KUALA LUMPUR (March 26): MN Holdings Bhd (KL:MNHLDG) climbed to a four-month high amid a new record-high order book that prompted analysts to raise forecasts for the engineering services firm.
The latest contract announced on Wednesday lifted MN Holdings’ outstanding orders to RM1.3 billion, keeping the company busy over the next two years, Hong Leong Investment Bank said, noting the same client, identified only as Customer A, could be dishing out more contracts to MN Holdings.
“We expect future contract wins from Customer A to gradually shift towards the Klang Valley as development activity moves into the region” and one contract could come as soon as June, the research house said.
On Thursday, MN Holdings rose as much as nine sen or 5% to RM1.88, the highest since November 2025. The stock was trading at RM1.87 at 11.35am as close to seven million shares changed hands. The company’s market capitalisation stood at RM1.2 billion based on its last price.
The company, which mainly provides services to power utilities, is benefiting from strong billings as national electric utility Tenaga Nasional Bhd (KL:TENAGA) embarked on grid upgrades to cater to a wave of energy-hungry data centres mushrooming in Malaysia.
Year to date, the stock has risen about 13%. All four research houses covering MN Holdings rate the stock ‘buy’ with an average target price of RM2.59, according to Bloomberg, implying a potential upside of 40% from the current price in the next 12 months.
MN Holdings has secured RM720 million in new contracts in the financial year to date, which exceeded expectations, and the company is expected to add new jobs worth RM1 billion in the next 12 months ending June 2027, according to Phillip Capital’s forecasts.
“We continue to like MN as a proxy for Malaysia’s expanding power infrastructure and strategic exposure” in the rapidly growing data centre and solar sectors, the research house said, noting that the stock is trading at just 11 times its forward earnings post-revisions and mostly below the three-year average.