KUALA LUMPUR (Aug 11): MN Holdings Bhd (KL:MNHLDG) surged on Tuesday to a new record high after bagging a contract while analysts said earnings could be better-than-expected in the next 12 months.
Hong Leong Investment Bank and Phillip Capital raised their earnings forecasts by at least 10% for the financial year ending June 2027 and 2028 after the engineering services firm bagged a contract worth RM122.3 million through its joint venture. MN Holdings has 80% share in the joint venture.
“… we expect more wins over the remainder of FY2027,” Hong Leong Investment Bank said and raised its target price to RM3.95. The research house also maintained a ‘buy’ call on the stock.
Shares of MN Holdings rose as much as 25 sen or 8% to RM3.28. The stock ended Tuesday at RM3.25 after some six million shares exchanged hands.
MN Holdings, which mainly provides services to power utilities, has nearly doubled its market value since the year began to over RM2 billion amid major grid upgrades to cope with a wave of energy-hungry data centres mushrooming in Malaysia.
All four research houses tracked by Bloomberg maintained their “buy” call on MN Holdings, while the average target price has risen to RM3.70 following latest revisions.
The latest contract brings the outstanding order book to RM1.8 billion that will keep generating earnings until FY2028, according to Phillip Capital.
“This direct award reinforces our view of a growing opportunity” as national electric utility firm Tenaga Nasional Bhd (KL:TENAGA) steps up spending on grid upgrades, the research house said.