Power infrastructure jobs to lift MN’s performance

PETALING JAYA: MN Holdings Bhd continues to see orders from major clients, analysts say.

According to Phillip Research, earnings momentum for the construction company is expected to strengthen in the second quarter of its financial year ending June 30, 2026 (FY26).

Most of MN’s contructions jobs are from clients such asTenaga Nasional Bhd (TNB), which accounts for 43% and from the data centre segment that makes up another 36%, the research house said.

Earnings momentum moving forward is expected to be supported by the delivery of four TNB substation projects worth a combined RM94mil and steady progress on substation engineering, procurement, construction, and commissioning work worth RM170mil for an unnamed customer, and RM180mil for another unnamed customer, the research house added.

It said MN’s management update also highlighted that several key customers are accelerating the group’s project execution, which should translate into stronger revenue contribution in the coming quarters.

“That said, we expect earnings to taper slightly in the second half of FY26 as several projects reach completion in the first half, while newer projects are still in the early ramp-up phase,” Phillip Research said.

MN’s tender book rebounded to RM1bil, which is a 31% rise from the previous consecutive quarter, driven by sustained TNB tender cycles and RM285mil in other development substations projects, the research house said.

Phillip Research maintained its “buy” call and target price on MN of RM2.20 per share based on an unchanged 20 times price-earnings multiple on fully diluted earnings per share for FY26.