Broker: Maybank Investment Bank Berhad
Date of Report: May 28, 2025
MN Holdings’ Stellar Earnings Surge: Data Centre Wins and Power Infra Pipeline Fuel Bright Outlook
Strong Earnings Momentum and Robust Order Book Signal Promising Growth for MN Holdings
MN Holdings Bhd (MNHLDG MK) continues its impressive growth trajectory, delivering robust financial results for 9M25 and reinforcing its position as a leading player in Malaysia’s energy infrastructure sector. The company’s latest quarterly report highlights surging profits, record order book levels, and a strong pipeline of power infrastructure projects, underscoring a steady outlook and solidifying the company’s “BUY” rating with a target price of MYR1.69.
Highlights from the 9M25 Results: Surpassing Expectations
MN Holdings’ 9M25 results aligned with expectations, accounting for 80% of Maybank’s and 78% of consensus full-year forecasts.
3Q25 core net profit (excluding forex gains) reached MYR16.7 million, marking a 228% YoY and 17% QoQ increase.
9M25 core earnings soared to MYR36.4 million, up 180% YoY, driven by a significant uptick in revenue from the substation engineering segment and milestone project deliveries.
Revenue and Segmental Performance
– 3Q25 revenue surged 150% YoY, mainly due to the substation engineering segment (+248% YoY), fueled by data centre (DC) and Tenaga Nasional Berhad (TNB) contracts. – For 9MFY25, total revenue grew 97% YoY, buoyed by accelerated project execution and strong billings from DC-related substation works. – The group declared a second interim dividend of 0.10 sen/share for 3Q25.
New Data Centre Contract Win: Strengthening the Order Book
MN Holdings secured a MYR52.5 million contract for Phase 2 expansion of a consumer landing station in the southern region, targeted for completion by 30 September 2025.
The project encompasses design, supply, installation, and testing of substation equipment and related civil works to support DC infrastructure needs.
Outstanding order book now stands at MYR1.1 billion, which is 4.3x FY24 revenue, slightly lower than the previous estimate of MYR1.2 billion due to partial recognition of secured contracts.
Year-to-date, MN Holdings has secured MYR714 million worth of projects.
Power Infrastructure Outlook: Anchored by a Strong Pipeline
MN Holdings’ future prospects are anchored by ongoing power infrastructure upgrades, underpinned by TNB’s grid enhancements, rising DC demand, and semiconductor sector expansion.
The company’s MYR1.7 billion tender pipeline offers additional growth potential, maintaining the group’s earnings visibility and supporting the positive outlook.
MN Holdings: Share Price and Performance Snapshot
Current share price: MYR 1.30
12-month price target: MYR 1.69 (upside of +30%)
52-week high/low: 1.33/0.73 MYR
Free float: 56.9%
Market capitalisation: MYR 730.4 million (USD 172 million)
Major shareholders:
TOH ENG KEAT: 16.4%
LOY SIONG HAY: 16.0%
DANG SIONG DIANG: 7.2%
Price Performance
– 1M: +13% (absolute), +11% (relative to index) – 3M: +20% (absolute), +24% (relative) – 12M: +74% (absolute), +84% (relative)
Key Financial Tables: MN Holdings at a Glance
| FYE Jun (MYR m) |
FY23A |
FY24A |
FY25E |
FY26E |
FY27E |
| Revenue |
164 |
256 |
589 |
780 |
819 |
| EBITDA |
17 |
30 |
67 |
90 |
97 |
| Core net profit |
10 |
19 |
45 |
60 |
64 |
| Core FDEPS (sen) |
2.5 |
3.4 |
7.8 |
9.9 |
10.4 |
| ROAE (%) |
14.0 |
18.2 |
32.3 |
31.2 |
25.1 |
| Net dividend yield (%) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Quarterly and Segmental Analysis: 3QFY25 Key Metrics
| Quarterly (MYR m) |
3QFY25 |
3QFY24 |
% YoY |
2QFY25 |
% QoQ |
9M25 |
9M24 |
% YoY |
| Revenue |
127.4 |
51.1 |
149.3% |
125.5 |
1.5% |
356.0 |
181.2 |
96.5% |
| Core Net Profit |
16.7 |
5.1 |
228.1% |
14.25 |
17.1% |
36.4 |
13.0 |
179.6% |
| Gross Margin (%) |
24.3 |
23.1 |
+1.2ppt |
21.0 |
+3.2ppt |
21.7 |
19.6 |
+2.1ppt |
| EBIT margin (%) |
17.9 |
13.2 |
+4.7ppt |
14.1 |
+3.8ppt |
14.3 |
10.3 |
+4.0ppt |
Segmental Revenue Breakdown (3QFY25 vs 3QFY24)
- Underground Utilities & Engineering (UUE): MYR 30.3m (up from MYR 24.0m)
- Substation: MYR 97.1m (up from MYR 27.9m)
Peer Comparison: MN Holdings vs. Sector Players
| Company |
Ticker |
Price (MYR) |
Market Cap (MYRm) |
PER (x) CY24A |
PER (x) CY25F |
PER (x) CY26F |
PBV (x) CY24A |
ROE (%) CY24A |
| Jati Tinggi Group Bhd |
JTGROUP MK |
0.31 |
121 |
17.7 |
16 |
N/A |
1.8 |
18.5 |
| HE Group Bhd |
HEGROUP MK |
0.26 |
112 |
12.6 |
9.4 |
5.8 |
1.8 |
30.8 |
| Critical Holdings Bhd |
CHB MK |
0.66 |
245 |
21.7 |
22.1 |
7.3 |
3.7 |
43.9 |
| MN Holdings Bhd |
MNHLDG MK |
1.18 |
675 |
19.4 |
12.2 |
10.8 |
4.04 |
24.9 |
| Solarvest Holdings Bhd |
SOLAR MK |
1.7 |
1,282 |
30.2 |
19.6 |
16.6 |
3.9 |
14.5 |
| Samaiden Group Bhd |
SAMAIDEN MK |
1.06 |
475 |
24.9 |
18.3 |
14.6 |
3.3 |
14.3 |
Key Financial and Operational Ratios
- EBITDA Margin: 11.3% (FY25E)
- EBIT Margin: 11.1% (FY25E)
- Pretax Profit Margin: 10.5% (FY25E)
- Net Profit Margin: 7.7% (FY25E)
- Return on Average Equity (ROAE): 32.3% (FY25E)
- Net Gearing: Net cash position maintained
- Current Ratio: 1.8 (FY25E)
Cash Flow and Balance Sheet Strength
- Cash & Short Term Investments: MYR 73.9m (FY25E), rising to MYR 170.2m by FY27E
- Net cash flow projected at MYR 35.7m (FY25E), increasing to MYR 61.4m (FY27E)
- Net gearing remains in a net cash position throughout the forecast period
Growth and Efficiency Metrics
- Revenue Growth: 129.8% (FY25E), moderating to 32.4% (FY26E)
- EBITDA Growth: 125.5% (FY25E)
- Cash Conversion Cycle: Improving to 74.2 days (FY25E)
Conclusion: MN Holdings Set for Sustained Outperformance
MN Holdings Bhd’s exceptional earnings momentum, growing order book, and strong pipeline of power infrastructure and data centre projects signal a compelling investment case. With a robust financial profile, high ROE, and net cash position, MN Holdings stands out among Malaysian infrastructure players. The company is well-positioned to capitalize on the ongoing power grid upgrades, burgeoning data centre demand, and semiconductor sector growth, making it a top pick for investors seeking exposure to Malaysia’s infrastructure boom.
Other Companies Covered: Sector Peer Analysis
Jati Tinggi Group Bhd (JTGROUP MK)
- Current Price: MYR 0.31
- Market Cap: MYR 121 million
- PER (CY24A): 17.7x
- PBV: 1.8x
- ROE: 18.5%
HE Group Bhd (HEGROUP MK)
- Current Price: MYR 0.26
- Market Cap: MYR 112 million
- PER (CY24A): 12.6x
- PER (CY25F): 9.4x
- PBV: 1.8x
- ROE: 30.8%
Critical Holdings Bhd (CHB MK)
- Current Price: MYR 0.66
- Market Cap: MYR 245 million
- PER (CY24A): 21.7x
- PER (CY25F): 22.1x
- PBV: 3.7x
- ROE: 43.9%
Solarvest Holdings Bhd (SOLAR MK)
- Current Price: MYR 1.7
- Market Cap: MYR 1,282 million
- PER (CY24A): 30.2x
- PER (CY25F): 19.6x
- PBV: 3.9x
- ROE: 14.5%
Samaiden Group Bhd (SAMAIDEN MK)
- Current Price: MYR 1.06
- Market Cap: MYR 475 million
- PER (CY24A): 24.9x
- PER (CY25F): 18.3x
- PBV: 3.3x
- ROE: 14.3%
Investment Thesis: Why MN Holdings Remains a Top Pick
With its strong earnings visibility, scalable order book, and exposure to high-growth infrastructure sectors, MN Holdings is well-placed to sustain its outperformance. Backed by a proven track record in project execution and a robust financial position, the company offers investors a compelling growth story in Malaysia’s infrastructure landscape. The reaffirmed “BUY” rating and 30% upside potential underscore the confidence in MN Holdings’ long-term prospects.
