PETALING JAYA: MN Holdings Bhd
(MNH) is set for stronger earnings in the coming quarters as the bulk of its recently secured data centre (DC) projects move into a higher revenue recognition phase, according to Hong Leong Investment Bank (HLIB) Research.
The research house said that most of the group’s approximately RM1bil in DC-related jobs secured in the first half of calendar year 2026 (1H26) were still at the initial stages of execution in the latest quarter.
MNH reported fourth-quarter ended June 30 core profit after tax and minority interests (Patami) of RM22.8mil, down 8.9% quarter-on-quarter but up 2.1% year-on-year (y-o-y).
This brought its financial year 2026 core Patami to a record RM100.8mil, which was up 65.5% y-o-y.
The results were within HLIB Research’s and consensus expectations, accounting for 95% and 98% of their respective full-year forecasts.
The research house said the FY26 core Patami figure was after adding back RM8.7mil in impairment losses, deposit write-offs, foreign exchange losses and other non-core items.
“We expect the 2H26 wins to be weighted towards Tenaga Nasional Bhd, with most of MNH’s record Tenaga-related tenders having been outstanding for six to eight months and now approaching the award stage.
“The DC pipeline also remains strong, supported by both new operators entering Malaysia and existing operators adding more sites amid robust offtaker demand,” said HLIB Research.
Phillip Capital Research also said MNH’s results were in line with its expectations, and expects a stronger 1H27.
“We reiterate ‘buy’ rating with an unchanged target price (TP) of RM4.57, based on an unchanged 24 times price-to-earnings multiple on revised fully diluted 2027 earnings per share.
We continue to like MNH as a proxy for Malaysia’s expanding power infrastructure with strategic exposure in the rapidly growing DC and solar sectors,” it said.
HLIB Research too kept its “buy” call with a RM3.95 TP.
