KUALA LUMPUR (April 12): Hong Leong Investment Bank (HLIB) Research has valued MN Holdings Bhd (MNHB) at 45 sen and said it is projecting MNHB's FY2023f-25f core net profit to grow at a CAGR (compound annual growth rate) of 16.4%, backed by its order book of RM332.7 million and anticipated sustainable order replenishment.

In a note on Wednesday (April 12), the research house said it is worth noting that MNHB has recently entered into an MOU with Shanghai DC-Science Co Ltd, under which MNHB will provide the necessary utilities, including land, power supply, water supply and other infrastructure for the data centre project with a power load of 120MW.

“If this project materializes, we see an uptick bias in our forecast.

“We value MNHB at 45 sen, based on 12x FY2024f EPS (earnings per share) of 3.7 sen.

“This P/E ratio represents a significant discount compared to solar EPCC contractors and construction players, whose forward P/E ratios are 16x-20x and 15x, respectively,” it said.

HLIB said MNHB is in a favourable position to benefit from Tenaga Nasional Bhd’s sustainable transmission and distribution (T&D) investment and the perpetually increasing demand for power.

“Moreover, the thriving data centre industry in Malaysia has resulted in a greater requirement for power infrastructure, which presents an opportunity for MNHB to expand its order book,” it said.