MN Holdings get 'Buy' with target price of RM1.69
POWER infrastructure specialist MN Holdings Bhd has received a 'Buy' call in an initiation report with a 52-week target price of RM1.69, reflecting 17-times fully diluted of its earnings per share (EPS) for the 2026 financial year.
'In our view, this valuation reflects MN Holdings' solid earnings momentum, improving visibility and its strong footing in Malaysia's power infrastructure utilities,' Maybank Investment Bank Bhd said in the report on the company released today.
Listed on ACE Market of Bursa Malaysia in April 2022 at 21 sen, the counter's 52-week high/low was RM1.31/71 sen. It was trading at RM1.25 at 10am today.
All three brokers tracked by Bloomberg covering the stock have 'Buy' calls with a consensus target price of RM1.70.
The report noted that MN Holdings had benefited from grid upgrades under Tenaga Nasional Bhd's (TNB) regulatory period 4 (RP4), rising demand from data centres (DC) and semiconductors as well as shift to renewable energy (RE) under National Energy Transition Roadmap (NETR).
It projected that the company' score net profit would grow at a three-year compound annual growth rate (CAGR) of 49.7% (FY24–27E), supported by a strong order book and healthy tender pipeline.
The report said MN Holdings has secured a string of new contracts in September 2023, particularly in the DC and power infrastructure segment, including the consumer landing station (CLS) contract for GDS DC in Johor and a turnkey power distribution project in Teluk Intan.
It said back-to-back deals in early April 2024 – including a 50MW solar contract in Kedah and a new JV in cybersecurity – further lifted sentiment, expanding its reach in both renewable and digital spaces. –TMR
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