New DC job award positive for MN Holdings

PETALING JAYA: MN Holdings Bhd’s record RM294mil data centre (DC) contract win has lifted its outstanding order book to about RM2bil, with further phases of the development potentially providing fresh contract replenishment, analysts say.

The infrastructure utilities construction and engineering solutions specialist, through its wholly-owned subsidiary MN Power Transmission Sdn Bhd secured a letter of award worth RM293.88mil to construct two 275-kilovolts (kV) consumer landing stations (CLS) for a DC development in the central region of Peninsular Malaysia.

The award was made by Customer A, principally involved in computer consultancy, infrastructure hosting, data processing and related activities.

“The contract win brings the group’s year-to-date wins to about RM600mil, accounting for 46% of our RM1.3bil contract replenishment assumption, lifting the outstanding order book to approximately RM2bil, equivalent to 2.2 times financial year 2026 revenue cover,” according to Phillip Capital Research.

It estimates the contract could contribute RM24mil in net profit, assuming an 8% margin over the contract period.

Phillip Capital Research said the contract was MN Holdings’ largest single win to date, surpassing its previous record of RM276mil for a 275kV CLS project in the central region.

It added that MN Holdings’ tender book stands at about RM4.7bil, comprising Tenaga Nasional Bhd (TNB) projects (57%), DC (25%) and solar (9%).

The group’s pipeline is supported by TNB’s RM42.8bil regulated capital expenditure (capex) programme under its fourth regulatory period, of which RM5.6bil had been deployed in the first half of financial year 2026, as well as an additional RM15bil in grid investments announced under Budget 2027.

“Notably, this contract is from an existing DC customer and relates to a new phase of a development in the central region, with further phases offering potential order book replenishment,” it said.

Hong Leong Investment Bank (HLIB) Research said successful delivery of the project would further strengthen MN Holdings’ track record in securing larger DC contracts and winning new customers.

“Encouragingly, our channel checks suggest Customer A’s expansion plans remain strong heading into calendar year 2027, with potentially another three-to-four CLS jobs available for MN Holdings to capture,” HLIB Research said.

It expects significant DC project opportunities to pick up in 2027 and 2028, supported by an additional five gigawatts of capacity approved by the DC Task Force.

HLIB Research explained its assessment of mechanical and electrical contractors’ results briefings and TNB’s earnings call pointed to an acceleration in Malaysia’s power infrastructure investment cycle in CY27, with TNB expected to increase its regulated capex spending further to meet rising demand.

The entry of new DC players into Malaysia also presents another avenue for contract wins, with MN Holdings’ established track record positioning it to secure projects from these new customers, it added.