PETALING JAYA: Malaysia Marine & Heavy Engineering Bhd (MMHE) will continue to ride on the green energy transition investment cycle, particularly through its growing involvement in carbon capture and storage (CCS) projects.
According to TA Research, in the financial year 2024 (FY24), CCS accounted for RM1.3bil or 37% of MMHE’s revenue, up from RM1.2bil (38%) in FY23 and just RM10.3mil (1%) in FY22.
It expects CCS to remain a key contributor in supporting revenue at elevated levels moving forward while its wind projects provide tailwinds.
MMHE was awarded two significant offshore wind projects under TenneT’s two gigawatts programme in the Netherlands.
In FY24, the wind energy segment remained small, contributing RM23mil or less than 1% of MMHE’s total revenue.
“We expect significant growth in this segment as these projects progress, with completion currently at 11% as of September 2025,” the research house wrote in a report.
Following MMHE’s third quarter of FY25 financial results release, its revenue fell 43.8% year-on-year (y-o-y) to RM509.9mil due to a 50.8% y-o-y contraction in its heavy engineering segment as several projects neared completion. This was offset by a 9% y-o-y increase in the marine segment, supported by stronger vessel conversion and repair activities.
TA Research maintained a “buy” call on MMHE with a higher target price (TP) of 49 sen a share (from 45 sen). BIMB Securities also has a “buy” call on the stock with a TP of 94 sen a share.
