PETALING JAYA: MN Holdings Bhd
’s RM122.7mil contract to undertake power related works for a data centre (DC) raises its year-to-date wins for financial year 2026 (FY26) to RM270mil.
The client was an undisclosed US-based engineering consultant and the latest contract had strengthened MN Holdings’ presence in the DC power infrastructure segment and lifted its outstanding order book to RM918mil.
Maybank Investment Bank Research (Maybank IB) said MN Holdings is near the research house’s RM500mil replenishment works target in FY26 and should contribute to the company’s bottom line soon.
“Assuming a 7% profit after tax margin (PAT), we expect this contract to contribute around RM8.6mil across the period with earnings largely to be recognised in FY27, making up 11% of our forecasts,” the research house stated in a report.
The projects commenced on Jan 13, 2026 and are targeted for completion by June 27 this year. Hong Leong Investment Bank (HLIB) Research noted in a report the DC project is for a western-based hyperscaler.
Like other research houses, Maybank IB added that MN Holdings order book could rise, underpinned by its RM2bil tender book, primarily across Tenaga Nasional Bhd (TNB) related projects (40%), DC (40%), with the remaining 20% from other sectors, including water, sewerage, gas pipeline and solar.
DC projects accounted for 42% of MN Holdings total order book.
HLIB Research added in the case of TNB, it estimated annual investments of RM3bil to RM3.5bil from its base capital expenditure (capex) into grid infrastructure, translating into a RM6.7bil to RM7.8bil job opportunities within the transmission substation segment for mechanical and electrical players like MN Holdings.
According to Phillip Capital Research, the latest contract represents its successful penetration into a new DC customer and the company’s tender pipeline remains robust, supported by participation in new customer tenders and capacity expansion from existing DC customers.
It has assumed a 10% PAT margin for the DC-related project and forecasts the contract to contribute RM12mil to PAT of MN Holdings.
HLIB Research pointed out that upcoming Large Scale Solar Five (LSS5) and LSS5+ programmes are expected to drive further demand for power infrastructure, opening additional avenues for contract wins.
“With a strong track record in serving the sectors, MN Holdings is well-positioned to capitalise on these emerging opportunities,” it opined in a report on the company.
Research houses had maintained their “buy” calls on MN Holdings with HLIB Research having a target price (TP) of RM2.23 a share for the company while Phillip Capital Research had a TP of RM2.20 on the stock.
Maybank IB’s TP on MN Holdings is RM2.27 a share, based on 23 times FY26 earning per share.
HLIB Research noted that MN Holdings is well-positioned as a proxy for Malaysia’s rising power demand and stands to benefit from TNB’s capex upcycle.
