MN Holdings 2025 prospects strong, backed by record high order book: HLIB Research ()
<img src="https://thesun.my/binrepository/400x437/0c106/400d225/none/11808/TVLE/p14-mnh-substation-ke_5090287_20250401171738.jpg"><p></p><p><b>PETALING JAYA:</b> Hong Leong Investment Bank Bhd (HLIB Research) views the operational outlook for MN Holdings Bhd (MNH) in 2025 as strong. </p><p>The group boasts a record-high order book of RM892.4 million and a robust tender book of RM1.5 billion. </p><p>“Also, we see better pricing for Tenaga Nasional Bhd’s (TNB) projects, driven by the limited pool of M&E contractors and the strong pipeline of projects set to roll out in RP4. Additionally, MNH has highlighted a potential shift in DC development focus to the central region from the southern, which we reckon is favourable for the group’s UUE segment. </p><p>“The upcoming LSS5, LSS5+, and LSS6 projects will provide further upside to MNH’s order book,“ HLIB Research said in a report.</p><p>HLIB Research noted that as of March 13, MNH’s order book hit a record RM892.4 million, with over 50% coming from DC sector and TNB projects. </p><p>Despite this strong position, tender activity remains healthy. RM1.5 billion worth of projects are currently being bid on, with 70% involving TNB and DC opportunities. </p><p>HLIB Research noted that half of DC-related tenders come from existing clients, while the other half represent new business from Western-based DC operators. </p><p>“The group maintains a selective approach, pursuing projects that either strengthen its track record or deliver attractive margins, with ample opportunities still available in the market,“ the bank-backed research firm said.</p><p>Further, HLIB Research noted that the upcoming LSS5, LSS5+, and LSS6 projects (totaling 6GW) are set to boost MNH’s order book, surpassing TNB’s 4GW ESA for data centres. </p><p>“Unlike CGPP, LSS requires timely execution, ensuring quicker project rollout. MNH expects improved pricing power due to the larger market opportunity – LSS5 and LSS5+ alone exceed cumulative past utility-scale quotas – and limited competition among M&E specialists. </p><p>“Higher project capacities should also translate to bigger contract values and stronger margins,“ HLIB Research said.</p><p>HLIB Research maintains a “buy” call for MNH with an unchanged target price of RM1.54. </p><p>“We favour the group for its strong exposure to high-growth sectors such as solar and data centres. </p><p>“Additionally, MNH is well-positioned as a proxy for Malaysia’s rising power demand and stands to benefit from TNB’s capex upcycle,“ HLIB Research said.</p><p>MN Holdings’ businesses include provision of substation engineering services and solutions to private and public utilities companies in the power industry in Malaysia. The group boasts a record-high order book of RM892.4 million and a robust tender book of RM1.5 billion. <i>– MN Holdings pic</i></p>
