PETALING JAYA: MN Holdings Bhd
’s recent RM128mil data centre (DC) contract win for the construction of a 275 kilovolt consumer landing station (CLS) highlights the group’s strong positioning in the DC ecosystem, according to Phillip Capital Research.
The company’s subsidiary, MN Power Transmission Sdn Bhd, recently accepted a letter of award for the construction, supply, installation, testing, and commissioning of the CLS for a DC in the central region of Peninsular Malaysia.
The contract commenced on Feb 10, 2026, and is expected to reach completion on Dec 17, 2026.
In a note, Phillip Capital Research said the contract brought MN Holdings’ outstanding unbilled order book to RM1.4bil, 64% of which is attributable to DC projects, bolstering the group’s earnings visibility through to the financial year ending Jun 30, 2027 (FY27).
“Assuming a 10% profit after tax margin for DC projects, we estimate this contract to contribute approximately RM13mil in profit after tax over FY26 to FY27,” it said.
According to MN Holdings, the contract was awarded by a customer involved in the provision of infrastructure for hosting, data processing services and related activities.
“We understand the project is a repeat order from its largest Customer A, which remains in an active expansion phase in Malaysia,” the research house said.
Additionally, it noted that this reinforces the group’s deepening role in the DC sector, with first-right-of-refusal rights with the customer supporting participation and boosting visibility for future project flows.
“Beyond this, we believe the current award is part of a multi-phase rollout, with two additional phases (approximately RM130mil each) alongside a new greenfield project in Selangor comprising three similar phases, underscoring continued aggressive DC expansion,” it said.
Currently, Tenaga Nasional Bhd’s projects still represent the bulk of its RM2.6bil tender book at 56%, while the remainder is split across DCs at 14%, solar at 14%, water and sewerage at 2%, gas pipelines at 1%, and other segments at 13%.
Year-to-date, MN Holdings has secured around RM850mil in new contracts, falling in line with Phillip Capital Research’s RM900mil order replenishment assumption for FY26.
As a result, the research house has made no changes to its earnings forecasts for the company.
Furthermore, it has also maintained its “buy” rating on the stock with a 12-month target price of RM2.59, pegged to an unchanged target 20 times price-to-earnings multiple on fully diluted 2026 earnings per share.
“We continue to like MN Holdings as a proxy for Malaysia’s expanding power infrastructure and strategic exposure in the rapidly growing DC and solar sectors,” it added.
