KUALA LUMPUR (May 14): MN Holdings Bhd’s (KL:MNHLDG) stock rose to a new all-time high on Wednesday as Maybank Investment Bank joined coverage of the utilities engineering services firm.

Net profit of MN Holdings could potentially expand at an average annual rate of nearly 50% over the next three financial years amid the energy transition and industrial growth, Maybank said and issued a ‘buy’ call on the stock with a target price of RM1.69.

As a firm that provides engineering services to utilities, MN Holdings benefits from power grid upgrades, rising demand from data centres and semiconductors as well as a shift to renewable energy, Maybank said in initiating its coverage.

Share price of MN Holdings climbed as much as 11 sen or 9% to RM1.34. The stock ended the day at RM1.31 after nearly 18 million shares changed hands. At the last price, the company has a market capitalisation of RM736 million.

Maybank joins Hong Leong Investment Bank and Phillip Capital in issuing ‘buy’ calls on MN Holdings. The consensus target price is now RM1.70 based on the average of the three houses tracked by Bloomberg, suggesting a potential return of up to 30% in the next 12 months from the current price.

Shares of MN Holdings have recouped all of their losses during the April selldown sparked by US tariff turmoil, and are now up nearly 3% since the start of 2025.

MN Holdings will likely report a net profit of RM45 million this year, according to Maybank’s estimates.

There are multiple growth drivers driving demand for high-voltage infrastructure, where MN Holdings has strong capabilities, the research house said, noting that the company is also expanding into “adjacent segments like sewerage and flood mitigation within its core utility expertise”.

MN Holdings’ RM1.16 billion order book is anchored by data centres and jobs related to national electric utility Tenaga Nasional Bhd (KL:TENAGA), Maybank said, noting that its tender pipeline of RM1.77 billion adds further visibility.

At the target price of RM1.69, MN Holdings would be valued at about 17 times fully diluted earnings for the financial year ending June 30, 2026, which is in line with mechanical engineering and plumbing peers.

The valuation reflects MN Holdings’ “solid earnings momentum, improving visibility and its strong footing in Malaysia’s power infrastructure utilities”, Maybank added.