PETALING JAYA: MN Holdings Bhd
’s (MNH) earnings are expected to regain an upward trajectory in financial year (FY27) as new Customer A jobs begin rolling out by the next two quarters.
Hong Leong Investment Bank (HLIB) Research in a report said with three data centre (DC) projects (Customer A, D, E) slated for completion by early 2026, MNH is expected to experience a brief earnings air pocket in the fourth quarter of financial year 2026 (4Q26) following a run of strong quarters.
This transition phase is broadly anticipated by the market, and HLIB Research believes that the impact on investor positioning should be minimal.
It maintained a “buy” call on the stock with an unchanged target price of RM2.23 a share. The research house also favours the group for its strong exposure to high-growth sectors such as solar and DC.
The group is well-positioned as a proxy for Malaysia’s rising power demand and stands to benefit from Tenaga Nasional Bhd’s (TNB) capital expenditure upcycle.
As of November 2025, the group carried an order book of RM864mil, driven largely by DC and TNB works (79%).
The tender book came in at RM1.1bil, and management expects the number to approach RM2bil in the coming quarters.
It believes that earnings should re-accelerate as Customer A’s next wave of contracts comes through.
With Plot 4’s extension nearing completion and Kempas progressing well, management flagged that Customer A is preparing to rollout a further Plot 4 extension along with Cable Landing Stations (CLS) packages for Plot 5 and Kempas Phase 2.
The contract awards from LSS5 (fifth large-scale solar programme) are expected to flow through gradually in the first half of financial year 2025, with LSS5+ slated to come in from 4Q26 onwards.
Beyond Johor, Customer A’s plan to establish a new DC in Klang Valley represents another sizeable opportunity.
HLIB Research estimated that this site will require two units of 275 kilovolts CLS and estimates the potential contract value at more than RM200mil.
It added that outside of Customer A, other DC clients, namely Customer D and E, remain in expansion mode, albeit at a more measured pace.
