PETALING JAYA: MN Holdings Bhd
can expect a RM1.2mil boost to its profit after tax (PAT) over financial year 2026 (FY26) and FY27 after its recent contract win.
This is based on the assumption of a 7% PAT margin for Tenaga Nasional Bhd (TNB)-related projects.
MN Holdings, via a consortium, secured a TNB contract to upgrade the 132kV submarine power cable system between Kuala Perlis and Langkawi, adding an effective RM17.7mil to its order book.
Phillip Capital Research in a report said the win reinforced its view that MN Holdings is well positioned as a key beneficiary of TNB’s higher allowable capital expenditure of RM42.8bil under Regulatory Period 4, from 2025 to 2027.
TNB’s projects currently account for 44% of MN Holdings’ total order book.
It said the company’s outstanding order book rose to RM881mil after the recent win, translating into a 3.4 times historical FY24 revenue cover, providing strong earnings visibility through FY27.
This contract marks MN Holdings’ second TNB contract win in FY26, bringing year-to-date (y-t-d) new wins to 7.7% of Phillip Capital Research’s RM600mil order replenishment assumption for FY26.
Maybank Investment Bank Research (Maybank IB) said the y-t-d new wins now stand at about RM72mil, representing 14% of its FY26 replenishment target of RM500mil. Looking forward, the research house expects the company’s order replenishment momentum to remain robust, supported by a RM1bil tender pipeline spanning TNB (34%), data centres (15%), water and sewerage (12%), solar (11%), and others (28%).
The group is targeting to expand its tender book to RM2bil by the first half of FY26.
Both Phillip Capital Research and Maybank IB retained their earnings forecast for MN Holdings, as the contract win aligns with their existing assumptions. Both also reiterated their “buy” calls on the stock.
