PETALING JAYA: MN Holdings Bhd
is likely to see further earnings acceleration in its next financial quarter on the back of higher order book recognition, analysts say.
Its results for the third quarter ended March 31, 2026 (3Q26) surpassed expectations, with core profit after tax for the first nine months of the financial year (9M26) rising 102.4% year-on-year to RM78mil.
The beat was driven by robust performance of the substation segment.
MN Holdings’ net profit in 3Q26 increased by 30% to RM21.4mil from RM16.5mil a year earlier, while revenue surged 57% to RM200mil from RM127.4mil in 3Q25.
Hong Leong Investment Bank (HLIB) Research said it expects earnings momentum to pick up as several major data centre (DC) projects worth approximately RM670mil commence.
“This should sustain into the second half of financial year 2026 as MN Holdings executes its record RM1.7bil order book, with a larger portion of projects expected to enter peak recognition by then,” it said.
Additionally, the research house said Tenaga Nasional Bhd’s latest capital expenditure spending guidance of RM13bil and RM15bil for the financial year 2026 (FY26) and FY27 respectively, compared with RM12bil in FY24, signal an acceleration in call-ups.
The company is also well-placed to bid for the multiple 500 kilovolt transmission main intake packages that are being rolled out, according to HLIB Research.
“We continue to see a robust flow of wins from DC projects, as well as large-scale solar 5 (LSS5) and LSS5 Plus packages.”
HLIB Research has raised its earnings forecasts for MN Holdings’ FY26, FY27 and FY28 by 25%, 19%, and 33% respectively, noting that the 9M26 core profit after tax already makes up 92% of its previous full-year forecast.
It maintained a “buy” call on the stock, with a raised target price of RM3.28, up from RM2.70 previously.
“We favour the group for its strong exposure to high-growth sectors such as solar and DC,” the research house said.
