KUALA LUMPUR (April 20): MN Holdings Bhd (KL:MNHLDG) rose on Monday to new all-time high as investors cheered its largest ever contract, while analysts scrambled to raise earnings forecasts.
While the company now has jobs on hand worth RM1.7 billion that will provide earnings visibility for at least two years, MN Holdings have also set itself up to win more contracts related to data centre projects, according to Phillip Capital and Hong Leong Investment Bank (HLIB).
MN Holdings “is gaining an edge in time-critical tenders, given its ability to secure 275kV transformer deliveries earlier than peers,” putting the company in a strong position to capture an upcoming wave of data centre jobs, HLIB said.
Shares of MN Holdings rose as much as 13 sen or nearly 7% to RM2.14. The stock was trading at RM2.13 at 10.40am, after more than seven million shares changed hands. At the last price, the company was valued at RM1.4 billion.
The stock has gained some 30% so far this year, thanks to a strong orderbook that could now cover more than three times the previous financial year’s revenue.
All four research houses tracked by Bloomberg maintained their “buy” call on MN Holdings, while its average target price rose to RM2.70 following latest revisions.
For Phillip Capital, the contract worth RM275 million announced on Friday also marks MN Holdings’ first contract secured from a new data centre client, with the tender-to-award cycle completed in less than a month.
“We view this as a strong validation of MN’s execution capabilities and growing reputation in the [consumer landing station] space, while also diversifying its customer base beyond existing clients,” the house added.