the same location.
As a result, HLIB revised its FY2026 and FY2027 earnings forecasts upwards by 6.8% and 7.5% respectively, while reiterating a “buy” recommendation and raising its target price to RM1.88.
Maybank Investment Bank Research (Maybank IB) has also maintained its “buy” call, with a target price of RM1.69, citing the Johor contract with Customer A as a significant growth catalyst. While the contract was within the research house’s expectations, it reinforced MNH’s strengthening position in DC infrastructure, now a key component of both its confirmed and prospective contracts.
Maybank IB projects sustained demand in the DC space over the next three years, anticipating RM500 million in annual job wins between FY2025 and FY2027.
Further reinforcing investor confidence, Phillip Capital Research highlighted a recent RM40 million substation extension project, which has lifted MNH’s total order book to RM1.1 billion — equivalent to 4.5 times its FY2024 revenue. The project is expected to contribute RM4 million to FY2026 earnings.
Phillip Capital also pointed to a prospective RM250 million pipeline from Customer A, noting MNH’s strategic position with first right of refusal. It maintained a “buy” rating with a target price of RM1.72, citing the group’s strong client retention and advantageous exposure to Malaysia’s fast-growing data centre segment.
-The Star
