Wednesday 27 Nov 2024
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KUALA LUMPUR (Aug 12): Shares in MN Holdings Bhd (KL:MNHLDG) rose to a new record high on Monday, following news of a joint venture (JV) to bid for a solar project in Pulau Tioman. However, the morning rally fizzled out later in the day.

After climbing as much as five sen or nearly 5% to RM1.12, MN Holdings dropped to an intraday low of RM1.03, before closing at RM1.04, down three sen or 2.8% from last Friday's closing price of RM1.07.

Some 16.38 million shares changed hands, more than tripled the 200-day average volume of 5.34 million shares.

Shares in MN Holdings have more than doubled so far this year, tracking a broad rally among companies with exposure to solar power. The stock was listed in April 2022, and has seen a five-fold jump from its initial public offering price of 21 sen per share.

The bid, if successful, will help MN Holdings increase its order book replenishment, said Phillip Capital, one of only two research houses covering MN Holdings. “We view this JV positively,” the house said.

MN Holdings is partnering Reservoir Link Energy Bhd (KL:RL) to tender for the solar project in Pulau Tioman, which is being taken up by Tenaga Nasional Bhd (KL:TENAGA).

MN Holdings’ 100%-owned unit MN Power Transmission Sdn Bhd, and Founder Energy Sdn Bhd, a 51%-owned subsidiary of Reservoir Link, are forming the 20:80 JV to submit a tender for the project, MN Holdings said in a filing last Friday.

Under the JV, MN Power Transmission plans to undertake the supply, installation and related works for interconnection PV systems, outdoor ground mounted metering kiosks, as well as preliminary work compliance at the construction sites.

Founder Energy will concurrently undertake supply, installation and related works for building integrated PV systems, civil works, testing and commissioning, and all others.

Phillip Capital said it is keeping its earnings forecasts for now, amid limited contributions seen from the JV. The JV is eyeing only small contracts with a total value of under RM10 million, the house noted.

Still, Phillip Capital maintained its "buy" recommendations on MN Holdings with an unchanged target price of RM1.20, a 10% upside from its last price. Hong Leong Investment Bank, the only other research house covering the stock, also rates MN Holdings a "buy", with a target price of RM1.62 as of Aug 2.

Read also:
MN Holdings, Reservoir Link unit eye TNB’s small-scale solar project in Pulau Tioman
MN Holdings partners with China's construction giant to explore power industry projects
MN Holdings expected to secure more contracts with TNB — HLIB Research

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