PETALING JAYA: MN Holdings Bhd
(MNH) is a key proxy of Malaysia’s rising energy demand, given its track record in executing Tenaga Nasional Bhd’s (TNB) utility infrastructure projects with strategic exposure to both solar and data centres (DCs).
Phillip Capital Research in a report said the group’s earnings growth trajectory will be further enhanced by TNB’s anticipated RM90bil capital expenditure plan over the next five years and also MNH’s move to broaden its portfolio into solar and DCs.
“We expect MNH to record a three-year net profit compounded annual growth rate of 49% over the financial year 2023 (FY23) to FY26, driven by its record high order book of RM448mil and margin expansions from a higher proportion of DC-related jobs,” the brokerage firm noted.
The group’s order book prospect is also growing alongside Malaysia’s increasing energy demand.
This was reflected by its tender book, which surged nearly four-fold from RM207mil in January to RM820mil in June this year, said Phillip Capital Research.
“We are projecting a RM400mil to RM480mil order book replenishment across FY25 to FY26, driven by its ongoing tenders for DC, solar Corporate Green Power Programme and TNB-related opportunities” it added.
The brokerage firm has initiated a coverage on the stock with a “buy” call at a target price of RM1.20 per share.
