Maybank Investment Bank Berhad
Date of Report: August 26, 2025
MN Holdings Delivers Record FY25 Results, Raises Outlook on Data Center and Grid Infrastructure Boom

MN Holdings: Surpassing Expectations in FY25

MN Holdings (MNHLDG MK) has delivered a stunning set of results for FY25, significantly outperforming both internal and market forecasts. With its core net profit soaring by 169% year-on-year to MYR48.4 million, MN Holdings is cementing its status as a leading player in Malaysia’s energy and infrastructure sector. The company’s strong execution, especially in substation engineering and data center (DC) projects, is driving robust growth and margin expansion.

Key Financial Highlights for FY25

• FY25 net profit: MYR48.4 million (+169% YoY)
• EBIT margin: 13.1% (vs. previous 11.1% assumption)
• Revenue growth: +110% YoY, led by accelerated project execution
• Substation engineering revenue: +167% YoY, driven by DC projects
• Impairment on contract assets: MYR11.8 million (excluded from core earnings due to recurring timing mismatch)
• Order book: MYR1.2 billion; active tender book: MYR1.8 billion

Data Center Projects Continue to Fuel Growth

Data center (DC) contracts have emerged as the main growth engine, with management expecting the DC cycle to sustain through 2030. MN Holdings’ MYR1.8 billion tender book and MYR1.2 billion order book highlight the strong demand for grid infrastructure and high-voltage substation works—especially in Johor, where several 275kV and 500kV projects are in the pipeline.

• DC contracts contributed to the accelerated revenue and margin expansion in FY25.
• Substation engineering, particularly for DCs, led to a 2.7 percentage point EBIT margin increase.
• TNB’s increased Energy Supply Agreement signings (6.4GW as at 1Q25, up from 5.9GW at end-FY24) set the stage for more grid infrastructure jobs.
• MNH is well-positioned to secure high-margin, fast-track projects, including those linked to battery energy storage systems (BESS) and large-scale solar (LSS5, LSS5+, LSS6).

Order Pipeline and FY26–28E Outlook

Looking ahead, MN Holdings maintains a replenishment target of MYR500 million per annum for FY26–FY28E, supported by DC, TNB, and renewable energy projects. The company’s focus on higher-margin jobs, particularly in the fast-growing DC segment, underlines its strategic positioning.

• FY26E–FY27E core PAT forecasts raised by 7%/10% due to improved margin assumptions (EBIT margin now 12.6–13.0%).
• Annual job win assumption of MYR500 million retained for FY26–28E.
• Strong medium-term earnings visibility backed by a robust order and tender book.

Major Contracts Secured in FY25

MN Holdings’ contract wins in FY25 span a diverse array of high-value infrastructure projects, underscoring its execution strength and market reach.

Peer Comparison: Sector Analysis

MN Holdings stands out among Malaysian infrastructure and solar EPCC peers for its order book scale, margin profile, and return metrics. Below is a sector comparison table for 2025/2026.

Value Proposition and Strategic Positioning

MN Holdings is recognized as a top-tier infrastructure contractor specializing in high-voltage substation engineering and underground utilities. Its customer base includes both public sector (TNB) and private clients such as DC and solar developers. The company’s business is closely tied to Malaysia’s energy transition and digital economy, with DC (58%) and TNB substation jobs (33%) forming the majority of its portfolio. The remaining 9% comes from diversified segments, reflecting MN Holdings’ growth agility.

• Core business: Power infrastructure works, high-voltage substation EPCC, and 275kV underground cabling.
• Order book replenishment: MYR500 million annually, with strong visibility for future earnings.
• Record earnings: FY25 PAT of RM12.7 million in 2Q, a 217% YoY increase.
• Market capitalization: MYR848.4 million (USD202 million), with 562 million issued shares.
• Major shareholders: TOH ENG KEAT (16.4%), LOY SIONG HAY (16.0%), DANG SIONG DIANG (7.2%).

Share Price & Performance

• Share price: MYR1.51, with a 12-month target price of MYR1.92 (+27%).
• 52-week high/low: MYR1.70 / MYR0.84
• 3-month average turnover: USD2.3 million
• Relative performance: +69% absolute, +73% relative to index over 12 months.

Financial Metrics and Forecasts

MN Holdings is forecasted to deliver a 3-year core net profit CAGR of 16.1% from FY25–27E. The company maintains a healthy financial profile with net cash positions, consistent margin improvement, and strong ROAE and ROAA metrics.

Risks and Opportunities

Upside Drivers:

• Stronger-than-expected contract wins, especially in substation and DC segments
• Higher TNB and government CAPEX rollout, including additional renewable energy-linked projects (LSS6, CGPP)
• Favorable tender outcomes on high-value projects

Downside Risks:

• Project delays impacting billing and cash flow
• Cost inflation or supply chain disruption compressing margins
• Growing competition in underground utilities space

Conclusion: MN Holdings Poised for Sustained Growth

MN Holdings’ exceptional FY25 performance validates its strategic focus on high-growth segments such as data center infrastructure and grid upgrades. With robust financials, an expanding order book, and continued margin improvement, MN Holdings is well placed to capitalize on Malaysia’s energy transition and digital economy boom. Investors can expect resilient earnings, strong visibility, and potential upside from ongoing sector tailwinds.

Broker Contact Information

Maybank Investment Bank Berhad, 33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur, Malaysia. Tel: (603) 2059 1888.