KUALA LUMPUR (March 5): Ongoing electricity grid upgrades and vibrant data centre projects are expected to sustain growth of MN Holdings Bhd (KL:MNHLDG), said Maybank Investment Bank (Maybank IB).

Following strong earnings in the recently-ended second financial quarter, the company may see a “slight” quarter-on-quarter dip in January-March due to near completion of several ongoing data centre projects, the research house said in a note.

New projects remain at early stages, which would see a “more meaningful ramp up” in the June-end quarter, Maybank IB said.

Overall, the research house maintained its “buy” call on MN Holdings with an unchanged target price of RM2.39.

Shares of MN Holdings have remained relatively steady so far this year after climbing more than 23% last year, as the company, which provides engineering services to power utilities, benefitted from stronger-than-expected billings from ongoing projects and data centre-related news flows.

Analysts are still unanimously bullish with all four research houses tracked by Bloomberg recommending “buy” on MN Holdings. The average target price is RM2.34, implying potential upside of 47% in the next 12 months from its last price of RM1.59 on Thursday.

MN Holdings’ outstanding contracts on hand stood at RM861.3 million at the end of 2025, with 41% of the jobs related to Tenaga Nasional Bhd (KL:TENAGA), while data centre projects accounted for about 39%. Other industries, such as sewerage and solar, accounted for the rest of its orderbook.

The company is bidding for new contracts worth RM2.9 billion, and prospects remain robust particularly with existing data centre clients, Maybank IB said.

“We understand that key existing clients are targeting to finalise several tenders” together worth about RM600 million by March to support their expansion, the research house noted. “We believe the company stands a strong chance of securing a meaningful portion of these contracts.”