KUALA LUMPUR (July 17): Phillip Capital has initiated coverage of MN Holdings Bhd (KL:MNHLDG) with a 'buy' rating at 97 sen, and a target price of RM1.20, pegged at a 20 times price-earnings multiple on fully diluted calendar year 2025 earnings per share.
The research house said MN is a key proxy for Malaysia’s rising energy demand, given its track record in executing Tenaga Nasional Bhd (KL:TENAGA) jobs with strategic exposure to both solar and data centres (DCs).
In a note on Wednesday, the research house expects MN’s three-year net profit compound annual growth rate at 49% over the financial year ended June 30, 2023 (FY2023) to FY2026, driven by a record-high order book of RM448 million and margin expansion from a higher proportion of DC related jobs.
“The order book prospect is growing alongside Malaysia’s increasing energy demand, as reflected by the tender book, which surged nearly fourfold from RM207 million in January 2024 to RM820 million in June.
“We are projecting RM400 million to RM480 million order book replenishment across FY2025 to FY2026, driven by ongoing tenders for DC, the solar Corporate Green Power Programme, and Tenaga-related opportunities," the research house added.