MN Holdings Berhad’s net profit for the first quarter ended 30 September 2023 (1QFY24) jumped more than three-fold or 250.3% to RM4.19 million from RM1.2 million a year ago.
In a statement today (Nov 29), the group said underpinning the strong financial performance for the quarter was the strong demand for its underground utilities and substation engineering services from its customers in the power, gas and sewerage industries.
Its quarterly revenue increased by 103.81% to RM55.15 million from RM27.06 million a year ago, on higher revenue contribution from its substation engineering segment, which increased 186.0% to RM30.09 million from RM10.51 million in 1QFY23.
Underground utilities and substation engineering specialist’s earnings per share rose to 1.02 sen from 0.29 sen previously.
Reviewing on its 1QFY24 performance, its managing director Datuk Loy Siong Hay said it was the the group’s best quarterly performance since its listing on the ACE Market of Bursa Malaysia Securities Berhad in April 2022.
“During the quarter under review, MN Holdings has seen a surge in demand for its underground utilities and substation engineering services from customers in the power sector, which accounted for 94.9% of its overall revenue followed by gas (4.1%) and sewerage (1.1%) sector.
“The significant jump in revenue contribution from the substation engineering segment, which increased 186.0% to RM30.09 million from RM10.51 million a year ago has further lifted the our net profit in 1QFY24,” he added.
Looking ahead, Loy said MN Holdings remains confident and resilient with the current FY24 performance as a few of the substation engineering projects will be completed, allowing the group to recognised substantial earnings contribution from these projects.
“The booming demand for data centre in Malaysia is an opportunity for us. Since 2022, we have secured six underground utilities and substation engineering contracts for data centre in Johor to provide engineering services related to power utilities,” he added.
Following the positive outcome for the quarter, the management is actively monitoring and implementing measures to ensure the smooth progress of construction and to replenish the group’s order book.
As of today, MN Holdings’ order book stands at RM345.37 million. These secured contracts are expected to positively impact the group’s earnings over the next two to three financial years, barring any unforeseen circumstances.
