KUALA LUMPUR (March 13): After securing its largest-ever substation contract, MN Holdings Bhd (KL:MNHLDG) is poised to win more jobs, Hong Leong Investment Bank (HLIB) said.
The group’s wholly-owned subsidiary, Mutu Nusantara Sdn Bhd, was recently awarded a RM216 million customer logistics substation project in the southern region of Peninsular Malaysia scheduled for completion by September 2026.
The project marks Phase 2 of MN Holdings' previous record-breaking contract win in 2025.
"This contract represents MN Holdings’ largest substation project to date and marks Phase 2 of its previous largest contract win in 2025. During its 2QFY2026 results briefing (for the second quarter ended Dec 31, 2025), the management indicated that RM600 million worth of data centre contracts are currently at the finalisation stage.
"With RM216 million already secured, we expect a further RM400 million of contracts to be awarded over the near term," HLIB said in a note on Friday, adding that the potential contract wins could reach RM900 million in FY2026.
Notably, the Phase 1 project was ahead of schedule, taking only eight months to complete (December 2025 fully energised versus the first half of calendar year 2026 as stated in the letter of award).
“We believe MN Holdings’ strong execution track record has paved the way for this Phase 2 award,” said HLIB.
With this latest win, MN Holdings’ order book was boosted to RM1.05 billion, providing a 1.9 times cover of FY2025 revenue.
Beyond data centres, HLIB sees “ample opportunities” across solar and Tenaga Nasional Bhd (KL:TENAGA)-related projects, supported by the group’s substantial RM2.9 billion tender book.
HLIB raised the group’s earnings forecasts by 2.3%/9.5%/10.5% for FY2026/FY2027/FY2028 respectively to reflect a higher project win assumption.
HLIB maintained its 'buy' call on MN Holdings with a higher target price of RM2.55, based on 22 times 2026 fully diluted earnings per share of 11.6 sen.