KUALA LUMPUR (July 24): MN Holdings Bhd (KL:MNHLDG) said it has secured a contract worth RM136.24 million to undertake power landing station works for a data centre service provider.

The latest contract is in addition to a previous contract won by MN Holdings from the same customer to perform earthworks, retaining walls and piling works worth RM7.1 million for the same landing station.

MN Holdings said it is unable to disclose the customer’s identity due to a non-disclosure agreement. The data centre project is located in the southern region of Malaysia, it said.

With the latest job win, the underground utilities and substation engineering specialist’s outstanding order book increased to a total value of RM568.5 million.

In a statement, MN Holdings executive director Datuk Dang Siong Diang said the company is prepared to bid for more projects in the category, pointing to a strong data centre project pipeline in Selangor and Johor.

"We don’t see a slowdown in power infrastructure projects in the coming years as Malaysia has attracted more than 50 data centres within the last two years, putting it on track to become a new data centre hub in Southeast Asia.

“Inclusive of the latest contract win, in total, MN Holdings has clinched RM291.5 million worth of ongoing data centre contracts that will keep the company busy for the next two years,” Dang said.

The contract scope of work comprises design, supply, installation, maintenance, testing and commissioning for a new 275 kilovolt (kV) consumer landing station (CLS), including main building works, guardhouse and external works, and dismantling and relocating the existing 33/11kV containerised CLS to the new 33/11kV Interim CLS for Customer A under Package 2.

Aside from data centre-related projects, MN Holdings also recently won contracts in the solar photovoltaic segment, including a RM26 million contract for a large scale solar plant in Kedah, and works related to rehabilitation of solar hybrid stations.

Out of MN Holding’s RM568.5 million order book, RM546.7 million are projects from the power and gas industries, with the remaining RM21.8 million from the water and sewerage industry.

In the water and sewerage infrastructure sector, MN Holdings is similarly looking for opportunities, riding on the government’s focus to address non-revenue water challenges as well as rising demand for water to support the data centre boom.

Shares of MN Holdings have risen by 82% this year. The counter settled down one sen or 1.03% at 96.5 sen on Wednesday, giving it a market capitalisation of RM445.96 million. At its last close, the counter is up more than four-fold compared with its initial public offering price of 21 sen per share a little over two years ago in April 2022.