PETALING JAYA: Analysts remain optimistic on Malaysia Marine and Heavy Engineering Holdings Bhd
’s (MMHE) prospects, underpinned by a healthy order book, growing exposure to clean energy and low carbon projects and improving contract selectivity.
The group reported a core net profit of RM16.3mil in the first quarter of financial year 2026 (1Q26), which came in mostly within market expectations.
In a report, TA Research said, “We expect earnings momentum to improve progressively over the coming quarters, supported by a gradual ramp-up in offshore wind fabrication activities under the heavy engineering segment.”
The brokerage firm, which has a “buy” call on the stock at a higher target price of 58 sen, said it remains constructive on MMHE’s domestic fabrication prospects.
This will be supported by Petroliam Nasional Bhd’s 2026 to 2028 upstream activity pipeline.
“Based on our industry checks, several medium-sized wellhead platform packages are expected to be tendered out in 2026, with up to eight packages currently identified.” TA Research added.
BIMB Research in a note to clients said MMHE’s total order book rebounded to RM4.7bil in 1Q26 compared with RM4bil in 4Q25 underpinned by new contract awards. Its tender book also remained healthy at RM10.8bil in 1Q26, signalling sustained demand visibility.
