UNDERGROUND utilities and substation engineering specialist MN Holdings Bhd has bagged contracts worth RM315 million since the beginning of its new financial year from July 1, 2024, pushing its outstanding orderbook to a historic high of RM625.8 million, up from RM192.5 million since the end of the last financial year ended June 30, 2024.

The company has secured a few underground utilities and substation engineering projects, including three substation engineering projects.

“The orderbook will provide MN Holdings’ earnings for the next two to three financial years,” said ED Datuk Dang Siong Diang in a statement.

The company said it will continue to enhance its orderbook through tenders, submission of private initiative proposals and business collaboration or acquisition.

MN Holdings’ wholly owned subsidiary MN Power Transmission Sdn Bhd had recently been awarded a RM63 million contract from Tenaga Nasional Bhd (TNB) to develop a battery energy storage system that uses batteries to store and distribute electricity.

a Aside from that, MN Power Transmission had also secured another substation project for substation engineering with contract sum of RM6.6 million. The project involved to supply, dismantle, install and commissioning a new extension of 2 x 132 kV overhead lines bays at the existing Tanjung Kupang substation.

For its financial year ended June 30, 2024, MN Holding’s revenue jumped 56% to RM256.2 million from RM164.5 million a year ago, backed by higher revenue contribution from the substation engineering segment, which increased 76% to RM135.2 million from RM76.8 million in financial year ended June 30, 2023.

As at June 30, its cash position stood at RM35 million. Net assets per share of the company stood at 26 sen.

The company’s record revenue performance also translated into a net profit of RM17.2 million in financial year ended June 30, 2024, almost-doubled from RM9.3 million in the previous year’s corresponding period.

Correspondingly, earnings per share (EPS) rose to 3.3 sen from 2.1 sen previously.

The company anticipated significant growth opportunities in water and sewerage capital expenditure from major utility providers in the sector.

“Water and sewerage are crucial utilities for all new development projects and the maintenance and replacement of aging pipelines are essential.

“As a result, companies specialising in underground utilities engineering services are positioned to benefit from capital investments aimed at designing, constructing, installing, repairing and maintaining water and sewerage infrastructure,” he said.

MN Holdings is principally involved in the provision of infrastructure utilities services comprising underground utilities engineering services and solutions and substation engineering services and solutions.

The company mainly serves customers in power, gas, sewerage and telecommunications industries in Malaysia.

Its shares ended yesterday’s trade at 93 sen (52-week high/low: RM1.12/48 sen), valuing the company at RM450 million. — TMR