KUALA LUMPUR (Oct 15): MN Holdings Bhd (KL:MNHLDG) will benefit directly from Malaysia’s grid investment and renewable energy push in Budget 2026, according to the stock’s most bullish analyst.
Maybank Investment Bank raised its target price for MN Holdings to RM2.27, the highest among three research houses covering the stock, and kept its ‘buy’ recommendation to reflect sustained sector momentum post-Budget 2026.
Several green initiatives in Budget 2026, such as green asset investment tax allowances and the focus on developing cross-border power infrastructure under the Asean Power Grid, point to rising demand for substation and grid connection works, the house said in a note.
Shares of MN Holdings, which provides engineering services to power utilities, have already nearly doubled in the past 12 months thanks to a stronger-than-expected set of billings from ongoing projects and data centre related news flows.
Maybank IB’s target price implies another 30% upside from the stock’s current level. Phillip Capital and Hong Leong Investment Bank both also have ‘buy’ calls on MN Holdings.
MN Holdings’ orders on hand remain robust at RM1.1 billion while the company bids for contracts worth RM1.2 billion, Maybank IB said as it raised its earnings forecasts by 7%-12% for the next three years due to the job opportunities.
Further, one of the major data centre projects is expected to be completed in the current financial year ending June 30, 2026 (FY2026), the research house said.
All in all, MN Holdings could secure jobs worth RM600 million over FY2027-FY2028 supported by ongoing data centre client expansion, renewable energy-related works, and higher substation demand under the Asean Power Grid roll-out, Maybank IB added.